AGS Transact Technologies Limited has submitted the Monitoring Agency Report for the quarter ended March 31, 2025, related to the utilization of proceeds from its preferential issue of convertible warrants.
Key details from the report by CRISIL Ratings Limited, the Monitoring Agency:
- The original issue size of warrants was approximately ₹199.99 crore, which was revised to ₹159.36 crore due to undersubscription.
- As of the quarter ended March 31, 2025, the total proceeds received from warrants subscription and conversion amounts to ₹73.42 crore.
- A significant amount of ₹85.94 crore from remaining warrant conversions is yet to be received by the company within 18 months from the allotment date.
Utilization of proceeds during the quarter ended March 31, 2025:
- Working Capital: ₹3.43 crore utilized (Total utilized till quarter end: ₹57.26 crore). Unutilized amount from received proceeds: ₹42.33 crore.
- Repayment of Secured/Unsecured Loans/Creditors: ₹2.51 crore utilized (Total utilized till quarter end: ₹16.12 crore). Unutilized amount from received proceeds: ₹3.79 crore.
- General Corporate Purposes: ₹0.00 utilized (Total utilized till quarter end: ₹0.00). Unutilized amount from received proceeds: ₹39.84 crore.
Total proceeds utilized till the end of the quarter were ₹73.38 crore, leaving ₹3.41 lakh of the received proceeds unutilized, which is held in bank accounts.
The Monitoring Agency noted unfavorable events:
- Revision of Credit Rating to ‘Default’ by Credit Rating Agencies in February 2025 due to delayed debt servicing.
- The current share price is significantly below the warrant price, which may discourage investors from converting warrants and investing the remaining amount.
The agency highlighted that these events may severely impact the company’s ability to achieve the objects of the preferential issue. The company also experienced delays in submitting required documents to the Monitoring Agency for the report.