Monitoring Agency Report
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CARE Ratings, the monitoring agency, has submitted its quarterly report on the utilisation of Rs. 212.20 crore raised through a preferential issue of equity shares and convertible warrants. Out of the total, Rs. 169.79 crore has been utilised so far, with Rs. 42.41 crore still parked in bank fixed deposits and current accounts. The company has overutilised working capital funds by Rs. 12.15 crore (5.73% of issue size) deployed through its subsidiary Oriental Foundry Private Limited, which is within the 10% materiality threshold so no formal deviation is flagged. There is a delay of 124 days in deploying the second tranche of Rs. 31.69 crore (completed on July 29, 2025), and some unutilised funds were parked in the subsidiary's current account, which the monitoring agency noted is not explicitly permitted under the offer document.
The report confirms broadly compliant use of raised funds with no material deviation, but the subsidiary-level deployment and slight overutilisation in working capital are minor red flags that shareholders and the board need to review. Multiple tranches of warrants and equity have been converted, indicating promoter and investor confidence in the fundraising plan.