RUSHIL: Monitoring Agency Report for the Quarter ended June 30, 2025
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CARE Ratings, the monitoring agency for Rushil Decor's Rs. 122.66 crore preferential equity warrants issue, has submitted its Q1 FY26 report. The company actually received Rs. 93.04 crore against the issue size, and has utilized Rs. 80.98 crore so far with Rs. 12.06 crore lying idle in a Bank of Baroda monitoring account and fixed deposits. Of the unutilized amount, Rs. 2.56 crore in FDs are pledged as standby letter of credit for importing laminates machinery. The Rs. 90 crore Mansa jumbo laminates project has used Rs. 68.66 crore, MDF machinery has used Rs. 8.96 crore of the Rs. 10 crore allocated, while working capital and general corporate purpose remain largely untouched. There is a Rs. 22.28 crore pending receipt from Vespera Fund Limited, stuck due to a Securities Appellate Tribunal status-quo order, and 3.3 lakh warrants worth Rs. 7.35 crore were forfeited because holders did not pay the balance 75% on time.
Shareholders should note that the company did not collect the full Rs. 122.66 crore it planned to raise, and a meaningful Rs. 22.28 crore remains tied up in litigation with VFL. To bridge the gap, Rushil has taken on additional debt from Bank of Baroda, which will raise interest costs and could squeeze margins. While the core Mansa project is on track for December 2025 completion, the funding shortfall and equity dilution uncertainty from VFL's warrants are mild near-term overhangs on the stock.