Last Mile Enterprises Limited has reported a significant funding shortfall in its preferential issue program, with warrant holders failing to exercise conversion options worth ₹45.92 crore by the November 2025 maturity deadline. The development has created implementation delays across multiple business objectives, according to the latest monitoring agency report.

Fund Utilization Overview

CARE Ratings Limited, serving as the monitoring agency, reported that the company achieved only partial success in its ₹280.32 crore preferential issue program for the quarter ended December 31, 2025. The actual funds raised totaled ₹234.40 crore, representing a 16% shortfall from the originally planned amount.

The warrant issue component, valued at ₹61.29 crore, saw minimal conversion with only ₹5.39 lakh received from warrant holders. The warrants carried an issue price of ₹600.00 per warrant, comprising a subscription price of ₹150.00 and exercise price of ₹450.00.

Project Implementation Status

Despite the funding constraints, the company has fully utilized all received funds and invested additional amounts from internal sources. The monitoring report reveals that total utilization reached ₹254.15 crore, exceeding the raised amount through company's own funding sources.

Implementation Challenges

Four out of seven stated objectives experienced delays due to the funding shortfall. The company was unable to complete investments in NCDs or loans to NBFCs for acquiring stressed assets, subsidiary company growth investments, working capital requirements, and strategic acquisitions within the specified timelines.

The monitoring agency noted comingling of funds in the monitoring account, with numerous debit and credit transactions beyond issue proceeds. This required reliance on management declarations and chartered accountant certificates for verification purposes.

Market Impact and Shareholding Changes

The report highlighted significant changes in the company's shareholding structure, with promoter holding decreasing from 47.31% as of March 31, 2024, to 25.16% as of December 31, 2025. The current share price of ₹6.24 as of February 09, 2026, remained substantially lower than the warrant issue price of ₹60.00.

Company Response

Management indicated that the reduced fund receipt would proportionally decrease the scope of affected objectives. The company emphasized that all available funds have been fully deployed and that additional investments from internal sources demonstrate commitment to project completion despite external funding challenges.

The monitoring agency confirmed no material deviations from disclosed objects, though the means of finance for incomplete objectives may require adjustment due to the funding gap. The company stated it expects good returns from already invested amounts in the coming months.

Last Mile Enterprises Limited (formerly Trans Financial Resources Limited) held a board meeting on February 14, 2026, at its registered office to deliberate on key business decisions and approve quarterly financial results. The meeting, which commenced at 6:30 PM IST and concluded at 7:30 PM IST, addressed multiple strategic initiatives aimed at business expansion and employee welfare.

Q3FY26 Financial Results Approval

The board approved the company's standalone and consolidated unaudited financial results for the quarter ended December 31, 2025. Along with the financial results, the board also approved the Limited Review Report issued by the company's statutory auditor and the Statement of Deviation/Variation Report as required under Regulation 32 of SEBI (LODR) Regulations, 2015.

Strategic Entry into Hydrogen Energy Sector

The board approved a significant business expansion into the clean energy sector through its subsidiary Last Mile Energy Private Limited. The company will subscribe to 76% of the paid-up share capital of this subsidiary, which will focus on designing, manufacturing, and commercializing hydrogen-based products for both household and commercial applications.

This venture aligns with the company's strategic expansion into sustainable energy solutions and is expected to create long-term growth opportunities in the clean energy adoption space through hydrogen and hydrogen-blended fuels.

Employee Housing Loan Scheme

The board approved a comprehensive housing loan scheme for eligible senior employees and Key Managerial Personnel (KMPs), subject to shareholder approval. This initiative demonstrates the company's commitment to employee welfare and retention.

US Market Expansion Through Joint Venture

The board approved in principle the exploration of a joint venture with Mangalam LLC, a Limited Liability Company incorporated in the United States, for manufacturing, distribution, and marketing of consumer electronics products. This strategic partnership aims to establish a strong presence in the US consumer electronics market.

Mangalam LLC is described as a significant importer from China for consumer electronics and maintains an extensive distribution network across multiple US locations. The proposed venture is expected to provide revenue diversification, access to the US market, and operational synergies.

Postal Ballot and Regulatory Compliance

The board appointed M/s. A. Shah & Associates, Practicing Company Secretaries, as scrutinizers to conduct the postal ballot process. The company will issue a notice for postal ballot and e-voting pursuant to Section 108 and 110 of the Companies Act, 2013, to consider various transactions requiring shareholder approval. The postal ballot notice will be shared in due course by the company.