Suraj Estate Developers Limited (SEDL) has released its monitoring agency report for the quarter ended September 30, 2025, revealing no utilization of issue proceeds during the reporting period. The report, prepared by CARE Ratings Limited, highlights several key developments and concerns for the real estate company.

Preferential Issue and Fund Utilization

SEDL had initially planned a preferential issue to raise Rs. 500.00 crores. However, due to undersubscription, the actual amount raised was reduced to Rs. 343.39 crores. The company's board passed a resolution on June 27, 2025, to revise the cost allocation among different heads of proposed utilization.

As of September 30, 2025, the utilization of funds stands as follows:

It's noteworthy that all Rs. 293.51 crores received by June 30, 2025, had been fully utilized within the stipulated timeline of 12-18 months.

Share Price Performance

The monitoring agency report highlights a significant decline in SEDL's share price:

• The closing price was Rs. 278.05 on September 30, 2025
• This represents a 63% decline from the offer price
• It also marks a 62% decline from the 52-week high

Warrant Concerns

The current share price is substantially below the warrant exercise price of Rs. 750.00 and the balance call value of Rs. 375.00 per share. This situation may affect the viability of the stated objects and raise concerns about future fund inflows from warrant conversions.

Upcoming Investor Conference

In a separate announcement, SEDL informed that its officials will be participating in an investor conference:

• Event: G200 SUMMIT Investor Conference
• Date: Thursday, November 13, 2025
• Time: 12:00 pm onwards
• Organizer: Anand Rathi

The company stated that discussions will be based on publicly available information, and no unpublished price-sensitive information is intended to be discussed during the interactions.

Outlook

While SEDL has utilized the funds raised within the stipulated timeline, the significant share price decline and the potential impact on warrant conversions may pose challenges for the company's future plans. Investors and market observers will likely keep a close watch on the company's performance and any strategic moves to address these concerns in the coming quarters.

Suraj Estate Developers Limited has confirmed that there has been no deviation in the utilization of funds raised through its preferential issue for the quarter ended September 30, 2025. The company, which initially targeted to raise Rs 500.00 crore, successfully raised Rs 343.39 crore on October 15 and 18, 2024.

Fund Allocation and Utilization

The funds raised are being utilized for three main purposes:

Warrant Issue

As part of the preferential issue, the company also issued 13,30,000 convertible warrants at Rs 750.00 each, raising Rs 99.75 crore. However, only 50% of the total warrant amount (Rs 49.88 crore) has been received upfront, with the balance to be collected upon conversion.

Monitoring Agency

Care Rating Limited is serving as the monitoring agency for the fund utilization. According to their report, there has been no utilization of issue proceeds towards the objects during the quarter under reporting.

Market Performance

The share price of Suraj Estate Developers has seen a significant decline since the preferential issue. As of September 30, 2025, the closing stock price was Rs 278.05, which is lower than the warrant's exercise price of Rs 750.00 and the balance call value of Rs 375.00 per share. This decline might affect the viability of the objects and could potentially impact future fund-raising efforts.

Management Statement

The company's management has confirmed that there has been no deviation reported in the uses of proceeds received by the Company against the issue and allotment of equity shares and warrants on a preferential basis from the objects stated in the explanatory statement to the notice for the General meeting held on September 14, 2024.

Investors should note that while the fund utilization is on track, the significant decline in share price may have implications for the company's future capital-raising activities and the conversion of outstanding warrants.