Thangamayil Jewellery Limited announced the utilization of ₹489.44 crore from its rights issue, as monitored by CARE Ratings Limited. The announcement was made following a board meeting on August 13, 2025, where the monitoring agency's report, dated August 12, 2025, was reviewed. The rights issue aimed to raise ₹510 crore.
The funds are primarily allocated for capital expenditure towards setting up six new retail stores and for inventory in these stores. As of June 30, 2025, there has been no deviation from the intended use of the funds as outlined in the offer document.
| Item | Amount Proposed in Offer Document | Amount Utilised as of June 30, 2025 | Unutilised Amount |
|---|---|---|---|
| Capital expenditure towards setting-up of six new retail stores | 8.71 | 8.71 | - |
| Inventory required to be held in new stores | 401.03 | 380.51 | 20.52 |
| GCP | 97.67 | 97.67 | - |
| Rights issue expense | 2.59 | 2.55 | 0.04 |
| Total | 510.00 | 489.44 | 20.56 |
Utilization Details:
₹8.71 crore has been utilized for setting up new retail stores as of June 30, 2025, with ₹6.42 crore spent during the quarter, funded through internal accruals.
₹380.51 crore was utilized for inventory during the quarter. These funds were transferred from the monitoring agency account to a cash credit account and used for fixed deposits pledged against gold metal loans.
General Corporate Purpose (GCP):
The funds allocated for General Corporate Purposes (GCP) have been fully utilized as of March 31, 2025.
Unutilised Proceeds:
As of June 30, 2025, the unutilised amount from the rights issue proceeds is ₹20.56 crore. These funds are held in fixed deposits and a monitoring account, generating interest income.
| Type of Instrument | Amount Invested (₹ crore) | Maturity Date | Earning (₹ crore) | Return on Investment (%) | Market Value as at end of quarter (₹ crore) |
|---|---|---|---|---|---|
| Fixed Deposit with Yes Bank | 10.00 | 07-Jul-2025 | 0.08 | 5.80 | 10.08 |
| Fixed Deposit with HDFC Bank | 19.08 | 13-Jul-2025 | 0.12 | 6.00 | 19.20 |
| Balance in Monitoring Account | 0.16 | - | - | - | 0.16 |
| Total | 29.24 | 0.20 | 29.44 |
Project Status:
The capital expenditure for setting up new retail stores was completed as of June 30, 2025. The inventory requirement for new stores is ongoing, with ₹380.51 crore spent as of June 30, 2025.
There were no comments from the Board of Directors regarding delays in project implementation.
The company continues to adhere to the planned utilization of funds, ensuring alignment with the objectives outlined in the offer document.
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