We are enclosing herewith the Monitoring Agency Report for the quarter ended 31st March 2025, issued by CARE Ratings Limited.
SALASAR · price
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Awaiting price reaction for this filing.
Salasar Techno Engineering has filed the Monitoring Agency Report from CARE Ratings for the quarter ended March 31, 2025, covering a Rs. 290.77 crore preferential issue (Rs. 166.67 cr equity shares + Rs. 124.10 cr convertible warrants). No fresh fund utilization happened in Jan-Mar 2025; cumulative deployment stands at Rs. 232.77 cr, with Rs. 0.03 cr idle in a Yes Bank monitoring account. The money has been spent on acquisition financing (Rs. 179.27 cr), working capital (Rs. 53.29 cr) and issue expenses (Rs. 0.21 cr), while the originally planned Rs. 25 cr CapEx head is untouched. The original issue plan of Rs. 806.04 cr was sharply scaled down to Rs. 290.77 cr. Two notable flags: the share price has been trading below the warrant exercise price, raising the risk of warrant holders letting options lapse, and the Enforcement Directorate conducted searches on April 16, 2025 at the premises of the Chairman and Joint Managing Director.
The ED action on the promoters is a clear governance overhang that can weigh on sentiment and the stock price. The risk of warrant lapse due to the low share price means the company may not collect the full Rs. 124.10 cr from warrants, which could squeeze planned capex and working capital buffers; however, promoters have stated they will exercise their portion, partially limiting the downside.