Presstonic Engineering deploys Rs 26.37 crore rights proceeds

Presstonic Engineering Limited reported deploying Rs 26.37 crore of rights-issue proceeds by 30 September 2026, with Rs 16.02 crore directed to working-capital requirements. GRSM & Associates certified that the utilisation statement fairly presented the use of proceeds and was aligned, in all material respects, with the rights issue’s stated objects.

How did Presstonic Engineering use its rights-issue proceeds?

Presstonic Engineering reported utilisation of Rs 26.37 crore by 30 September 2026 across repayment or prepayment of borrowings, working-capital requirements, general corporate purposes and issue-related expenses. The utilisation annexure identifies Rs 16.02 crore for working capital, making it the largest reported allocation among the four stated objects.

The annexure reports Rs 2.97 crore for repayment or prepayment of borrowings and Rs 6.50 crore for general corporate purposes. It also records Rs 8.17 lakh for issue-related expenses in the utilisation line. The reported total actual utilisation was Rs 26.37 crore as at 30 September 2026.

The statement therefore shows working capital as the central intended and reported use of the rights issue, rather than borrowing repayment. The Rs 16.02 crore working-capital utilisation was more than five times the Rs 2.97 crore assigned to repayment or prepayment of borrowings, based on the amounts shown in the annexure.

How did actual rights proceeds compare with the prospectus plan?

Presstonic Engineering’s annexure reported Rs 26.37 crore of actual utilisation through 30 September 2026, compared with a Rs 26.98 crore total allocation shown in the prospectus. The difference between those reported totals was Rs 60.86 lakh, while the company did not provide an explanation for the difference in the supplied statement.

Borrowing repayment or prepayment was unchanged at Rs 2.97 crore in both the prospectus and utilisation figures. Working-capital utilisation was Rs 16.02 crore against Rs 16.09 crore in the prospectus, a difference of Rs 6.33 lakh. General corporate purposes were shown at Rs 6.50 crore in utilisation against Rs 6.70 crore in the prospectus.

The annexure also presents an “actual amount received” line and an “amount receivable towards issue of equity shares” line, but the supplied document’s extraction does not clearly preserve their table labels and figures. The independent practitioner’s conclusion instead specifically addresses the statement of utilisation up to 30 September 2026, and the reported total on that line was Rs 26.37 crore.

What did GRSM & Associates certify about the proceeds?

GRSM & Associates concluded that Presstonic Engineering’s utilisation statement fairly presented, in all material respects, rights-issue proceeds used up to 30 September 2026 and that the utilisation conformed to the objects in the offer document. The certificate was dated 2 November 2026 and followed an engagement letter dated 30 October 2026.

The practitioner said it verified the amount raised against the offer document, the basis of allotment, bank statements and other relevant records. Its procedures also included checking utilisation against invoices, contracts, payment proofs and bank statements, alongside obtaining management representations about the completeness and accuracy of the statement.

The certificate was issued for the board and for submission to stock exchanges, regulators or a monitoring agency where applicable. It does not provide an audit opinion on Presstonic Engineering’s full financial statements, and its stated conclusion is limited to utilisation of the rights-issue proceeds through 30 September 2026.

What changed in Presstonic Engineering’s borrowings after March?

Presstonic Engineering’s long-term borrowings declined to Rs 7.55 crore at 30 September 2026 from Rs 8.02 crore at 31 March 2026. This movement occurred in the same six-month period in which the company reported Rs 2.97 crore of rights-issue utilisation for repayment or prepayment of borrowings, although the filing does not attribute the entire change in long-term debt to the issue proceeds.

Short-term borrowings moved in the opposite direction, rising to Rs 22.17 crore at 30 September 2026 from Rs 8.90 crore at 31 March 2026. As a result, the reduction in long-term borrowings does not indicate a reduction in all borrowings, because the source reports a substantial increase in short-term borrowings over the same period.

Trade receivables rose to Rs 32.11 crore from Rs 9.82 crore, while inventories increased to Rs 15.47 crore from Rs 14.91 crore between 31 March and 30 September 2026. These movements provide context for the Rs 16.02 crore working-capital utilisation, but the certificate does not link individual balance-sheet changes to particular payments from the rights issue.

What does the half-year cash flow show alongside the deployment?

Presstonic Engineering reported net cash used in operating activities of Rs 8.25 crore for the half year ended 30 September 2026, compared with net cash generated from operating activities of Rs 2.75 crore in the half year ended 30 September 2025. The company’s cash flow statement recorded an increase in trade receivables, loans and advances as a major working-capital movement in the 2026 half year.

Net cash used in investing activities was Rs 9.69 crore in the half year ended 30 September 2026, compared with Rs 2.58 crore used in the corresponding 2025 period. The statement reported purchases of property, plant and equipment, intangible assets and work in progress, as well as advances for capital items and investment in term deposits, within investing cash flows.

Net cash generated from financing activities was Rs 11.07 crore in the 2026 half year, compared with Rs 1.88 crore in the prior-year period. Cash and bank balances were Rs 1.76 crore at 30 September 2026, down from Rs 8.63 crore at 31 March 2026, while the cash-flow statement notes that cash equivalents exclude Rs 1.52 crore held as margin money or security against borrowings and guarantees.

Conclusion

Presstonic Engineering reported that it had deployed Rs 26.37 crore of rights-issue proceeds by 30 September 2026, principally toward Rs 16.02 crore of working-capital requirements. The independent practitioner’s certificate concluded that the utilisation was fairly presented in all material respects and was consistent with the stated objects of the issue.

The next reported indicators to watch are working-capital and borrowing movements after 30 September 2026. Trade receivables stood at Rs 32.11 crore and short-term borrowings at Rs 22.17 crore on that date, while the utilisation certificate reports proceeds deployed through September and does not disclose a further rights-issue allocation schedule.