Monitoring Agency Report for the Quarter and Three Months ended June 30, 2025.
VLEGOV · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
CARE Ratings, the Monitoring Agency, submitted its report on the use of proceeds from the company's preferential issue of convertible warrants to non-promoters. The original issue size of Rs. 630 crore was undersubscribed and revised down to Rs. 400.99 crore. The company has raised Rs. 114.31 crore so far and utilized Rs. 110.70 crore, mainly Rs. 67.21 crore for repaying unsecured loans/creditors, Rs. 40 crore as security deposits toward a smart city EPC project, and Rs. 3.49 crore for general corporate purposes. About 71.32% of the subscribed warrant amount is still pending, and the share price (Rs. 49.50) is trading well below the warrant exercise price of Rs. 75, raising concerns over the viability of objects and the remaining subscription. The report also flagged a massive Rs. 2,517.03 crore net loss in FY25 due to provisions against receivables (Rs. 1,159 crore) and vendor advances (Rs. 1,327 crore), and a sharp fall in promoter holding from 33.16% to 23.24% (potentially 15.81% post-conversion).
Negative for shareholders — undersubscription, weak share price below warrant conversion price, promoter dilution, and a huge FY25 loss raise serious concerns about the company's ability to complete its stated projects and convert the remaining warrants, which could weigh further on the stock.