Marvel Decor deploys Rs 1.67 crore warrant proceeds fully

Marvel Decor Limited had fully utilised the Rs 1.67 crore upfront consideration from its preferential warrant issue by September 30, 2026, allocating the money to product additions, working capital and corporate purposes. The 12 lakh convertible warrants carried total consideration of Rs 6.66 crore but remained outstanding and unconverted at the reporting date.

How much of Marvel Decor’s warrant issue had been received and used?

Marvel Decor received Rs 1.67 crore, representing 25% of the Rs 6.66 crore total consideration for 12 lakh convertible warrants, and reported that the entire upfront consideration had been utilised. The company identified the fund-raising method as a preferential issue and stated that the funds were raised on April 30, 2026.

The utilisation disclosure covered the half year ended September 30, 2026. Marvel Decor reported no deviation or variation in the use of the funds raised, while the audit committee stated that there had been no deviation from the stated objects. The auditors’ comments in the deviation statement were listed as nil.

The Rs 1.67 crore received was not the full potential consideration from the warrant issue. It was the initial 25% consideration against the Rs 6.66 crore issue, while the remaining conversion-linked consideration had not been received as of September 30, 2026 because the warrants remained outstanding and had not converted into equity shares.

Where did Marvel Decor deploy the upfront warrant consideration?

Marvel Decor deployed the largest disclosed amount, Rs 83.25 lakh, for new product addition, and the utilisation statement showed the same amount used in the current year. This allocation was higher than the Rs 58.28 lakh assigned to working capital purpose and the Rs 24.98 lakh assigned to general corporate purposes.

Working capital purpose had an original allocation of Rs 58.28 lakh and showed Rs 58.28 lakh utilised in the current year. General corporate purposes had an original allocation of Rs 24.98 lakh, with Rs 24.98 lakh reported utilised. None of the three objects had a modified allocation or a reported amount of deviation or variation.

New product addition exceeded the working-capital allocation by Rs 24.97 lakh, based on the figures in the utilisation statement. General corporate purposes were the smallest stated use at Rs 24.98 lakh, compared with Rs 83.25 lakh for product additions. The three disclosed uses together represented the full upfront consideration reported as utilised by September 30, 2026.

Were Marvel Decor’s convertible warrants converted into shares?

No, Marvel Decor’s 12 lakh convertible warrants remained outstanding and had not been converted into equity shares as of September 30, 2026. The company had therefore received the Rs 1.67 crore upfront consideration rather than the full Rs 6.66 crore consideration associated with the warrant issue.

Marvel Decor considered the dilutive effect of the unconverted warrants in calculating diluted earnings per share under Indian Accounting Standard 33, or Ind AS 33, on earnings per share. For the half year ended September 30, 2026, it reported basic earnings per share of Rs 1.52 and diluted earnings per share of Rs 1.51, using the applicable weighted-average period.

The Rs 0.01 difference between basic and diluted earnings per share reflects Marvel Decor’s stated treatment of the warrants in the diluted calculation. It does not indicate that shares were issued through conversion, as the disclosure expressly stated that the warrants had not converted by September 30, 2026.

The filing did not disclose a conversion date, conversion price, the identity of warrant holders or a timetable for receipt of the remaining consideration. It established that Rs 1.67 crore had been received and fully utilised by the reporting date, while the balance associated with the Rs 6.66 crore issue remained tied to conversion.

What oversight applied to Marvel Decor’s use of the proceeds?

Marvel Decor reported that there was no monitoring agency for the Rs 1.67 crore raised through the preferential issue. The utilisation disclosure was reviewed by the audit committee and taken on record by the board of directors at its meeting on November 7, 2026, according to the certificate on utilisation of issue proceeds.

Chetan Agarwal & Co., Chartered Accountants, issued its certificate on November 7, 2026 after verifying the information in the utilisation annexure using relevant company records prepared and produced by Marvel Decor’s board. The certificate was provided in compliance with the National Stock Exchange, or NSE, circular dated September 5, 2024 for listed entities on NSE Emerge.

The certificate stated that there was no deviation in the objects for the use of funds and that the upfront consideration received against the warrants had been utilised in full. The detailed table also showed no modified object and no deviation or variation for the Rs 83.25 lakh product-addition allocation, the Rs 58.28 lakh working-capital allocation or the Rs 24.98 lakh corporate-purpose allocation.

This disclosure does not confirm deployment of the entire Rs 6.66 crore warrant issue because only Rs 1.67 crore had been received by September 30, 2026. The certificate addresses the use of funds raised during the reporting period, while the remaining consideration depends on the still-unconverted 12 lakh warrants.

Conclusion

Marvel Decor’s September 30, 2026 disclosure shows that it used all Rs 1.67 crore of upfront preferential-warrant proceeds without a stated deviation from the original objects. Product additions received Rs 83.25 lakh, followed by Rs 58.28 lakh for working capital and Rs 24.98 lakh for general corporate purposes, while the warrants remained unconverted.

The next disclosed matter to watch is whether the 12 lakh outstanding convertible warrants convert into equity shares, as they carried total consideration of Rs 6.66 crore and only 25% had been received by September 30, 2026. Until conversion, the remaining consideration is unreceived, although Marvel Decor has included the applicable weighted-average dilutive effect in its half-year earnings-per-share calculation.