Jyoti Structures513250Rights offering notice

Monitoring agency report: ₹23.49 crore of rights issue proceeds unutilised, fund-use timeline extended

CARE Ratings' monitoring agency report on the Rights Issue II of Jyoti Structures for the quarter ended September 30, 2026.

By ScoutQuest · Tue 3 Nov 2026, 8:38 PM IST · 3 min read

Unutilised issue proceeds: ₹23.49 crore remained unutilised as on September 30, 2026 — the same as on March 31, 2026
Proceeds used in quarter: No issue proceeds were used during the quarter (Q2 FY27)
Fund-use timeline extension: Extended from March 31, 2026 to March 31, 2027 (board resolution dated April 22, 2026)

Monitoring agency's quarterly check

CARE Ratings Limited is the monitoring agency for the Rights Issue II of Jyoti Structures Limited. Its report for the quarter ended September 30, 2026 has been submitted to the company and passed on to the stock exchanges. The report tracks how the money raised in the rights issue has been used against the objects stated at the time of the issue.

How much was raised

Original issue size: Rs. 499.09 crore.
Revised issue size: Rs. 459.59 crore, because 92.11% of the issue size was subscribed.
The issue was open from February 17, 2025 to March 10, 2025 and was a rights issue of equity shares.

Where the money stands

There was no utilisation of issue proceeds during the quarter (Q2 FY27).
₹23.49 crore remained unutilised as on September 30, 2026, the same amount that was unutilised as on March 31, 2026.
The letter of offer originally allowed use of the funds until March 31, 2026. The board, by a resolution dated April 22, 2026, approved extending the timeline for implementation of the objects from March 31, 2026 to March 31, 2027.
Deviation from the objects of the issue: Nil. Range of deviation: Not Applicable.
The board, by a resolution dated May 06, 2025, had approved a revision in the amounts earmarked against the objects of the issue, because the rights issue was undersubscribed.

What the agency flagged as relevant for investors

The rights issue received a subscription of 92.11%; the agency states that the undersubscription may affect the viability of the objects.
The share price as on September 30, 2026 was ₹8.92, which was ~44% lower than the issue price.
The company had sizeable receivables of ₹2023.67 crore as on March 31, 2026 that were outstanding for long periods, with a provision for bad and doubtful debts of ₹14.75 crore.
The auditor's comment for FY26 notes that a reconciliation process of trade receivables was initiated after the Approved Resolution Plan, that it is under process, and that recovery has been made in some cases with the management reasonably confident of recovery in the remaining legacy receivable cases. The auditor relied on management representations for carrying amounts and expected credit loss provision as at March 31, 2026.

Other points recorded

The agency states there was no major deviation observed over its earlier report for the quarter ended June 30, 2026.
Government and statutory approvals related to the objects are stated to have been obtained, on the basis of a CA certificate and management confirmation.
Promoter holding is stated as Nil.

How to read this

This is a routine quarterly oversight report on how rights-issue money is being used. It records no diversion from stated objects and no use of funds in the quarter, but it does note that a part of the proceeds is still unutilised and that the deadline for using it has been moved to March 31, 2027. It also records observations on subscription levels, the share price relative to the issue price, and the size of long-outstanding receivables.

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