Silgo Retail confirms proper utilisation of rights issue funds

Silgo Retail Limited has informed the stock exchange about the outcome of its board meeting held on 5 May 2026. The company has also submitted the Monitoring Agency Report for the quarter ended 31 March 2026, confirming that the proceeds from its rights issue have been utilised as per the stated objectives.

The disclosure has been made in compliance with SEBI Listing Obligations and Disclosure Requirements Regulations 2015 and related provisions of SEBI ICDR regulations.

Board meeting outcome and key approval

During the board meeting, the directors reviewed and took note of the monitoring report issued by Brickwork Ratings India Private Limited, which is appointed as the monitoring agency for tracking utilisation of funds raised through the rights issue.

The board confirmed that:

• There is no deviation or variation in fund utilisation
• The proceeds are being used strictly for approved objects
• All disclosures are in line with regulatory requirements

The meeting started at 4:30 PM and concluded at 5:15 PM.

Rights issue details and fund utilisation

Silgo Retail had raised funds through a rights issue amounting to approximately ₹44.29 crore, out of which ₹22.14 crore was received during the reporting period.

The monitoring agency confirmed that:

• Funds were primarily allocated towards investment in SPV
• Issue expenses were partly utilised as per plan
• Remaining funds are under proper deployment tracking

The main investment object includes funding Hare Krishna Creative Realty Private Limited, the SPV mentioned in the offer document.

Monitoring agency report findings

Brickwork Ratings India Private Limited reviewed the utilisation of funds based on:

• Bank statements
• Chartered accountant certificates
• Company documents and invoices

The report clearly stated:

• No deviation from stated objectives
• No change in means of finance
• No adverse events impacting project viability
• Full compliance with SEBI ICDR regulations

The agency confirmed that monitoring is being conducted for the first time for this issue cycle.

Status of fund deployment

As per the monitoring report:

• Total proposed utilisation for SPV investment: ₹43.81 crore
• Amount utilised till 31 March 2026: ₹21.96 crore
• Unutilised balance remaining: ₹21.85 crore
• Issue expenses partially utilised: ₹0.19 crore

The remaining funds are being tracked for phased deployment in accordance with project requirements.

Purpose of rights issue and project focus

The rights issue proceeds are primarily directed towards:

• Investment in real estate SPV
• Issue-related expenses
• Strategic corporate expansion activities

The company continues to focus on structured capital deployment aligned with its growth plans in the jewellery and retail segment.

Importance of monitoring agency compliance

Monitoring agencies like Brickwork Ratings play a key role in ensuring transparency in fund utilisation for listed companies raising capital.

Their responsibilities include:

• Tracking end use of IPO or rights issue funds
• Verifying supporting documents and certificates
• Ensuring compliance with SEBI ICDR guidelines
• Reporting deviations if any are found

In this case, the agency confirmed complete compliance and no deviation, which strengthens investor confidence.

Regulatory significance of the disclosure

The announcement falls under Regulation 32 and related SEBI ICDR provisions, which require listed companies to disclose how funds raised from public issues are being utilised.

This ensures:

• Transparency in capital allocation
• Protection of investor interests
• Accountability of management
• Regular monitoring of corporate fund usage

Silgo Retail’s disclosure indicates adherence to these regulatory standards.

Investor impact and market relevance

For investors, such monitoring reports are important because they:

• Confirm whether funds are being used correctly
• Reduce concerns about misuse of capital
• Provide clarity on project execution status
• Improve trust in management disclosures

A clean monitoring report with no deviation is generally viewed positively by the market.

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