Manappuram Finance Limited has received a clean report from its monitoring agency, CRISIL Ratings Limited, regarding the utilization of funds from its recent ₹4,384.94 crore preferential issue. The report confirms that for the quarter ended March 31, 2026, all proceeds were utilized in accordance with the offer document’s objectives, specifically for onward lending and general corporate purposes, with no deviations observed in the management of these funds.
Report Summary for Q4 FY26
The monitoring agency report, dated May 14, 2026, validates that Manappuram Finance Limited has maintained strict compliance regarding the utilization of its capital raised through a preferential issue. The total issue size of ₹4,384.94 crore consists of equity shares and convertible warrants. As of the end of the quarter, the company has demonstrated transparency in the deployment of these resources, ensuring alignment with its stated growth and operational objectives.
Utilization Breakdown
During the quarter, the company successfully utilized ₹1,445.97 crore of the raised funds. The breakdown of this expenditure includes ₹1,045.97 crore directed toward onward lending—specifically the disbursement of gold loans and MSME loans—and ₹400 crore used for general corporate purposes, which included the repayment of various high-interest bank borrowings.
Capital Management and Future Outlook
The report highlights that as of March 31, 2026, a total of ₹2,938.97 crore remains unutilized. These funds are currently held in various fixed deposits and current accounts to ensure liquidity and operational efficiency. Furthermore, the company has adjusted its internal fund allocation by ₹116.06 crore between investment in subsidiaries and onward lending, a move that remains within the permitted 10% variance limit as approved by the Board of Directors.
Warrant Conversion Status
The company has successfully secured ₹2,740.59 crore of the total issue proceeds so far. Regarding the outstanding warrants, the company expects to receive the remaining balance of approximately ₹1,644.35 crore as warrant holders exercise their conversion options. These conversions are scheduled to occur in tranches over the next 18 months from the date of allotment, providing a clear trajectory for future capital inflow.
Source: BSE
