Raj Consumer Care uses Rs 5.75 crore for promoter borrowings

Raj Consumer Care Limited used the entire Rs 5.75 crore raised through its 27 July 2026 preferential issue to repay or prepay promoter, promoter-group and director borrowings by 30 September 2026, while reporting nil use of the Rs 50 lakh set aside for general corporate purpose and no deviation.

How did Raj Consumer Care use the Rs 5.75 crore raised?

Raj Consumer Care used all Rs 5.75 crore reported as raised for repayment or prepayment, in full or in part, of certain borrowings availed from promoters, promoter-group entities and directors as at 30 September 2026. Its funds-utilisation disclosure records Rs 5.75 crore deployed against that object and nil deployed for general corporate purpose.

The Rs 5.75 crore was raised on 27 July 2026 through a preferential issue of equity shares and warrants. Raj Consumer Care allotted 10 lakh equity shares at Rs 46 each, raising Rs 4.60 crore, and received Rs 1.15 crore as the upfront warrant subscription amount from 10 lakh warrants at Rs 11.50 each.

Each warrant carries an issue price of Rs 46 and is convertible into or exchangeable for one fully paid equity share with a face value of Rs 10. The Rs 11.50 received per warrant represents 25% of its Rs 46 issue price, according to the 30 September 2026 disclosure.

What were Raj Consumer Care's stated uses for the issue?

Raj Consumer Care identified repayment or prepayment of promoter, promoter-group and director borrowings, along with general corporate purpose, as the two uses for the preferential issue. The original allocation was Rs 8.70 crore for the borrowing-repayment object and Rs 50 lakh for general corporate purpose.

The two allocations total Rs 9.20 crore, compared with Rs 5.75 crore recorded as funds raised by 30 September 2026. The difference is Rs 3.45 crore, which equals the unpaid 75% portion of the Rs 46 price for the 10 lakh warrants, although the filing does not state when or whether that balance will be received.

Of the Rs 8.70 crore allocation for borrowing repayment, the disclosure shows Rs 5.75 crore utilised by 30 September 2026. The remaining Rs 2.95 crore of that allocation had not been reported as utilised at that date, while the Rs 50 lakh general-corporate-purpose allocation also showed no utilisation.

Did Raj Consumer Care report a deviation in fund use?

Raj Consumer Care reported no deviation or variation in the use of preferential-issue funds for the quarter ended 30 September 2026. The company marked the deviation or variation field as not applicable for both the Rs 8.70 crore repayment allocation and the Rs 50 lakh general-corporate-purpose allocation.

The disclosure also shows no modified object and no modified allocation for either use of proceeds. Raj Consumer Care reported that there was no monitoring agency for the issue and recorded no audit committee or auditor comments on a deviation.

The filing defines deviation or variation as a change in the objects or purposes of fund raising, a difference in actual use against originally disclosed use, or a change in the terms of a fund-raising contract. On that reporting basis, Raj Consumer Care said the Rs 5.75 crore used by 30 September 2026 was deployed for its stated repayment purpose.

How did Raj Consumer Care's borrowings change by September?

Raj Consumer Care reported current borrowings of Rs 18.78 crore at 30 September 2026, compared with Rs 25.54 crore at 31 March 2026. The Rs 6.76 crore decline over the six-month period exceeds the Rs 5.75 crore preferential-issue proceeds reported as used for promoter, promoter-group and director borrowings.

The balance sheet reported total liabilities of Rs 36.07 crore at 30 September 2026, down from Rs 40.41 crore at 31 March 2026. Current liabilities declined to Rs 35.03 crore from Rs 39.24 crore over the same period, but the filing does not attribute the movement in these wider liability categories solely to the preferential-issue proceeds.

Raj Consumer Care's cash-flow statement reported financial costs of Rs 14.08 lakh for the half year ended 30 September 2026, compared with Rs 44.74 lakh in the half year ended 30 September 2025. The same cash-flow statement records Rs 4.60 crore from the equity-share issue and Rs 1.15 crore received against share warrants, matching the Rs 5.75 crore reported as raised.

What changed in Raj Consumer Care's equity after the issue?

Raj Consumer Care's equity share capital rose to Rs 15.99 crore at 30 September 2026 from Rs 14.99 crore at 31 March 2026. The Rs 1 crore increase corresponds to the face value of 10 lakh equity shares of Rs 10 each allotted on 27 July 2026.

Other equity stood at negative Rs 5.57 crore at 30 September 2026, compared with negative Rs 12.84 crore at 31 March 2026. The company also reported total equity of Rs 10.42 crore at September-end, up from Rs 2.15 crore at the March 2026 year-end.

The utilisation filing does not say that further warrant-related receipts will be used for the unutilised Rs 2.95 crore repayment allocation or the Rs 50 lakh corporate-purpose allocation. It only records the Rs 1.15 crore upfront warrant amount received by 30 September 2026 and the full Rs 5.75 crore raised to that date.

Conclusion

Raj Consumer Care directed the full Rs 5.75 crore raised through its 27 July 2026 preferential issue to the stated objective of repaying or prepaying borrowings from promoters, promoter-group entities and directors. No proceeds had been used for the Rs 50 lakh general-corporate-purpose allocation by 30 September 2026, and the company reported no deviation or modification to the stated objects.

The next disclosed issue is whether Raj Consumer Care receives the remaining Rs 3.45 crore linked to the 10 lakh warrants and how it reports deployment of the Rs 2.95 crore still allocated to borrowing repayment and the Rs 50 lakh allocated to general corporate purpose. The filing does not provide a schedule for further warrant payments or subsequent utilisation.