VL E-Governance & IT Solutions Limited has issued a formal response to BSE regarding inquiries about significant movement in its stock price. The company addressed the exchange's clarification request through an official communication dated February 24th, 2026.

Company's Position on Price Movement

The company stated that it is not aware of any undisclosed information or material events, including impending announcements, that could influence the price and volume behavior of its securities. Management emphasized that the recent stock price movement appears to be market-driven rather than based on any specific corporate developments.

Regulatory Compliance Status

VL E-Governance & IT Solutions confirmed its adherence to regulatory requirements in its response to BSE:

Management's Commitment

The company reiterated its commitment to maintaining transparency and corporate governance standards. Management assured stakeholders that it will continue to promptly disclose any material information in accordance with applicable laws and regulations.

The response was signed by Part Hitesh Solanki, Company Secretary with Membership No. A7890, representing the company's official position on the matter. This communication demonstrates the company's proactive approach to addressing regulatory inquiries and maintaining investor confidence through transparent communication.

VL E-Governance & IT Solutions Limited has submitted its monitoring agency report for the quarter ended December 31, 2025, under Regulation 32 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The report was prepared by Care Ratings Limited, which serves as the monitoring agency for the company's preferential issue proceedings.

Issue Details and Undersubscription Impact

The company's preferential issue faced significant undersubscription, affecting the overall fund availability and project implementation. The original issue was planned for a much larger amount but received limited investor response.

The undersubscription led to a revision in the cost allocation across various objects, which was approved through a board resolution dated March 19, 2025.

Fund Utilization During Quarter

The monitoring agency report revealed minimal fund utilization during the quarter ended December 31, 2025. The company's fund deployment showed limited activity across most project categories.

Deployment of Unutilized Proceeds

The company maintained Rs.2.70 crore in unutilized proceeds as of December 31, 2025, which were deployed in various financial instruments to generate returns while maintaining liquidity.

Market Challenges and Warrant Conversion Concerns

The monitoring agency highlighted significant concerns regarding the company's share price performance and its impact on warrant conversion prospects. As of December 31, 2025, the share price stood at Rs.19.51, which is substantially below the warrant exercise price of Rs.75.00.

Key market-related observations include:

• Share price declined 75% since the preferential issue announcement
• 90% decline from the stock's peak price
• 71.32% of subscribed warrant amount yet to be received
• Potential impact on remaining warrant conversions due to unfavorable pricing

Shareholding Pattern Changes

The preferential issue has resulted in significant changes to the company's shareholding structure. The promoter holding decreased from 33.16% before the preferential issue to 23.24% as of December 31, 2025. Post-warrant conversion, the promoter holding is expected to further decline to 15.81%.

Regulatory Compliance and Monitoring

The monitoring agency confirmed that all fund utilization during the quarter was in line with the disclosed objects in the offer document. No deviations from the stated purposes were observed, and the company maintained compliance with regulatory requirements for fund deployment and reporting.