Ethos Limited has released the Monitoring Agency report for the quarter ended March 31, 2026. The report confirms that the company is prudently managing the gross proceeds of ₹40,990.50 lakh raised via its Rights Issue. While the majority of funds remain unutilized, the company has begun tracking expenses and deploying surplus capital into interest-bearing instruments to ensure optimal liquidity management as the company progresses with its strategic business expansion and inventory requirements.
Utilization of Rights Issue Proceeds
As of the quarter ended March 31, 2026, the total gross proceeds from the Rights Issue stood at ₹40,990.50 lakh. The company has utilized ₹10,978.97 lakh to date, leaving an unutilized balance of ₹30,011.53 lakh. The utilization has primarily been directed toward issue-related expenses, with a nominal amount spent on bank charges associated with the monitoring accounts.
Strategic Deployment of Surplus Funds
The remaining unutilized proceeds have been strategically deployed into 12 fixed deposits with HDFC Bank. These investments provide an interest rate of 6.15%, with maturity dates set for July 8, 2026. This approach reflects the company’s focus on capital preservation and earning returns while awaiting the scheduled deployment of funds for working capital and general corporate purposes.
Future Outlook and Implementation
The company noted that the current pace of utilization for working capital—specifically for inventory procurement and new store openings—has been impacted by a slight delay in store expansion timelines. Management has confirmed that these funds will be deployed in subsequent quarters in alignment with the original objectives outlined in the offer document. The Board remains committed to its growth strategy, utilizing the proceeds to support inventory expansion for its luxury watch boutiques and broader business operations.
Source: BSE
