Monitoring Agency Report issued by Care Rating Limited for the utilization of funds raised through preferential issue for M/S Last Mile Enterprises Limited for the quarter ended on 31st March,2025
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CARE Ratings has submitted its quarterly Monitoring Agency Report for Last Mile Enterprises covering the use of funds raised through a preferential issue of Rs.280.32 crore (equity shares and warrants). Of this, Rs.234.35 crore was actually raised and has been fully utilized across 7 stated objectives (NCD/NBFC investment, subsidiaries, real estate, working capital, general corporate purpose, strategic acquisitions, and issue expenses). The remaining Rs.45.97 crore is pending receipt from warrant conversions, which caused delays in 3 of the 7 objectives. The company also redeemed T-Bills worth Rs.4 crore in its own account rather than the Monitoring Agency account, leading to comingling of funds that the agency could only verify via management declarations and a CA certificate. Promoter shareholding dropped sharply from 47.31% in March 2024 to 27.03% in March 2025 due to warrant conversions by non-promoters in April 2022.
No deviation from stated objects was reported, but red flags include delayed implementation on three objectives, comingling of issue proceeds in the company's own account, and the share price trading significantly below the warrant exercise price of Rs.600 — which could deter further warrant conversions and leave Rs.45.97 crore of planned funding stranded. The sharp fall in promoter holding is also worth tracking.