Monitoring Agency Report for the quarter ended June 30, 2025
AURUM · price
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CARE Ratings, the Monitoring Agency, has submitted its report on Aurum PropTech's Rs. 343.56 crore Rights Issue for Q1FY26. The company has cumulatively received Rs. 334.18 crore in net proceeds (a shortfall of Rs. 4.89 crore from the expected Rs. 339.07 crore) across three calls completed in 2022, 2024, and April 2025. During the quarter, Rs. 47.10 crore was utilized, taking cumulative deployment to Rs. 250.85 crore, with Rs. 83.33 crore still unutilized and parked in debt mutual funds (Rs. 84 crore) and a bank account (Rs. 0.66 crore). Shareholders approved via postal ballot on June 7, 2025 a variation in object allocations, including adding Bonds Brain Technologies to the identified investments list and allowing repayment of past loans from issue proceeds. The company has reported net losses in each of the last four years, and all four stated objects (Product Development, Product Marketing, Identified Investments, and GCP/Inorganic Growth) are running behind their original timelines, with deadlines already extended twice via board resolutions in January 2024 and January 2025.
Repeated timeline extensions, revisions to original object allocations, and four consecutive years of net losses may concern investors about the company's execution of its Rights Issue plans. However, regulatory compliance is intact, deviations from stated objects are nil, and unutilized funds are earning returns through mutual fund investments, providing some cushion.