Monitoring Agency Report for the Utilization of Funds for the quarter ended December 31, 2025.
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CARE Ratings has submitted its quarterly Monitoring Agency Report on EFC (I) Limited's use of funds raised via a preferential issue of equity shares to non-promoters, totaling Rs. 242.44 crore raised in December 2023 and January 2024. As of December 31, 2025, Rs. 177.56 crore has been utilized, leaving Rs. 64.88 crore unutilized, mostly parked in HDFC Bank fixed deposits earning around 7.16–7.21%. During Q3 FY26 alone, Rs. 32.79 crore was deployed, primarily Rs. 17.51 crore for subscribing to a rights issue of subsidiary EK Design Industries and Rs. 15.28 crore for working capital purposes including tax payments of another subsidiary Whitehills Interior Limited. The report flags 'No' deviation from the stated objects but notes comingling of funds as proceeds were routed through current accounts of subsidiaries alongside regular business transactions. Separately, promoter shareholding rose from 45.46% to 60.45% following a scheme of amalgamation with Whitehills Interior Limited.
For retail investors, this is a routine regulatory compliance filing with no negative findings — the monitoring agency reported zero deviation from stated objectives. However, the fact that Rs. 64.88 crore (about 27% of the total raised over two years ago) remains unutilized, and that funds were routed through subsidiary accounts with some comingling, may raise mild governance questions even though shareholders had approved the revised deployment plan. The promoter shareholding increase via amalgamation is structural and not a fresh preferential issuance.