: Submission of the report of Monitoring Agency pursuant to Regulation 32(6) for the Quarter ended 31st March, 2026 as per SEBI (LODR) Regulations, 2015.
KRITI · price
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CARE Ratings Limited, as monitoring agency, submitted its quarterly report for the preferential share warrants issue of Kriti Industries (India) Limited. The original issue was sized at Rs.149.96 crore, but only Rs.74.25 crore was received after warrant holders of 63,69,000 warrants failed to exercise their conversion option within the stipulated 18-month period ending January 26, 2026. As a result, the warrants lapsed and were cancelled with no equity shares allotted. The Board revised the overall objective downwards to Rs.74.25 crore in its February 2026 meeting. The revised utilization plan allocates Rs.40 crore to working capital (completed in Q4FY25), Rs.34.25 crore to pipe manufacturing capex, and Rs.0 to general corporate purposes. All Rs.74.25 crore has been fully deployed with no idle funds remaining. The monitoring agency noted that if the company takes on debt to bridge the Rs.75.71 crore shortfall, its interest burden may increase and the full capex benefits may not materialize.
The failure of warrant holders to convert has halved the planned capital raise, reducing funds available for expansion. The company has scaled back its capex plans significantly, which could limit growth capacity. Shareholders should monitor whether the company takes on debt to fund any shortfall, as this may increase financial leverage and interest costs.