Refex Industries Limited submitted Monitoring Agency Reports from CARE Ratings Limited detailing the utilization of proceeds from two separate preferential issues concluded in 2024. The first issue, valued at ₹220 crores, showed deviations in utilization under ‘Investment in Subsidiaries’ and ‘Capital Expenditure’ categories during Q4 FY26. The second, larger issue of ₹905.44 crores, remains largely in progress, with a noted delay in the ‘Repayments of Loans’ object.
Monitoring Report for Preferential Issue (Annexure A)
Refex Industries Limited submitted the Monitoring Agency Report for the quarter ended December 31, 2025, concerning the preferential issue of 50,00,000 equity shares and 1,25,75,000 warrants aggregating to ₹62.50 crores and ₹157.19 crores, respectively. This report pertains to the EGM notice dated March 27, 2024.
Utilization Review and Deviations
The total initial cost of objects for this tranche was ₹220 crores. Key findings noted deviations in utilization:
- Investment in Subsidiaries (Original Cost: ₹50 Crore): Utilization of ₹17.59 crores was recorded during the quarter, fully utilizing the allocated amount by quarter-end. The subsidiary used this for vehicle loan repayment (₹11.40 crores) and salaries (₹6.19 crores).
- Capital Expenditure (Original Cost: ₹20 Crore): Utilization of ₹0.62 crores was observed during the quarter (for excavator, laptop, and office equipment). The MA noted that purchasing excavators is similar in nature to the intended purchase of Tipper Lorries.
- Working Capital (Original Cost: ₹96 Crore): ₹85.37 crores was utilized during the quarter, leaving ₹10.63 crores unutilized.
The unutilized funds of ₹45 crores from this issuance were temporarily deployed as an Intercorporate Deposit to Rudra Securities and Capital Ltd, earning 11%.
Monitoring Report for Second Preferential Issue (Annexure B)
A separate report covers the preferential issue of 81,77,068 equity shares and 1,11,70,000 warrants, aggregating to ₹382.69 crores and ₹522.75 crores, respectively, based on the EGM notice dated October 26, 2024.
Utilization Status and Implementation Timeline
The total original projected cost for objects was ₹927.81 crores, revised to ₹905.44 crores due to under-subscription. The company received 100% of subscription funds (₹382.69 crores) and 25% of warrant proceeds (₹130.68 crores).
- Repayments of Loans (Revised Cost: ₹36.63 Crore): This object was marked as Completed. However, a delay of 50 days was recorded, as the repayment (which should have been completed within three months of fund receipt, i.e., by November 07, 2024) was finalized between February 08, 2025, and March 29, 2025.
- Working Capital (Original Cost: ₹323.81 Crore): Utilization of ₹266.08 crores was recorded by the end of the quarter, with zero funds utilized during the current quarter.
- General Corporate Purpose: The report confirms No utilization towards GCP during the quarter ending December 31, 2025.
Material Events Noted
The MA noted several relevant events impacting investor decision-making, including the Income Tax Department’s search operations across group locations from December 9 to December 13, 2025. Furthermore, the company has discontinued its power trading and refrigerant gases business in Q3FY26.
Source: BSE
