Monitoring Agency Report for the 1st quarter ended June 30, 2025 - in relation to the Preferential issue of Equity shares and Fully Convertible warrants of Pakka Limited ( the Company )
PAKKA · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Pakka Limited filed the Q1FY26 monitoring agency report from CARE Ratings covering its Rs. 244.80 crore preferential issue (Rs. 146.88 crore equity shares + Rs. 97.92 crore convertible warrants). As of June 30, 2025, the company has raised Rs. 171.36 crore and utilized Rs. 168.60 crore, with only Rs. 2.76 crore unutilized. During the quarter, Rs. 29.01 crore went into the Jagriti Project plant and machinery (total Rs. 126.80 crore of Rs. 190 crore spent) and Rs. 17 crore was invested in wholly-owned subsidiary Pakka INC, USA for land acquisition. There is no deviation from stated objects and all funds are being used as per the shareholder resolution. However, CARE flagged that the company's share price is trading below the Rs. 204 warrant exercise price, which may cause subscribers to let warrants lapse and impact funding plans. Consolidated FY25 financials are also delayed.
Good news: funds are being deployed on schedule with no misuse. Watch out: if warrants lapse due to low share price, the company could fall short of the remaining Rs. 73 crore needed to fully fund the Jagriti Project and subsidiary plans, which is a real risk for shareholders.