Paluck Technologies Plans RMC Fleet for Leasing Operations

Paluck Technologies plans to deploy new Ready-Mix Concrete (RMC) machinery in leasing operations, rather than solely for project execution. The company proposes to use up to Rs 10 crore of net issue proceeds for the equipment, with indicative quotations covering 21 RMC vehicles, one batching plant and related accessories at a pre-tax cost of Rs 10.40 crore.

How will Paluck Technologies use its RMC fleet in leasing operations?

Paluck Technologies says its proposed plants, machinery, vehicles and diesel generator sets will be deployed in its leasing segment. The company expects the leasing model to provide stable and recurring cash flows while allowing optimum asset utilisation, although the disclosure does not provide lease rates, contract periods, expected utilisation or projected leasing revenue.

Paluck Technologies plans to install and use the equipment at customer locations under leasing agreements. During idle periods, the equipment is proposed to be parked at the company’s warehouse at Ashok Leyland Division, NH-8, Khijuri, Dharuhera, District Rewari, 123106; recurring leasing cash flows therefore depend on customer agreements, delivery, installation and control of non-utilisation periods.

The equipment allocation is one of three quantified uses of net proceeds. Paluck Technologies has also proposed up to Rs 3.10 crore for repayment or prepayment of borrowings and up to Rs 10 crore for working-capital requirements, meaning the proposed fleet spending is matched by a working-capital allocation rather than representing the sole stated use of funds.

What RMC machinery does Paluck Technologies propose to acquire?

Paluck Technologies has disclosed indicative vendor quotations with a pre-tax equipment cost of Rs 10.40 crore. The company proposes to finance Rs 10 crore from net proceeds and Rs 39.67 lakh from internal accruals; goods and services tax (GST) adds Rs 1.87 crore to the quotation total of Rs 12.27 crore.

The proposed list includes 10 Ashok Leyland UE2820 6x4 RMC units quoted at Rs 4.19 crore before GST and 11 Signa 2823 RMC 7-cubic-metre Schwing trucks quoted at Rs 4.57 crore before GST. It also includes one Batching Plant M1 quoted at Rs 80 lakh before GST, alongside Rs 83.40 lakh of silos, dust-collection, conveyor, pipeline and cement-feeding equipment before GST.

Paluck Technologies says the batching-plant accessories are separately required for different plant units, despite some equipment appearing similar in the quotation list. The company also states that it will not acquire second-hand machinery, while the final model, quantity, configuration and vendor selection may be changed by management when orders are placed.

How does the proposed RMC spending compare with earlier purchases?

Paluck Technologies’ proposed pre-tax RMC programme of Rs 10.40 crore is higher than its reported equipment purchases in Financial Year 2023, Financial Year 2024 and Financial Year 2025. The company reported spending Rs 8.43 crore in Financial Year 2023, Rs 1.13 crore in Financial Year 2024 and Rs 5.7 lakh in Financial Year 2025 on assets including transit mixers, logistics trucks and diesel generator sets.

The quoted RMC programme is Rs 1.97 crore above the Rs 8.43 crore reported for Financial Year 2023, the largest of the three earlier annual amounts. The stated purpose has also become more specific: prior equipment spending was described as recurring capital expenditure for order-book requirements and growth, while the new machinery is expressly intended for the leasing segment.

Paluck Technologies reported an outstanding order book of Rs 20.89 crore as of the prospectus date, certified by its statutory auditor. That order book is cited as providing revenue visibility and requiring working-capital support, but the company does not disclose what portion relates to RMC leasing, nor does it identify customers for the proposed fleet.

When will Paluck Technologies order and deploy the equipment?

Paluck Technologies proposes to utilise up to Rs 10 crore by March 2027 by placing machinery orders with vendors. Its implementation schedule assigns the full Rs 10 crore of proposed net-proceeds funding for equipment to Financial Year 2026-27, with no specified equipment deployment in Financial Year 2027-28.

The company expects delivery approximately six months after order placement. The disclosed quotations are dated July 17, 2026 or July 18, 2026, and are valid until October 18, 2026 or October 30, 2026, but Paluck Technologies has not entered into definitive supply agreements with the quoted vendors.

No specific government approvals are required for the equipment acquisition, according to Paluck Technologies. However, equipment delivery does not by itself establish leasing income, which can arise only after the machinery is procured, delivered, installed at customer sites and put under leasing agreements.

What could change Paluck Technologies’ leasing plan or its funding?

Paluck Technologies can revise the machinery plan because the quoted models, quantities and costs are management estimates rather than definitive purchase commitments. The company says it may change vendors or alter, add or remove machinery, and may use any surplus arising during actual order placement for other required machinery.

Paluck Technologies says additional expenditure above the proposed use of net proceeds, including taxes and incidental expenses, will be funded from internal accruals. It identifies freight, installation, packaging and forwarding, exchange-rate fluctuations and customs duty as potential causes of cost escalation at the time of procurement.

The fund requirements have not been verified by the book-running lead manager or appraised by a bank or financial institution. In the event of a funding shortfall or cost overrun, Paluck Technologies may use internal accruals, seek additional debt, reallocate proceeds among stated objects in accordance with applicable law, or deploy unutilised proceeds in later financial years.

Any surplus left after meeting machinery costs may be used for general corporate purposes, subject to the stated cap of 15% of gross issue proceeds or Rs 10 crore, whichever is lower. The Rs 10 crore machinery allocation is therefore a proposed maximum use of net proceeds, while the final purchase cost and fleet composition remain subject to procurement decisions.

Conclusion

Paluck Technologies’ disclosed RMC programme is intended to build leasing operations through customer-site deployment of 21 RMC vehicles, one batching plant and associated equipment. The planned Rs 10 crore use of net proceeds finances most of a Rs 10.40 crore pre-tax quotation programme, with internal accruals proposed for the remaining equipment cost and applicable taxes.

The next disclosed milestones are machinery order placement by March 2027 and expected delivery around six months after orders are placed. The unresolved matters are whether Paluck Technologies finalises vendor agreements, retains the indicated fleet mix and meets any cost increase from internal accruals, since the current quotations have limited validity and no definitive supply contracts have been signed.