Rexpro factory object remains 18 months behind schedule

Rexpro Enterprises Limited reported that its equipment purchase and factory-renovation object was delayed by 18 months and continuing as at September 30, 2026, with Rs 13.81 crore unutilised from its Rs 25 crore allocation. Rexpro had deployed Rs 11.19 crore on the object, including Rs 53.95 lakh during the reported quarter.

How much of Rexpro’s IPO proceeds remain unutilised?

Rexpro had Rs 17.33 crore of unutilised gross initial public offering, or IPO, proceeds at September 30, 2026. The monitoring annexure showed total utilisation of Rs 29.80 crore from gross fresh-issue proceeds of Rs 47.13 crore raised in financial year 2024-25.

The equipment and factory-renovation object represented Rs 13.81 crore of the unutilised total, while the Rs 3.52 crore allocation for pursuing inorganic growth remained fully unspent. These two objects account for the entire Rs 17.33 crore outstanding balance disclosed in the progress schedule.

Rexpro’s factory object had used about 45% of its Rs 25 crore allocation by September 30, 2026. Its cumulative spending increased from Rs 10.65 crore at the beginning of the quarter to Rs 11.19 crore at the end, a Rs 53.95 lakh addition.

Why is Rexpro’s factory object 18 months late?

Rexpro’s monitoring annexure records an 18-month delay that was continuing for the equipment purchase and factory-renovation object, but it gives no reason for the delay. The offer document set March 31, 2025 as the completion date, while the annexure lists September 30, 2026 in its actual-completion-date column.

The object was not complete at the September 30, 2026 reporting date because Rs 13.81 crore remained unutilised. The filing does not disclose a revised completion date, a revised cost, or a schedule for using the outstanding allocation.

Rexpro also reported a six-month continuing delay for the Rs 3.52 crore inorganic-growth object. No amount was utilised for that object either at the start or end of the September 2026 quarter, and the filing does not identify an acquisition target, transaction or deployment timetable.

What did Rexpro spend during the September 2026 quarter?

Rexpro reported IPO-proceeds utilisation of Rs 53.95 lakh during the quarter ended September 30, 2026, and attributed all of it to equipment purchase and factory renovation. Total IPO utilisation rose from Rs 29.26 crore at the quarter’s beginning to Rs 29.80 crore at quarter-end.

Rexpro reported no quarterly spending on working capital, inorganic growth, general corporate expenses or fresh issue expenses. Working capital had already used its full Rs 10 crore allocation, while general corporate expenses and fresh issue expenses had previously used Rs 5.84 crore and Rs 2.77 crore, respectively.

The quarter’s only disclosed use of IPO proceeds therefore went to the factory object that remained 18 months behind schedule. The Rs 53.95 lakh deployed during the quarter was substantially below the Rs 13.81 crore still unutilised for equipment purchase and factory renovation.

Where has Rexpro placed unutilised IPO money?

Rexpro’s deployment schedule lists four fixed deposits with The Cosmos ICo-op Bank Ltd, each valued at Rs 5 crore and each maturing on July 7, 2027. The deposits carried a disclosed return on investment of 7.50%, and each had a market value of Rs 5 crore at the end of the quarter.

Each listed deposit had earned Rs 18.63 lakh, according to the annexure. The schedule identifies fixed deposits as the instrument used for deployment pending utilisation and does not list another investment type.

The four deposits total Rs 20 crore, compared with Rs 17.33 crore of total unutilised IPO proceeds in the progress schedule at September 30, 2026. The filing does not reconcile the Rs 2.67 crore difference between the fixed-deposit total and the reported unutilised-proceeds balance.

The monitoring certificate, dated October 23, 2026, states that utilisation details were checked against Rexpro’s unaudited books and relevant records as at September 30, 2026. It says use of gross proceeds was in line with the offer-document objects, but does not explain the difference between the two disclosed totals.

Which Rexpro IPO objects have been completed?

Rexpro had fully utilised three of its five fresh-issue objects by September 30, 2026: Rs 10 crore for working capital, Rs 5.84 crore for general corporate expenses and Rs 2.77 crore for fresh issue expenses. Together, these completed uses amounted to Rs 18.61 crore.

The two unfinished objects were both reported as delayed. The factory object had Rs 13.81 crore pending after an 18-month continuing delay, while the Rs 3.52 crore inorganic-growth object was fully pending after a six-month continuing delay.

The cost schedule lists original costs of Rs 25 crore for the factory object and Rs 3.52 crore for inorganic growth. Its revised-cost column shows zero for every object, and Rexpro did not provide a narrative disclosure of a changed budget or revised completion plan.

Rexpro operates in one business segment, furniture manufacturing, and one geographical segment, India. Its half-year results notes therefore do not provide segment data that could isolate the financial impact of equipment purchases, factory renovation or a future inorganic-growth transaction.

Conclusion

Rexpro had completed deployment for working capital, general corporate expenses and fresh issue expenses by September 30, 2026, but not for its two growth-related objects. The factory object had used Rs 11.19 crore of Rs 25 crore and was 18 months delayed, while the Rs 3.52 crore inorganic-growth allocation remained wholly unutilised and six months delayed.

The next points to watch are Rexpro’s continuing implementation of the two delayed objects, any disclosed revised completion plan, and the July 7, 2027 maturity of the four listed fixed deposits. Later disclosures may also address the unreconciled difference between Rs 20 crore of listed deposits and Rs 17.33 crore of unutilised IPO proceeds.