Monitoring Agency Report for the quarter ended 31st March, 2026
LLOYDSME · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
India Ratings and ACER Credit Rating submitted monitoring reports for two capital raises: a QIP of INR 1,218 Crores (July 2024) and a Preferential Issue of INR 2,722.83 Crores (September 2024). Both agencies flagged significant concerns. The QIP report revealed the 4 MTPA pellet plant project cost increased 37% from INR 1,625 Crores to INR 2,236 Crores. Both reports flagged potential violations of the placement document commitment that 'neither Promoters nor Promoter Group shall receive any proceeds directly or indirectly' - the monitoring agency found INR 196.61 Crores was indirectly transferred to promoter entity Thriveni Earthmovers through related parties. The company also invested INR 841 Crores in Inter Corporate Deposits of entities with minimal business scale (Pune IT Space Solutions had INR 63 Crores in total assets but INR 68 Crores in average daily investment). Related party payments totaling over INR 432 Crores (QIP) and INR 413 Crores (Preferential Issue) were made with incomplete documentation on scope of work.
The flagged concerns about indirect promoter benefits and related party payments raise red flags for minority shareholders and SEBI. The cost overrun and deployment of funds in questionable ICDs suggest governance and fund diversion risks that could attract regulatory scrutiny and negatively impact investor sentiment.