Embassy Developments Limited has submitted the Monitoring Agency Report for the quarter ending December 31, 2025 (Q3FY26), prepared by CARE Ratings Limited. The report details the utilization of proceeds from the ₹3,908.14 crore Preferential Issue. Total funds realized amounted to ₹3,510.66 crore after certain warrants lapsed. The utilization across the seven stated objects is confirmed to be in line with disclosures, with a minimal unutilized balance of ₹0.29 crore as of the reporting date.
Compliance Filing for Preferential Issue
Embassy Developments Limited (EDL), formerly Equinox India Developments Limited, has submitted its compliance filing with the stock exchanges concerning the utilization of proceeds from its Preferential Issue, as required under Regulation 32 of the SEBI LODR Regulations. The monitoring report for the quarter ended December 31, 2025 was issued by CARE Ratings Limited (the Monitoring Agency).
Financial Realization vs. Issue Size
The original Preferential Issue size was approved at ₹3,908.14 crore. However, due to the non-issuance of 2,50,000 warrants to one investor, the initial issue size reduced to ₹3,908.14 crore (after accounting for the initially unissued warrants reducing the total subscription to this figure). Subsequently, 4,75,27,464 warrants lapsed because the 75% balance consideration was not received upon expiry of the conversion period. Consequently, the total funds realized by the Company amounted to ₹3,510.66 crore as of December 31, 2025 (Q3FY26).
Utilization of Proceeds by Object
The total cost of objects was revised from the initial ₹3,910.93 crore to ₹3,510.66 crore, reflecting the funds not received from lapsed warrants. This shortfall of ₹397.48 crore was adjusted against the objects pertaining to Growth initiatives and General Corporate Purposes.
Key Object Utilization Status (as of Q3FY26)
- Acquisitions (Residency, East Avenue, Eden, Blu Annex FSI Rights): All acquisitions were marked as Completed by May 2024, within the initial six-month timeline stipulated post-shareholder approval (October 2024).
- Discharge of Obligations (Sky Forest Projects Private Limited): This object was Completed by May 2024.
- Growth Initiatives (Future Assets/Projects): This object is marked as Completed in December 2025, aligning with the subscription warrant expiry (November 2026). The revised cost allocated to this object saw a reduction from ₹1,013.00 crore to ₹679.50 crore.
- General Corporate Purposes (GCP): This object remains Ongoing, with utilization up to ₹807.63 crore against a revised allocation of ₹808.16 crore.
The Monitoring Agency confirmed that the utilized proceeds align with the revised cost of objects approved by the Operations Committee, with only ₹0.29 crore remaining unutilized as of the quarter end.
Deployment of Unutilized Proceeds
The small unutilized amount of ₹0.29 crore as of the quarter end was deployed primarily in short-term instruments:
- Kotak Liquid Fund Growth: Net investment of ₹0.29 crore (after adjusting for reinvestment of capital gains). This holding shows a Market Value of ₹0.50 crore at the quarter end.
General Corporate Purpose (GCP) Utilization
The portion utilized under GCP, totaling ₹161.54 crore (based on the original offer document projection), was detailed across categories such as Debt Obligations (₹58.34 crore), Marketing expenses (₹3.63 crore), Project expenses (₹17.37 crore), Statutory dues (₹22.80 crore), and Business expansion (₹55.00 crore). The MA noted that payments were routed through inter-corporate deposits (ICDs) to subsidiaries, resulting in some co-mingling of funds, which was reconciled using CA and management certificates.
Source: BSE
