SG Finserve Reports Fund Utilization Details to CARE Ratings

SG Finserve Limited has filed its Monitoring Agency Report for the quarter ended March 31, 2026. The report, prepared by CARE Ratings Limited, confirms that ₹316.31 crore of the ₹450.00 crore raised through a preferential issue has been utilized. The utilization aligns with the company's stated objectives, with no significant deviations noted.

Fund Deployment and Oversight

The preferential issue, totaling ₹450.00 crore, aimed to strengthen working capital, support general corporate purposes, and infuse capital into the dealer financing segment. CARE Ratings, acting as the independent monitoring agency, has overseen the fund utilization.

During the fourth quarter of fiscal year 2026, ₹316.31 crore of these proceeds were used. A substantial portion, exceeding ₹200 crore, was channeled to Apollo Group entities specifically for dealer financing. This indicates a strategic focus on expanding this business vertical.

Investor Assurance and Company Operations

The CARE Ratings report provides investors with confidence that the raised capital is being deployed as planned. This signals operational progress and financial discipline. The company continues its financial operations following this capital infusion.

Key Monitoring Points

As of March 31, 2026, ₹21.19 crore of the preferential issue proceeds had not yet been received by the company. While this is not considered a material deviation, the timely receipt of these remaining funds will be monitored.

Financial Snapshot

• Total Preferential Issue Size: ₹450.00 crore
• Amount Received: ₹428.81 crore
• Amount Utilised in Q4 FY26: ₹316.31 crore
• Amount Yet to be Received (as of March 31, 2026): ₹21.19 crore

What to Track Next

Investors will monitor the receipt of the outstanding ₹21.19 crore. Further tracking will focus on the deployment and progress of funds allocated for working capital and general corporate purposes, as well as the performance of the dealer financing segment following the significant capital infusion. Any updates in subsequent CARE Ratings monitoring reports will also be of interest.