Eventions Limited sets Rs 18.80 crore for working capital

Eventions Limited plans to allocate Rs 18.80 crore of net issue proceeds to working capital, its largest specified use of funds, after trade-receivable days increased from 37 in FY24 to 73 in FY26. The requirement reflects advance payments to event vendors before customer collections, with 65 receivable days assumed for March 2027 and March 2028.

Why is Eventions putting Rs 18.80 crore into working capital?

Eventions is allocating Rs 18.80 crore because its event-management model requires payments before it collects money from many customers. Eventions provides integrated event management and MICE, or meetings, incentives, conferences and exhibitions, services for corporate and institutional clients. The company says it makes advance payments to vendors, service providers, venue operators and logistics partners before events are executed, while customer realisations are generally received after milestones or events are completed.

The Rs 18.80 crore allocation is intended to fund larger and higher-value assignments, including marquee and multi-location events. Eventions says timely vendor payments are needed to secure venues, logistics and event infrastructure, and can enable commercial terms with suppliers. The company historically funded working capital through internal accruals and fund-based and non-fund-based banking facilities, but says growth in order size and larger-format events will increase its incremental requirement.

Working capital, as presented by Eventions, is current assets less current liabilities. The company reported a working-capital requirement of Rs 23.99 crore at the end of FY26, compared with Rs 10.93 crore in FY25 and Rs 3.92 crore in FY24. In FY26, short-term borrowings represented Rs 8.03 crore of the funding pattern and internal accruals represented Rs 15.96 crore, together matching the stated Rs 23.99 crore requirement.

How did Eventions’ collection cycle change?

Eventions’ trade-receivable days rose by 36 days between FY24 and FY26, extending the collection period used in its working-capital analysis. Trade receivables are amounts owed by customers for services delivered. The filing links the projected higher receivable cycle to Eventions’ strategy of expanding its industry presence and serving larger and more premium clients.

The March 2027 and March 2028 projections assume that receivable days decline from FY26’s 73 days to 65 days, but remain 28 days above the FY24 level. That 65-day assumption is a component of the disclosed funding requirement. Eventions also assumes trade-payable days of 10 days in each projected period, compared with 13 days in FY26, so the forecast does not depend on a longer supplier-credit period to offset slower customer collections.

Trade receivables were Rs 29.87 crore in FY26, up from Rs 9.86 crore in FY25 and Rs 12.55 crore in FY24. Total current assets reached Rs 46.96 crore in FY26, compared with Rs 21.21 crore in FY25. Eventions describes receivables as a key working-capital component and says their growth reflects business expansion, although its forecast uses 65 collection days rather than the FY26 actual of 73 days.

What other items are expected to absorb Eventions’ cash?

Eventions expects short-term loans and advances, mainly prepaid expenses and advances to vendors and employees, to rise to Rs 14.71 crore in March 2027 and Rs 20.52 crore in March 2028. Those balances were Rs 14.12 crore in FY26, Rs 11.34 crore in FY25 and Rs 11.92 crore in FY24. The company attributes the projected increase to business growth requiring higher advance payments to vendors and service providers.

The company projects total current assets of Rs 36.10 crore in March 2027 and Rs 50.46 crore in March 2028. It projects current liabilities of Rs 12.49 crore and Rs 12.79 crore, respectively, resulting in working-capital requirements of Rs 23.61 crore and Rs 33.17 crore. The March 2028 requirement is Rs 9.56 crore higher than the March 2027 estimate under the company’s stated assumptions.

Other current liabilities are forecast at Rs 9.42 crore in March 2027 and Rs 13.09 crore in March 2028, versus Rs 18.24 crore in FY26. Eventions says these liabilities primarily comprise customer advances, employee-related payables and statutory dues. Short-term provisions, including gratuity, leave encashment, Employees’ State Insurance, provident fund and income-tax provisions, are forecast at Rs 41 lakh in March 2027 and Rs 49 lakh in March 2028.

How will Eventions deploy the proceeds and fund the remaining need?

Eventions plans to deploy Rs 9 crore of the working-capital proceeds by FY2026-27 and the remaining Rs 9.80 crore by FY2027-28. The total Rs 18.80 crore working-capital allocation is larger than the Rs 7 crore earmarked for repayment or prepayment of borrowings and the Rs 1.40 crore proposed as a debt investment in subsidiary Gantu Online Private Limited. The schedule states that proceeds not deployed within the estimated periods may be used in subsequent financial years.

For its projected working-capital requirement, Eventions shows no short-term borrowings in either March 2027 or March 2028. It expects Rs 9 crore of fresh-issue net proceeds and Rs 14.61 crore of internal accruals to fund the Rs 23.61 crore March 2027 requirement. For March 2028, the funding pattern shows Rs 9.80 crore from fresh-issue net proceeds and Rs 23.37 crore from internal accruals for the Rs 33.17 crore requirement.

The filing also says that any balance working-capital need may be met through internal accruals and existing or enhanced working-capital facilities in the ordinary course of business. Eventions has appointed Infomerics Valuation and Rating Limited as monitoring agency under Regulation 262 of the Securities and Exchange Board of India Issue of Capital and Disclosure Requirements Regulations. The company says net proceeds will be held in a separate bank account and monitoring reports will be placed before its audit committee.

Conclusion

Eventions’ Rs 18.80 crore working-capital proposal is tied to the timing of event execution: vendor and venue advances are paid before customer collections, while receivable days reached 73 in FY26. The projected requirement rises from Rs 23.61 crore in March 2027 to Rs 33.17 crore in March 2028, with receivables and vendor advances remaining central current-asset drivers.

The disclosed point to watch is whether Eventions achieves its 65 trade-receivable-day assumption in March 2027 and March 2028 while funding the stated requirement with Rs 18.80 crore of issue proceeds and internal accruals. The deployment plan places Rs 9 crore by FY2026-27 and Rs 9.80 crore by FY2027-28, while allowing later deployment if business, market or operational factors delay use of funds.