📌 At a Glance
Precision Metaliks Ltd has filed its Regulation 32 deviation report for the half-year ending March 31, 2025 — and guess what?
✅ No deviation
✅ No funny business
✅ Funds actually went where they were supposed to
Out of the ₹32.16 Cr raised via preferential issue on 28 March 2024, the company has used ₹12.48 Cr so far, all toward working capital and issue expenses, leaving ₹17.92 Cr parked (wisely) with an NBFC.
No Lamborghinis, no crypto startups, no one-way flights to Dubai. Just… discipline.
🏢 About the Company
| Company | Precision Metaliks Ltd |
|---|---|
| NSE Symbol | PRECISION |
| Industry | Precision Metal Fabrication (SEZ-based) |
| Registered Office | Hyderabad, Telangana |
| Factory | Visakhapatnam SEZ, Andhra Pradesh |
| CIN | L74900TG2012PLC082194 |
Precision Metaliks operates in metal fabrication for export markets and specializes in precision machining, aluminum & alloy products, primarily for automotive and industrial clients.
Not exactly glamourous — but very Make-in-India-core.
💰 The Fundraising Breakdown
| Particular | Value (₹ in Lakhs) |
|---|---|
| Total Raised | ₹3,216.00 |
| Working Capital Allocation | ₹3,041.00 |
| Issue Expenses | ₹175.00 |
| Utilized as of Mar 31, 2025 | ₹1,248.88 |
| Utilized for Issue Expenses | ₹164.11 |
| Total Utilized | ₹1,412.99 |
| Balance Unused Funds | ₹1,803.01 |
| Monitoring Agency | Not Applicable |
🧾 The unused funds have been safely parked with an NBFC pending future deployment.
🔍 Deviation? None.
🧠 Audit comments? Clean.
📋 Audit Committee observations? Nil.
Frankly, this is what governance should look like — but rarely does.
🧮 Why Does This Filing Matter?
You’d be surprised how many smallcaps raise funds and then:
- “Accidentally” start a new unrelated business
- “Temporarily” lend it to group companies
- “Strategically” buy ₹7 Cr worth of soft furnishings
But Precision Metaliks is playing it straight. That’s rare.
🧠 EduInvesting POV:
- ✅ Clean utilization = credibility with future institutional investors
- ✅ Working capital = actual business growth, not financial acrobatics
- ❓ ₹17.92 Cr unused = needs to be deployed soon or it becomes dead capital
📈 Strategic Use Case – Where Might This Money Go?
| Area | Possibility |
|---|---|
| Raw Material Purchase | Likely use in FY26 given export orientation |
| SEZ Manufacturing Boost | Additional equipment or capacity |
| Forex Management | Hedge against dollar fluctuations (common in export biz) |
| Short-Term Margin Financing | For aggressive delivery timelines on export orders |
A ₹32 Cr fundraise might seem tiny in the world of unicorns, but for a high-operating-leverage SEZ manufacturer, this can drive ₹100+ Cr topline delta with the right orders.
🧾 SEBI’s Regulation 32 – What It Means
Under SEBI’s LODR, Regulation 32 requires listed entities to disclose:
- Whether funds raised were used as stated
- Whether any deviation occurred
- If yes, why, and whether approvals were obtained
- Audit and audit committee feedback
In short — it’s a truth serum for capital raising.
🏁 Final Word
Precision Metaliks isn’t flashy. They’re not building India’s Tesla.
But they’re quietly building financial credibility — one deviation-free filing at a time.
💡 In a market filled with smallcap drama and fund misuse, this is as refreshing as a CDSL credit on a Monday morning.
Let’s hope they deploy the balance soon and that the next update includes sales expansion or new customer wins.
Tags: Precision Metaliks Preferential Issue, SEBI Regulation 32 update, NSE PRECISION, fund utilization update, no deviation filing, working capital raise, smallcap governance India, audited use of proceeds
Author: Prashant Marathe
Date: June 7, 2025
Meta Description: Precision Metaliks Ltd confirms zero deviation in ₹32.16 Cr preferential issue. Funds used for working capital, balance parked with NBFC.
