Report of Monitoring Agency U/R 16 of SEBI (LODR) Regulations,2015 with regard to utilization of proceeds of Rights Issue.
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CARE Ratings, the Monitoring Agency, has submitted its first report on the utilization of proceeds from Thangamayil Jewellery's Rs. 510 crore Rights Issue (held Feb 21 – Mar 4, 2025). Of this, Rs. 178.50 crore came from promoters as unsecured loans later converted into equity, while Rs. 331.50 crore was raised through the allotment account. As of March 31, 2025, the company has utilized Rs. 382.96 crore (75% of proceeds) and Rs. 127.04 crore remains unutilized, parked in fixed deposits with Federal Bank, Yes Bank, and HDFC Bank yielding 5.75%–7.85%, plus balance in the monitoring account. Funds were deployed towards inventory for new stores (Rs. 280.51 cr used), general corporate purposes/working capital (Rs. 97.67 cr), capex for six new retail stores (Rs. 2.29 cr), and issue expenses (Rs. 2.49 cr). The Monitoring Agency confirmed no deviation from the stated objects and no change in means of finance.
This is a routine compliance filing confirming that the rights issue funds are being deployed as planned. No negative flags for shareholders — utilization is on track, proceeds are safely parked in fixed deposits earning reasonable returns, and there is no deviation from the original purpose. Investors should note that store expansion and inventory build-out are still in progress, with the project timeline running through FY26.