AvenuesAI deploys Rs 399.32 crore in rights proceeds by September

AvenuesAI Limited (formerly known as Infibeam Avenues Limited) had deployed Rs 399.32 crore of net rights-issue proceeds by September 30, 2026, leaving Rs 297.20 crore unutilised. The company reported spending on subsidiary debt repayment, Rediff expansion, technology work, acquisitions, corporate purposes and issue expenses, while the remaining balance was temporarily held with scheduled banks.

How much of AvenuesAI's rights-issue proceeds has been used?

AvenuesAI had utilised Rs 399.32 crore from net rights-issue proceeds of Rs 696.52 crore as of September 30, 2026. The rights issue had originally proposed proceeds of Rs 699.99 crore, but Rs 3.47 crore was not receivable after partly paid-up shares were forfeited for non-payment of the first and final call money.

The company had raised Rs 349.99 crore through application money in the previous year and received Rs 346.52 crore through the first and final call on partly paid-up shares. It also disclosed Rs 4.60 crore of total offer expenses, excluding taxes, which were adjusted against securities premium under Section 52 of the Companies Act, 2013.

AvenuesAI reported Rs 297.20 crore of net unutilised proceeds at September 30, 2026. The reported utilisation total and remaining balance together equal the Rs 696.52 crore net proceeds, after accounting for the Rs 3.47 crore shortfall from shares on which call money was not received.

Where did AvenuesAI direct the deployed capital?

AvenuesAI directed its largest reported utilisation, Rs 239.88 crore, to funding acquisitions of unidentified businesses for future growth, other business initiatives and general corporate purposes. The disclosure combines these uses in one line item, so it does not state how much was spent separately on acquisitions, future growth initiatives or general corporate requirements.

AvenuesAI used Rs 76.70 crore for further investment in Rediff.com India Limited to expand its digital and payment ecosystem. The stated proposed allocation for that purpose was Rs 87.66 crore, while the company reported Rs 9.44 crore of utilisation for advanced technology development and artificial intelligence, or AI, software-related work.

The company also used the full Rs 69.84 crore set aside for an investment in its wholly owned subsidiary, Infibeam Projects Management Private Limited. That investment was intended to enable partial repayment or prepayment of secured loans availed by the subsidiary, and the proposed and utilised amounts were the same at September 30, 2026.

AvenuesAI reported Rs 3.46 crore of rights-issue expense utilisation against a proposed Rs 4.60 crore. Its filing states that total offer expenses were adjusted against securities premium, while the proceeds-utilisation schedule records the expense line as part of the use-of-funds presentation.

Why did AvenuesAI change the route for its AI spending?

AvenuesAI's shareholders approved a variation in the rights-issue object at the annual general meeting on September 29, 2026. Funds initially earmarked for investment in Nueromind Technologies Private Limited, a wholly owned subsidiary, were reallocated for direct use by AvenuesAI for advanced technology development and AI software-related activities.

AvenuesAI said the change was limited to the mode of implementation and did not change the end use of the proceeds. The original Letter of Offer was dated June 19, 2025, and the company disclosed Rs 9.44 crore of utilisation under the advanced-technology and AI-software objective by September 30, 2026.

The reported Rs 297.20 crore net unutilised balance therefore remains relevant to the company's technology and AI deployment plans. The filing does not provide a project schedule, vendor commitment, capital-expenditure timetable or expected completion date for the remaining proceeds.

Why were net proceeds below the Rs 699.99 crore offer amount?

AvenuesAI's net proceeds were Rs 696.52 crore because Rs 3.47 crore of call money became unavailable. The amount related to 69,43,139 partly paid-up equity shares for which the first and final call money remained unpaid and which were forfeited during the quarter under review.

The company had allotted 69,99,85,723 partly paid-up equity shares in the previous year at an issue price of Rs 10 per share, including a Rs 9 premium. It subsequently converted 69,30,42,584 shares into fully paid-up shares after receiving the Rs 5 per-share first and final call, including Rs 4.50 premium.

AvenuesAI stated that the Rs 3.47 crore shortfall would be adjusted against general corporate purposes. This means the shortfall was not assigned to the stated loan-repayment, Rediff expansion or advanced-technology objectives in the disclosure.

Where is AvenuesAI holding its unutilised rights proceeds?

AvenuesAI said the Rs 297.20 crore of net unutilised rights proceeds was temporarily invested in deposits with scheduled banks and kept in current accounts with scheduled banks as of September 30, 2026. The company did not disclose the split between deposits and current accounts, the names of the banks or the interest income associated with those funds.

The rights-proceeds disclosure should be distinguished from the consolidated balance-sheet cash figure. AvenuesAI reported cash and cash equivalents of Rs 546.52 crore at September 30, 2026, compared with Rs 913.23 crore at March 31, 2026, but that balance-sheet line covers more than the unutilised rights-issue proceeds.

The capital-allocation update accompanied revenue growth in the first half of financial year 2026-27. AvenuesAI reported consolidated revenue from operations of Rs 5,559.64 crore for the six months ended September 30, 2026, up from Rs 3,245.12 crore a year earlier, while profit after tax increased to Rs 156.47 crore from Rs 126.08 crore.

Conclusion

AvenuesAI had deployed Rs 399.32 crore of its Rs 696.52 crore net rights proceeds by September 30, 2026. The reported uses included Rs 239.88 crore for acquisitions, business initiatives and general corporate purposes, Rs 76.70 crore for Rediff.com India Limited, and Rs 69.84 crore for secured-loan repayment or prepayment through Infibeam Projects Management Private Limited.

The next item to watch is the deployment of the Rs 297.20 crore temporarily held with scheduled banks, particularly for the retained advanced-technology and AI-software objective. Management has also said its priorities for the rest of financial year 2026-27 include unlocking Rediff value, expanding CCAvenue payments internationally and developing the AvenuesAI Transaction Intelligence Score, or TISco.