Monitoring Agency Details

Agency: CARE Ratings Limited

Report Date: August 14, 2026

Report Reference: No. CARE/NRO/GEN/2026-27/1119

Issue Details

Issue Period: September 26, 2025 to October 6, 2025

Type of Issue: Public

Type of Securities: Equity

Issue Size: ₹59.06 crore

IPO Grading: Not applicable

Material Deviations in Fund Utilization

Working Capital Requirement Deviation

Planned Allocation (Offer Document): ₹12.50 crore in FY26 and ₹12.50 crore in FY27

Actual Utilization as of June 30, 2026: ₹24.83 crore

Deviation Range: 10-25%

Impact: Early and excess utilization may adversely impact availability of funds for FY27 requirements

Unidentified Acquisition and General Corporate Purposes Deviation

Planned Allocation (Offer Document): ₹1.09 crore in FY26 and ₹1.09 crore in FY27

Actual Utilization as of June 30, 2026: ₹2.12 crore

Deviation Range: 10-25%

Marketing Expenditure Deviation

Object Clause Specification: Entire ₹15.00 crore to be utilized specifically for "Advertisement through HT Media Platform"

Actual Utilization: ₹8.60 crore spent through other sources including Google ads, Facebook ads, offline marketing, and other performance marketing platforms

Q1 FY27 Expenditure: ₹5.25 crore spent on non-HT Media platforms

Shareholder Approval Status

No shareholder approval obtained for any of the deviations from the offer document.

Fund Utilization Progress as of June 30, 2026

| Object Head | Proposed Amount (₹ Cr) | Utilized Amount (₹ Cr) | Unutilized Amount (₹ Cr) | Comments |

| Capital Expenditure Requirement | 10.68 | 5.64 | 5.03 | Utilization towards cold storage and purchase of vehicles for transportation |

| Marketing Expenditure | 15.00 | 8.60 | 6.40 | Used for online/offline advertising and performance marketing |

| Working Capital Requirements | 25.00 | 24.83 | 0.17 | Nil spent during Q1 FY27 |

| Unidentified Acquisition and General Corporate Purposes | 2.18 | 2.12 | 0.06 | Nil spent during Q1 FY27 |

| Issue Related Expenses | 6.21 | 6.14 | 0.07 | Nil spent during Q1 FY27 |

| Total | 59.06 | 47.33 | 11.73 | |

Deployment of Unutilized Proceeds

Total Unutilized Funds Invested: ₹11.87 crore

Investment Details:

  • Fixed deposits - ICICI Bank (707413000004): ₹3.00 crore, maturity November 11, 2026, return 6.25%
  • Fixed deposits - ICICI Bank (707410000017): ₹2.00 crore, maturity September 2, 2026, return 4.50%
  • Fixed deposits - Yes Bank (102540600025246): ₹3.00 crore, maturity November 7, 2026, return 6.75%
  • Standard Chartered Bank Monitoring Account (A/c no. 52505153501): ₹3.87 crore (includes interest of ₹0.14 crore)

Additional Material Disclosures

Share Price Performance

As of August 12, 2026, market price of company's equity shares is approximately ₹74, which is below the issue price of ₹100 per share.

Regulatory Compliance Issue

As per FY26 audit report, company did not comply with Section 185 of Companies Act, 2013 relating to unsecured advances/loans to Managing Director Deepanshu Manchanda and Director Priya Aggarwal.

FY26 Advances:

  • Deepanshu Manchanda: ₹47.33 lakh advanced, ₹40.25 lakh outstanding as of March 31, 2026
  • Priya Aggarwal: ₹203.10 lakh advanced, ₹34.75 lakh outstanding as of March 31, 2026

Remedial Action: Shareholder approval obtained for loans, guarantee or security under section 185 of Companies Act, 2013 up to ₹100 crores through Extra-Ordinary General Meeting held on July 25, 2026.

Source Documents and Certifications

  • CA Certificate from Statutory Auditor KRA & Co. dated August 11, 2026
  • Management Certificate
  • Bank Statements
  • Offer Document
  • Previous Monitoring Agency Report (Q4 FY26)