VL E-Governance & IT Solutions Limited — Others, 15-05-2025: Monitoring Agency Report

VL E-Governance & IT Solutions Limited has announced a Monitoring Agency Report by CARE Ratings on the use of Rs. 400.99 crore raised via a preferential issue, below the initial target of Rs. 630 crore. Most funds repaid unsecured loans and creditors, mainly related parties (Rs. 67.21 crore), with Rs. 3.01 crore used for corporate expenses like salaries and assets. No deviations in fund usage were found, but contract asset write-offs and management changes, including the promoter’s death and new leadership, were noted. Unutilized proceeds of Rs. 44.09 crore remain in fixed deposits. The share price has dropped significantly post-issue.