Asgard Alcobev gains approval for ₹21 crore CMJ conversion

Asgard Alcobev Limited obtained shareholder approval on 30 September 2026 to convert ₹21 crore of its ₹21.01 crore inter-corporate deposit with CMJ Breweries Private Limited into equity shares, but the transaction was not recorded at that date because definitive agreements and share allotment remained pending.

What did Asgard Alcobev shareholders approve?

Asgard Alcobev shareholders approved conversion of ₹21 crore from an inter-corporate deposit, or ICD, of ₹21.01 crore given to CMJ Breweries, a related party. The board had approved the proposal in principle on 14 August 2026, subject to definitive terms and applicable approvals, and members approved it at the annual general meeting on 30 September 2026.

The conversion covers almost all of the principal deposit. The remaining ₹1.20 lakh of principal will continue as a loan or receivable, while interest receivable will also remain a loan or receivable under the disclosed proposal. The filing does not state the number of CMJ Breweries shares to be issued, their conversion price, their valuation, or Asgard Alcobev's ownership percentage after allotment.

CMJ Breweries is identified as a subsidiary in Asgard Alcobev's half-year cash-flow statement and as a related party in the standalone results. The proposed transaction therefore changes the form of a related-party exposure: ₹21 crore of loan principal is intended to become an equity investment once the stated conditions are fulfilled.

When will Asgard Alcobev record the CMJ conversion?

Asgard Alcobev says it will account for the conversion in the quarter ending 31 December 2026, after definitive agreements are executed and CMJ Breweries shares are allotted. Shareholder approval on 30 September 2026 did not itself create an accounting entry in the unaudited standalone results for the quarter and half year ended that date.

As at 30 September 2026, Asgard Alcobev continued to carry the ICD and accrued interest at their existing carrying values. Accordingly, the standalone balance sheet does not yet show a corresponding increase in investments from the proposed ₹21 crore conversion. The company did not provide a date for the agreements or allotment.

The independent auditor issued an unmodified conclusion on the standalone results for the quarter and half year ended 30 September 2026. That review covered the reported results, while the company has explicitly placed accounting for the conversion in the subsequent December 2026 quarter, conditional on execution and allotment.

How did the CMJ deposit affect standalone income?

Asgard Alcobev reported ₹84.24 lakh of other income for the half year ended 30 September 2026, comprising interest on the ICD given to CMJ Breweries. Other income was ₹42.37 lakh in the September 2026 quarter, marginally above ₹41.87 lakh in the June 2026 quarter, while standalone revenue from operations was nil in both quarters.

Standalone profit after tax was ₹13.78 lakh for the half year ended 30 September 2026, compared with a loss of ₹5.77 lakh in the corresponding half year ended 30 September 2025. The change followed ₹84.24 lakh of other income and ₹65.61 lakh of total expenses in the latest half year, against no other income and ₹5.77 lakh of expenses a year earlier.

The cash-flow statement reports a different cash measure from the income statement. It shows ₹62.50 lakh of interest on the CMJ Breweries loan under investing activities for the half year ended 30 September 2026, compared with ₹84.24 lakh recognised as interest income. The filing does not explain the ₹21.74 lakh difference, but the two figures show that recognised interest and cash-flow presentation were not identical in the period.

What do the standalone accounts show before conversion?

Asgard Alcobev reported non-current investments of ₹21.90 crore at 30 September 2026, unchanged from 31 March 2026. Other non-current financial assets rose to ₹21.35 crore from ₹20.61 crore, while the filing separately states that the ICD and accrued interest remained at their existing carrying values pending the proposed conversion.

Total standalone assets were ₹43.64 crore at 30 September 2026, compared with ₹43.49 crore at 31 March 2026. Total equity increased to ₹43.12 crore from ₹42.99 crore, non-current borrowings stayed at ₹20 lakh, and current assets fell to ₹39.04 lakh from ₹96.66 lakh as other current assets declined to ₹2.27 lakh from ₹60.94 lakh.

Asgard Alcobev also disclosed ₹79.75 lakh of share-application money from preferential convertible warrants at 30 September 2026. It issued 2.20 crore warrants and received 25% of the issue price, stating that the proceeds had been fully used for the objects in the offer document without deviation or variation. This warrant issue is separate from the proposed CMJ Breweries conversion.

What do CMJ Breweries' reported results show?

CMJ Breweries was a 78.90% subsidiary of Asgard Alcobev with effect from 17 February 2026, according to the consolidated auditor's report. Before consolidation adjustments, its total assets were ₹162.02 crore at 30 September 2026, and its quarterly revenue including other income was ₹49.15 crore for the quarter ended that date.

For the half year ended 30 September 2026, CMJ Breweries reported revenue including other income of ₹102.43 crore and net profit after tax of ₹5.53 crore before consolidation adjustments. Its net cash outflow was ₹50.06 lakh for the six-month period, according to interim financial information reviewed by another auditor on 11 November 2026.

The consolidated auditor also highlighted a prior-period accounting correction linked to the acquisition of CMJ Breweries. The correction concerned deferred tax liability and depreciation on a fair-value adjustment to buildings, with ₹37.41 lakh of depreciation for 17 February 2026 to 31 March 2026 recognised in restated results for the quarter ended 30 June 2026. The auditor's conclusion was not modified.

Conclusion

Asgard Alcobev has authority to convert ₹21 crore of its ₹21.01 crore CMJ Breweries ICD into equity, but the balance-sheet and income-statement treatment had not changed at 30 September 2026. The remaining ₹1.20 lakh of principal and the interest receivable will stay outside the conversion, while ICD interest supplied all ₹84.24 lakh of standalone other income in the latest half year.

The next disclosed event is the quarter ending 31 December 2026, when Asgard Alcobev expects to account for the conversion after agreements are executed and shares are allotted. The unresolved matters are the definitive transaction terms, including the number of CMJ Breweries shares, the conversion price and the resulting ownership position, none of which the 13 November 2026 filing disclosed.