SG Finserve Limited has submitted its quarterly monitoring agency report for the period ended December 31, 2025, to the stock exchanges on January 23, 2026. The report, mandated under Regulation 32 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, was prepared by CARE Ratings Limited as the appointed monitoring agency.

Issue Details and Fund Utilization

The monitoring report pertains to the company's preferential issue of warrants convertible into equity shares, with a total issue size of ₹450.00 crores. The issue has an 18-month period from the date of allotment for conversion.

Fund Allocation and Progress

The proceeds from the warrant issue are allocated across two primary objectives. The major portion of ₹440.00 crores is designated for meeting working capital needs, while ₹10.00 crores is earmarked for general corporate purposes.

Compliance and Monitoring Status

CARE Ratings Limited confirmed that all utilization aligns with disclosures in the offer document. The monitoring agency reported no deviations from the objects or purposes for which funds were raised during the quarter ended December 31, 2025.

Key compliance parameters assessed include:

• No material deviations from expenditures disclosed in the offer document
• No changes in means of finance for disclosed objects
• No major deviations observed from previous monitoring reports
• All utilization as per offer document disclosures

Market Price Consideration

The monitoring agency highlighted that the company's share price stood at ₹388.10 at the end of trading on January 19, 2026, which is below the issue price of ₹450.00 per share. This indicates that investors would pay a premium compared to the current market price upon warrant conversion.

Implementation Timeline

The company maintains its timeline for fund utilization, with working capital needs to be completed by April 30, 2027. No delays have been reported in the implementation of stated objects, and the monitoring agency confirmed that the company is progressing as planned.

The report was reviewed and approved by the company's Audit Committee and Board of Directors in their meeting held on January 23, 2026, before submission to the stock exchanges.

SG Finserve has announced a strategic expansion plan involving a substantial investment of ₹400 crore to establish new subsidiaries in specialized financial services sectors. The company's ambitious growth strategy focuses on diversifying its operations through targeted investments in asset reconstruction and insurance broking businesses.

Investment Strategy and Allocation

The planned ₹400 crore investment represents a significant commitment by SG Finserve to expand its presence in the financial services ecosystem. The company has identified asset reconstruction and insurance broking as key growth areas that align with its strategic objectives.

Expansion into Asset Reconstruction

The asset reconstruction segment represents one of the key focus areas for SG Finserve's expansion strategy. Asset reconstruction companies play a crucial role in the financial ecosystem by acquiring and managing non-performing assets from banks and financial institutions. This sector has gained prominence as financial institutions seek to optimize their balance sheets and improve asset quality.

Insurance Broking Operations

The second component of SG Finserve's expansion involves establishing operations in the insurance broking sector. Insurance broking services facilitate the connection between insurance providers and customers, offering intermediary services that help clients identify appropriate insurance products and manage their risk portfolios.

Strategic Implications

This diversification initiative positions SG Finserve to capitalize on opportunities across multiple segments of the financial services industry. The establishment of dedicated subsidiaries for these operations suggests a structured approach to business expansion, allowing for specialized focus and operational efficiency in each sector.

The ₹400 crore investment demonstrates the company's confidence in the growth potential of both asset reconstruction and insurance broking sectors, while also indicating its commitment to building a comprehensive financial services platform.