Aurum PropTech Limited has encountered regulatory compliance issues regarding the deployment of its Rights Issue proceeds, according to the latest monitoring agency report for the quarter ended December 31, 2025. CARE Ratings Limited, serving as the appointed monitoring agency, has identified deviations from SEBI guidelines in the company's fund management practices.

SEBI Compliance Deviation Identified

The primary concern raised by CARE Ratings relates to the improper deployment of unutilized Rights Issue proceeds. As per SEBI (ICDR) Regulations, companies must park unutilized proceeds from Rights Issues only with scheduled commercial banks. However, as on December 31, 2025, Aurum PropTech had deployed Rs.57.56 crore in debt mutual fund schemes, which directly contravenes SEBI guidelines.

The monitoring agency noted that the Rights Issue Committee had approved investment of unutilized proceeds in fixed deposits and mutual funds through a board resolution dated March 05, 2024. Following the monitoring agency's observations, the company deployed the entire unutilized amount with scheduled commercial banks on January 23, 2026.

Rights Issue Progress and Utilization

The company's Rights Issue, originally sized at Rs.343.56 crore, has progressed through multiple phases including subscription, first call, and final call periods. The total net proceeds received stand at Rs.337.16 crore, with Rs.1.91 crore still pending from shareholders.

During the quarter ended December 31, 2025, the company utilized Rs.13.16 crore towards various stated objects, bringing the cumulative utilization to Rs.280.95 crore.

Object-wise Fund Deployment

The company has revised its original fund deployment plan through special resolutions, adjusting allocations across different business objectives:

The identified investments category saw the highest utilization during the quarter, with Rs.11.96 crore deployed in the form of loans to various entities including YieldWiseX Technologies Private Limited, NestAway Technologies Private Limited, Hello World Technologies Private Limited, and Monk Tech Ventures Private Limited.

Timeline Delays and Revisions

The monitoring agency noted that the company has exceeded its initial timelines for fund utilization as outlined in the Letter of Offer. However, these timelines have been revised through board resolutions dated January 18, 2024, and January 20, 2025. The latest revision extends the deployment schedule to fiscal years 2025-2026 and 2026-2027, citing changes in business operational needs.

Financial Performance Context

CARE Ratings highlighted that the company has incurred net losses over the last four years ended March 31, 2025, with losses continuing in the first half of FY26. This financial performance context adds significance to the proper deployment and monitoring of the Rights Issue proceeds.

The deviation range has been classified as 10-25% by the monitoring agency, reflecting the materiality of the compliance issue. The company's management has taken corrective action by moving the funds to scheduled commercial banks following the monitoring agency's observations.

Aurum PropTech Limited has announced the grant of 90,000 stock options to eligible employees under its Employee Stock Option Plan 2021. The company's Nomination and Remuneration Committee approved this grant during its meeting held on January 31, 2026, as part of the company's employee incentive program.

Stock Option Grant Details

The comprehensive details of the stock option grant demonstrate the company's structured approach to employee compensation:

Vesting and Exercise Framework

The stock options operate under a clearly defined timeline structure. All granted options will vest within a maximum period of one year from the date of grant. Once vested, employees will have three years from the respective vesting date to exercise their options, though the committee reserves the right to set shorter periods as deemed appropriate.

Regulatory Compliance and Administration

The grant complies with SEBI regulations and is administered by the Nomination and Remuneration Committee or Board of Directors. The committee oversees compensation matters for executive directors, key managerial personnel, and eligible employees under the ESOP 2021 framework. The options are granted based on eligibility criteria specified in the scheme, ensuring a structured and fair distribution process.

Share Allocation Impact

Upon exercise of the vested options, a total of 90,000 equity shares of face value Rs. 5 each will be issued to the option holders. The exercise will require payment of the predetermined exercise price of Rs. 80 per share along with applicable taxes, in accordance with the scheme's terms and conditions. The company will provide details of money realized from option exercises when employees actually exercise their rights.

Employee Incentive Strategy

This stock option grant represents Aurum PropTech's commitment to employee retention and motivation through equity participation. The ESOP 2021 framework allows eligible employees to become stakeholders in the company's growth, aligning their interests with long-term corporate performance. The structured vesting and exercise periods provide employees with flexibility while ensuring sustained engagement with the organization.