Centrum Capital Limited has submitted monitoring agency reports for the quarter ended September 30, 2025, detailing the utilization of funds raised through two recent preferential issues. The reports, prepared by Brickwork Ratings, confirm that the company has adhered to its stated objectives without any deviations.

Fund Raising Details

The company raised funds through two separate preferential issues:

1. Warrant Issue: Rs 199.99 crore (with Rs 49.99 crore received as 25% upfront payment)
2. Equity Shares Issue: Rs 149.71 crore (fully subscribed from proposed Rs 172.56 crore)

Fund Utilization

The funds were primarily used for the following purposes:

1. Debt Repayment: Funds were allocated for repaying debts at both the company and subsidiary levels.
2. General Corporate Purposes: This included providing a Rs 35 crore loan to group company Centrum Broking Limited for margin money payments to stock exchanges.

Breakdown of Fund Utilization

*Represents the portion of issue proceeds not yet received as of September 30, 2025.

Key Observations

1. No Deviations: The monitoring agency reported no deviations from the stated objectives, confirming that all funds were deployed as per the offer documents.
2. Intra-group Transactions: A significant portion of the debt repayment was used for intra-group borrowings:
   • Rs 69.00 crore out of Rs 69.41 crore for company debt repayment
   • Rs 39.37 crore out of Rs 45.11 crore for subsidiary debt repayment
3. Timely Utilization: The equity issue funds were fully utilized within the quarter ended September 30, 2025.

Compliance and Transparency

Centrum Capital's submission of these monitoring reports demonstrates its commitment to regulatory compliance and transparency. The reports were prepared in accordance with SEBI (ICDR) Regulations, 2018, and were reviewed by the company's Audit Committee and Board of Directors before submission.

The timely and appropriate utilization of funds, as confirmed by the independent monitoring agency, suggests that Centrum Capital is executing its financial strategy as planned. This may potentially strengthen investor confidence in the company's financial management and corporate governance practices.

Centrum Capital Limited , a diversified financial services group, has reported its financial results for the quarter ended September 30, 2025, along with significant corporate developments. The company faced challenges in its financial performance but made strides in capital raising and business expansion.

Financial Performance

Centrum Capital reported a consolidated net loss for Q2 FY26, marking a significant shift from its profit position in the same quarter last year. Here's a breakdown of the key financial metrics:

The company experienced a substantial decrease in its total revenue from operations, which could have contributed to the reported net loss.

Capital Raising Initiatives

Despite the challenging financial results, Centrum Capital successfully raised approximately ₹200 crores through various equity infusion methods:

1. Promoter Warrants Allotment:

   • Allotted 7.01 crore warrants to promoter entity JBCG Advisory Services
   • Price: ₹28.52 per warrant
   • Total amount raised: ₹5,000.00 lakhs

2. Equity Shares to Marquee Investors:

   • Allotted 4.35 crore equity shares to marquee investors
   • Price: ₹34.38 per share
   • Total amount raised: ₹14,971.27 lakhs

These capital raising initiatives, completed in August 2025, demonstrate the company's ability to attract investments despite the current financial performance.

Business Updates

Centrum Capital has also announced several strategic moves and operational updates:

1. Divestment Plans: The company has agreed to sell its stake in Centrum Housing Finance Limited to Weaver Services Private Limited, subject to regulatory approvals.

2. Unity Bank Expansion:

   • Increased branch network to 295 across India
   • Introduced new products including credit cards and personal loans

3. Wealth Management Business:

   • Assets Under Management (AUM): Over ₹41,000 crores
   • Client base: 5,000+ clients
   • Geographical presence: 18 locations

These updates indicate that Centrum Capital is actively working on restructuring its business portfolio while expanding its banking and wealth management operations.

The company's ability to raise significant capital and expand its banking operations, despite the reported loss, suggests a strategic focus on long-term growth and business transformation. Investors and market watchers will likely keep a close eye on how these initiatives impact the company's financial performance in the coming quarters.