Sunteck Realty Limited has filed its monitoring agency report for the quarter ended 31st December 2025, demonstrating compliance with regulatory requirements for its preferential issue proceeds. The report, prepared by India Ratings & Research Private Limited, provides a comprehensive overview of fund utilization and project progress.

Issue Details and Subscription Status

The company's preferential issue comprised 1,17,64,705 convertible warrants at Rs. 425 per warrant, with a total issue size of INR 499.99 crores. The warrants are convertible into equity shares with a face value of Re. 1 each.

The company received 25% of the warrant value as upfront consideration, totaling INR 125.00 crores. The remaining 75% (INR 318.75 per warrant) will be collected when warrant holders exercise conversion options within the 18-month tenure.

Fund Utilization and Object Progress

The monitoring agency report reveals that the entire received amount of INR 125.00 crores was deployed during the quarter for land acquisition activities. The funds were allocated across three primary objectives as outlined in the offer document.

A significant portion of the utilized funds (INR 96.87 crores) was deployed as reimbursement for the acquisition of 100% equity stake in an entity that owns land, aligning with the company's land acquisition objectives.

Compliance and Monitoring Assessment

The monitoring agency confirmed no deviations from the stated objects of the issue. All utilization was found to be in accordance with disclosures made in the offer document. The report indicates that no major deviations were observed compared to earlier monitoring reports.

Key Compliance Parameters:

• No deviation from disclosed objects
• Shareholder approval requirements not applicable
• No changes in means of finance for disclosed objects
• No unfavorable events affecting project viability

Implementation Timeline and Future Plans

All three objects of the issue remain on-going with no reported delays. The company has 18 months from the date of fund receipt to complete land acquisition activities and project deployment initiatives. No specific completion dates were mentioned for project deployment and general corporate purposes in the offer document.

The monitoring agency report demonstrates Sunteck Realty's systematic approach to fund deployment and regulatory compliance. With no unutilized proceeds requiring temporary deployment and clear progress on land acquisition activities, the company appears to be executing its expansion strategy as planned. The remaining warrant conversion proceeds of INR 374.99 crores will provide additional resources for completing the stated objectives over the coming months.

Sunteck Realty delivered robust financial performance in Q3 FY26, demonstrating strong operational resilience and growth momentum across key business metrics. The real estate developer reported significant improvements in profitability and revenue generation during the quarter.

Q3 FY26 Financial Performance

The company's consolidated financial results for Q3 FY26 showed strong growth trajectory with notable improvements in both profitability and operational metrics.

Nine-Month Performance Highlights

Sunteck Realty achieved exceptional performance during the first nine months of FY26, with record-breaking presales and strong financial metrics.

Business Development and Expansion

The company made significant investments in business development during the nine-month period, spending ₹623 crores compared to ₹180 crores for the full year FY25. Key acquisitions include a 1.75-acre land parcel in Andheri near Mumbai International Airport with development potential of approximately 6 lakh square feet and estimated gross development value of ₹2,500 crores.

Strong Cash Flow Management

Sunteck Realty generated robust net operating cash flow surplus of ₹349 crores in the first nine months of FY26, representing 12% growth over the same period last year. This strong cash generation enabled the company to maintain a negligible net debt-to-equity ratio of 0.07x despite aggressive business development investments.

Project Launches and Market Position

The company launched new phases including the 5th Avenue project in Goregaon West ODC and new towers in Naigaon, receiving positive market response. Management expressed confidence in achieving full-year guidance, citing strong performance across multiple projects and segments, with particular strength in the premium luxury segment driving margin expansion.