Key Quantitative Figures
- Total Issue Size: ₹3,143.52 crore
- Warrants Allotted: 23.35 crore warrants at ₹126 per warrant
- Amount Received: ₹735.55 crore (25% of issue price received on August 21, 2026 and August 27, 2026)
- Amount Utilized in Q2 FY27: ₹2.46 crore
- Unutilized Amount: ₹733.09 crore
- Current Market Price: ₹70.10 per share (as of October 28, 2026)
- Warrant Exercise Price: ₹126.00 per share
Dates of Action
- Warrant Allotment Dates: August 21, 2026 and August 27, 2026
- Funds Received: August 21, 2026 and August 27, 2026
- Monitoring Period: Quarter ended September 30, 2026
- Board Approval: October 30, 2026
- Expected Utilization Timeline: Within 1 year from receipt of funds (by August 20, 2027 and August 26, 2027)
- Warrant Exercise Period: 18 months from allotment (up to February 20, 2028 and February 26, 2028)
Parties Involved
- Monitoring Agency: CARE Ratings Limited
- Promoters: Subhash Chandra Goenka, Sushila Goenka, Punit Goenka, Amit Goenka
- Company Secretary: Sangeeta Shetty (ACS 18865)
- CFO: Mukund Galgali (Deputy CEO and CFO)
- Auditors: C K'S P AND CO LLP
- Bank Partners: ICICI Bank, HDFC Bank, AU Small Finance Bank
Utilization Breakdown
Objects and Proposed Utilization (₹ crore):
1. Sports rights and production: 1,000.00 (₹450cr FY27, ₹350cr FY28, ₹200cr FY29)
2. New Content and Initiatives - technology & Digital: 450.00 (₹200cr FY27, ₹150cr FY28, ₹100cr FY29)
3. Micro-drama (Bullet): 450.00 (₹100cr FY27, ₹200cr FY28, ₹150cr FY29)
4. Kids edutainment, Animation: 300.00 (₹100cr FY27, ₹100cr FY28, ₹100cr FY29)
5. Potential M&A: 944.00 (to be utilized over FY27-FY29)
Actual Q2 FY27 Utilization:
- Micro-drama (Bullet): ₹0.13 crore
- Kids edutainment, Animation: ₹2.33 crore
- Total: ₹2.46 crore
Deployment of Unutilized Proceeds
Fixed Deposits (Total: ₹685 crore):
- ICICI Bank: ₹300 crore (3 FDs of ₹100cr each, maturity: 25-02-2027, return: 6.25% p.a.)
- HDFC Bank: ₹250 crore (2 FDs of ₹100cr + 1 FD of ₹50cr, maturities: 23-11-2026, 23-12-2026, 22-01-2027, return: 6.10% p.a.)
- AU Small Finance Bank: ₹135 crore (₹35cr maturing 29-10-2026 at 6.25% p.a. + ₹100cr maturing 30-12-2026 at 7.05% p.a.)
Current Account Balance: ₹48.09 crore
Monitoring Agency Findings
1. Commingling of Funds: The company transferred ₹15.55 crore from Warrant Subscription Account to current account, mixing issue proceeds with operational funds. Approximately ₹30 crore was subsequently transferred to vendor payment account, and ₹2.46 crore expenditure was made from this mixed account, making specific utilization unidentifiable.
2. Market Price Risk: Current market price (₹70.10) is significantly below warrant exercise price (₹126.00), creating risk that allottees may not exercise warrants, potentially reducing fund inflow by ₹2,206.65 crore and impacting project viability.
3. Partial Allotment: Company allotted only 23.35 crore warrants (of authorized 24.95 crore), potentially reducing total fund raise from ₹3,143.52 crore to ₹2,942.18 crore even if all warrants are exercised.
Financial Impact
Limited financial impact quantified for Q2 FY27 with only ₹2.46 crore utilized. Significant contingent exposure exists regarding future warrant exercise and full fund availability.