AGAsian Granito India532888Admin disclosure update

Monitoring agency report: Ahmedabad display centre yet to start, Rs. 73.8015 crore held as refundable security

ICRA's final monitoring agency report on Asian Granito's rights issue proceeds for the quarter ended 30 September 2026.

By ScoutQuest · Wed 21 Oct 2026, 5:55 PM IST · 3 min read

Net rights issue proceeds

INR 422.1746 Crore

Ahmedabad display centre amount held as refundable security deposit

73.8015 (Rs. Crore); construction yet to start as of 30 September 2026

Advance to wholly owned subsidiary for Morbi warehouse

INR 5.00 crore

ICRA Limited has issued its final Monitoring Agency report on how Asian Granito India Limited used the money raised through its 2022 rights issue. The report covers the quarter ended 30 September 2026 and was submitted to the stock exchanges on 21 October 2026.

What the report says about the money

• Net proceeds of the rights issue were INR 422.1746 Crore, after issue-related expenses.
• Capital expenditure for the new manufacturing units: 173.3727 (Rs. Crore) for Future Ceramic Private Limited and 45.2553 (Rs. Crore) for AGL Sanitaryware Private Limited, both shown as fully used.
• General corporate purposes: 94.7451 (Rs. Crore), also shown as fully used. The working capital head is likewise shown as fully used.
• The agency records no material deviation from the objects of the issue: utilisation is different from the original offer document but in line with the change of objects approved by a shareholders' resolution.

The delayed object, Ahmedabad display centre

• The object 'Setting up of Display Centre cum office at Ahmedabad, Gujarat' is costed at 73.8015 (Rs. Crore). The full amount is shown as used, but it is held as a refundable security deposit with an EPC contractor for land identification.
• The report traces the history: an advance of INR 55.000 crore was first paid to an EPC contractor; that agreement was cancelled in Q3FY24. The contract and an advance deposit of INR 69.000 crore were then transferred to another developer in Q3FY24, but that arrangement was terminated in Q4FY25. A new agreement was signed with a different vendor in Q4FY25.
• Money held with the former vendor is being recovered in tranches and redirected to the new contractor.
• The agency notes there has been no material progress in completing this object, and implementation had not commenced as of 30 September 2026.

Stock point for trading business

• The company has an agreement with a wholly owned subsidiary to set up a stock point for trading in various building and construction materials.
• An advance of INR 5.00 crore was transferred to the subsidiary during Q1FY27.
• The subsidiary will build a warehouse at its Morbi premises and hand over possession by May 2029; the advance will be adjusted against lease rentals payable over the lease term. Construction of the warehouse is under progress as of 30 September 2026.

Other checks recorded in the report

• Shareholder approval has been obtained for the alteration in objects.
• The means of finance for the objects has not changed.
• No major deviation observed over earlier monitoring agency reports.
• Government and statutory approvals for starting commercial production are in place for the greenfield projects at Future Ceramic Private Limited and AGL Sanitaryware Private Limited.
• The agency's answer on whether unfavourable events affect the viability of the objects is 'No', with a cross-reference to the note on the Ahmedabad display centre.
• The report states it is not a commentary on the quality of the objects or on the reasonableness of costs, and that the agency does not audit the information it receives.

How to read this

The report is a periodic check that money raised from shareholders went where it was promised. The capital expenditure, working capital and general corporate purposes heads are shown as fully spent. The object that stands out is the Ahmedabad display centre and office: repeated changes of contractor and the security deposit route mean the asset itself is not yet built, even though the allotted amount is shown as used. ICRA describes this as its final monitoring agency report.

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