Monitoring Agency Care ratings limited dated 14/08/2025 for the quarter ended June 30, 2025 with respect to the utilization of proceeds from Rights Issue II of the Company.
JYOTISTRUC · price
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Jyoti Structures Limited has submitted the Monitoring Agency (MA) report from CARE Ratings Limited for the quarter ended June 30, 2025, covering its Rights Issue of equity shares that raised Rs. 459.69 crore (92.11% subscribed, against a target of Rs. 499.09 crore) during February–March 2025. As of June 30, 2025, the company has utilized Rs. 297.15 crore of the proceeds, leaving Rs. 162.54 crore unutilized and parked in HDFC Bank fixed deposits (Rs. 161.29 crore) and a monitoring account (Rs. 1.25 crore). The MA confirmed no deviation from the stated objects of the issue and no delay versus the March 31, 2026 completion timeline. However, the MA flagged that the company moved issue proceeds from the monitoring account to a regular current account, causing 'comingling of funds', and that board approval was not received for Rs. 34.92 crore out of Rs. 39.04 crore used under General Corporate Purposes (though these were listed as permitted GCP uses). The company has Nil promoter holding and the share price has fallen around 20% over the trailing 12 months as of June 30, 2025.
For shareholders, the report shows the company is deploying rights-issue funds largely on schedule and within stated objects, but the comingling of proceeds and missing board approvals for significant GCP spending (~Rs. 35 crore) point to weak governance and disclosure discipline. The 92% subscription, ~20% share price decline, and zero promoter holding are additional risk factors that may weigh on the stock.