Integrity Infrabuild uses Rs 6.075 crore for working capital

Integrity Infrabuild Developers Limited used all Rs 6.075 crore received from its convertible warrants for working-capital requirements through September 30, 2026, and reported no unutilised balance. Integrity Infrabuild said Rs 6.561 crore remained receivable on conversion of the 8.10 lakh warrants that had not converted.

How did Integrity Infrabuild use convertible-warrant proceeds?

Integrity Infrabuild used the full Rs 6.075 crore received from convertible warrants for working-capital requirements as at September 30, 2026. Its utilisation certificate states that no warrant proceeds were unutilised at that date, although the overall warrant issue also identified machinery purchases and general corporate purposes as intended uses.

The receipts comprised Rs 3.159 crore, or 25% of the issue price collected on the allotment of 11.70 lakh warrants on February 3, 2026, and Rs 2.916 crore received as the remaining 75% on 3.60 lakh warrants converted during the half year ended September 30, 2026. The certificate was issued by Jaymin Shah & Associates on November 6, 2026.

What was Integrity Infrabuild's original warrant allocation?

Integrity Infrabuild's original preferential-warrant allocation totalled Rs 12.636 crore across working capital, machinery purchases and general corporate purposes. Working capital represented Rs 7 crore of the proposed use, while machinery and general corporate purposes accounted for Rs 2.5353 crore and Rs 3.1007 crore respectively.

The company reported no modification to those objects or allocations through September 30, 2026. However, the entire Rs 6.075 crore actually collected by that date was reported as used for working capital, so no received warrant money had been used for machinery or general corporate purposes at the reporting date.

How much can Integrity Infrabuild still receive from warrants?

Integrity Infrabuild said Rs 6.561 crore was receivable upon conversion of the remaining 8.10 lakh warrants as at September 30, 2026. This was the unpaid portion of the Rs 12.636 crore preferential issue after the company had received Rs 6.075 crore.

The company issued 11.70 lakh convertible warrants at Rs 108 each after shareholder approval at an extraordinary general meeting on December 19, 2025, followed by National Stock Exchange in-principle approval on January 19, 2026. The warrants were allotted on February 3, 2026, against the 25% upfront receipt of Rs 3.159 crore.

Of the allotted warrants, 3.60 lakh were converted into 3.60 lakh equity shares during the half year ended September 30, 2026. Each resulting share had a face value of Rs 10 and was issued at a premium of Rs 98, while the certificate does not state a date by which the remaining 8.10 lakh warrants must be converted.

How does the warrant funding compare with Integrity Infrabuild's IPO use?

Integrity Infrabuild had fully used Rs 12 crore raised in its initial public offering, or IPO, by March 31, 2026, across four disclosed purposes. The IPO allocation included Rs 5.03 crore for machinery and equipment, Rs 3.64 crore for working capital, Rs 2.40 crore for general corporate purposes and Rs 93 lakh for issue-related expenses.

The reported use of the two fund raisings differs by timing and category. IPO proceeds had been fully deployed across all four stated objects by March 31, whereas the Rs 6.075 crore received under the warrant issue through September 30 was all used for working capital, with Rs 6.561 crore still receivable rather than held as an unspent balance.

The cash-flow statement also records Rs 2.916 crore of proceeds from the issue of share warrants for the reported period, compared with Rs 3.159 crore in the comparative column. The utilisation certificate provides the cumulative figure of Rs 6.075 crore received through September 30, including the February 2026 upfront payment and the conversion-related receipt.

What did the auditor say about Integrity Infrabuild's disclosure?

Jaymin Shah & Associates issued the utilisation certificate dated November 6, 2026 for Integrity Infrabuild's board to meet its Equity Listing Agreement obligation. The certificate says it examined the statement detailing the utilisation of funds raised, including the Rs 6.075 crore received from the preferential allotment through September 30.

The certificate restricts its use to the board's listing-compliance purpose, including submission of the statement to the Audit Committee. It says the auditor does not accept liability or a duty of care to other people who may receive or view the certificate.

Separately, the auditor's limited review report on the standalone half-yearly results for September 30, 2026 stated that nothing had come to its attention to suggest a material misstatement in the financial results. The report also noted that detailed records were not maintained for work-in-progress and raw material totalling Rs 2.4917 crore, preventing verification of the work-in-progress value and assessment of its potential impact.

Conclusion

Integrity Infrabuild's disclosure shows that the cash collected so far under its Rs 12.636 crore warrant programme has been directed entirely to working capital. The reporting distinguishes between the Rs 6.075 crore received and deployed by September 30, 2026 and the amounts assigned to machinery and general corporate purposes that had not yet been funded from warrant collections.

The next point to watch is whether the remaining 8.10 lakh warrants convert, which would make Rs 6.561 crore receivable under the stated terms. Future utilisation statements can then show whether further receipts are applied to the Rs 2.5353 crore machinery allocation, the Rs 3.1007 crore general-corporate-purpose allocation, or working capital.