Kindly find the enclosed herewith the monitoring agency report issued by the CARE Rating Limited for the quarter ended on 30th June,2025
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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
CARE Ratings submitted its monitoring agency report for the quarter ended June 30, 2025, covering Last Mile Enterprises' Rs. 280.32 crore preferential issue of equity shares and warrants. The company had already utilized Rs. 234.35 crore by Q4FY25, but zero warrants were converted into equity shares in Q1FY26, halting further deployment of issue proceeds. A major red flag: the share price of Rs. 15.16 (as of August 13, 2025) is far below the warrant exercise price of Rs. 45, casting doubt on warrant convertibility. Delays were flagged in 4 of 7 stated objectives, and the company had to fund activities from its own sources because warrant money is yet to come in. Promoter holding dropped from 47.31% in March 2024 to 27.03% in June 2025 due to conversion of older 2022 warrants by non-promoters.
The wide gap between market price and warrant exercise price raises serious doubts about whether the remaining ~Rs. 46 crore from warrant conversions will ever be received, potentially stalling the company's planned investments and creating funding uncertainty. Shareholders should watch warrant conversion timelines closely, as non-conversion could dilute expected growth plans and signal weak investor confidence in the preferential issue.