Monitoring Agency report for the quarter ended June 30, 2025
SURAJEST · price
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Awaiting price reaction for this filing.
CARE Ratings, acting as Monitoring Agency, confirmed that Suraj Estate Developers has fully utilized the Rs. 293.51 crore of Preferential Issue proceeds it had received by June 30, 2025, within the stipulated 12-18 month timeline with no delay in deployment. The company originally planned to raise Rs. 500 crore through the Preferential Issue but only managed Rs. 343.39 crore due to undersubscription of shares. During Q1FY26, the company used Rs. 5.60 crore for working capital needs but received Rs. 3 crore back from Jet Solar Limited following a deed cancellation, netting Rs. 2.60 crore of utilization. The cost of objects was revised downward via a Board Resolution dated June 27, 2025: land acquisition rights cut from Rs. 200 crore to Rs. 118.39 crore, working capital from Rs. 183.25 crore to Rs. 140 crore, and general corporate purposes from Rs. 114.75 crore to Rs. 85 crore. The report flagged that the share price has fallen 50.78% since the issue announcement, with the current price of Rs. 369.15 well below the warrant exercise price of Rs. 750, which could affect the viability of remaining objects. No deviation from the revised object costs was observed, though working capital usage of Rs. 94.17 crore exceeded the original Rs. 70 crore proposal but aligns with the revised plan.
For shareholders, this is a routine compliance filing showing funds are being used as disclosed, but the steep share price decline below the warrant exercise price signals weak post-issue market sentiment and may limit the company's ability to raise follow-on capital from warrant conversions.