Manappuram Finance Limited has confirmed that there are no deviations in the utilization of proceeds from its preferential issue. This assurance is provided in accordance with SEBI regulations and is supported by a Monitoring Agency Report from Crisil Ratings Limited for the quarter ended June 30, 2026. The report details the company’s adherence to the intended use of funds raised.
Manappuram Finance Confirms No Deviation in Preferential Issue Proceeds
Manappuram Finance Limited has officially confirmed that there have been no deviations in the utilization of proceeds raised through its recent preferential issue. This confirmation aligns with the requirements of Regulation 32(1) and 32(6) of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, and Regulation 162A of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.
Monitoring Agency Report Validates Fund Utilization
The company has enclosed a Monitoring Agency Report, prepared by Crisil Ratings Limited, which acts as the appointed Monitoring Agency. This report covers the quarter that concluded on June 30, 2026. The report provides an independent assessment of the utilization of the funds obtained from the preferential issue, reinforcing the company’s compliance with the stated objects of the issue.
Key Details from the Report
According to the provided documents, the total issue proceeds amounted to ₹4,384.94 crore. The funds were allocated across several key areas, including Investment in Subsidiaries, Growth Capital, Strengthening Balance Sheet, Onward Lending Purpose, and General Corporate Purposes. The report indicates that the utilization of these proceeds has been in line with the disclosures made in the Offer Document.
Specifically, for the quarter ended June 30, 2026, the total utilized amount was ₹1,219.98 crore, with ₹2,665.95 crore utilized as at the end of the quarter, leaving an unutilized amount of ₹1,718.99 crore. The majority of the funds have been directed towards onward lending and strengthening the company’s balance sheet. The report also notes that the amount utilized for general corporate purposes did not exceed 25% of the issue proceeds.
The Monitoring Agency Report further clarifies that specific items such as Capital Expenditure and General Corporate Purposes showed no revisions in their allocated costs. For ‘Strengthening Balance Sheet,’ a revised cost was noted, but it remained within the permissible limits and was duly approved by the board. The ‘Onward Lending Purpose’ saw an increase in its revised cost, also within approved parameters.
The document also details the deployment of unutilized issue proceeds, which primarily include investments in fixed deposits and balances in current accounts with various banks, yielding a return on investment between 5.55% and 6.00%.
Source: BSE
