Sadhav Shipping uses Rs 19.25 crore of issue proceeds

Sadhav Shipping Limited reported using Rs 19.25 crore of preferential-issue proceeds by September 30, 2026, led by Rs 8.82 crore for capital investment in new boats and a vessel-purchase advance. The company reported no deviation from the stated objects of the issue, and its audit committee and statutory auditor reviewed the utilisation.

How did Sadhav Shipping use preferential-issue proceeds?

Sadhav Shipping reported Rs 19.25 crore of utilisation against a Rs 24 crore modified allocation as of September 30, 2026. Capital investment used Rs 8.82 crore, followed by Rs 5.43 crore for loan repayment, Rs 4 crore for working-capital requirements and Rs 1 crore for general corporate purposes.

The preferential issue comprised equity shares and convertible warrants, with funds raised from February 12, 2026 to February 26, 2026 and allotted on February 27, 2026. Sadhav Shipping stated that the issue was intended to raise Rs 26 crore, comprising Rs 23 crore from equity shares and Rs 3 crore from convertible warrants, while it received Rs 21 crore from equity shares and Rs 75 lakh as warrant subscription money.

What was Sadhav Shipping's largest disclosed use of funds?

Sadhav Shipping's largest disclosed use was Rs 8.82 crore for capital investment, against a Rs 12 crore allocation. The September 30, 2026 statement says the amount was paid towards construction of new boats and an advance payment to purchase a vessel.

The stated capital-investment object also covers purchase of vessels and upgrades to existing vessels. At Rs 8.82 crore, the category exceeded the disclosed Rs 5.43 crore loan-repayment use by Rs 3.39 crore and was Rs 3.18 crore below its Rs 12 crore listed allocation.

Sadhav Shipping's consolidated cash-flow statement recorded Rs 7.60 crore of purchases of property, plant and equipment and capital work in progress for April 2026 to September 2026, compared with Rs 23.38 crore in April 2025 to September 2025. That cash-flow category is not identified as preferential-issue deployment, but it shows that reported capital expenditure was lower by Rs 15.78 crore year on year.

How much did Sadhav Shipping use for loans and working capital?

Sadhav Shipping reported Rs 5.43 crore of loan repayments against a Rs 7 crore allocation and used the full Rs 4 crore allocated for working-capital requirements. The company said the working-capital amount was used for creditor payments and payments to other parties.

The Rs 5.43 crore loan-repayment utilisation was Rs 1.57 crore below the allocation shown in the September 30, 2026 statement. Separately, Sadhav Shipping's consolidated cash flow showed Rs 9.69 crore of payments of long-term borrowings in April 2026 to September 2026, compared with Rs 29.56 crore in the corresponding 2025 period.

Sadhav Shipping also reported Rs 7.05 crore of proceeds from long-term borrowings in the 2026 half year, compared with Rs 13.54 crore a year earlier. These financing cash-flow figures cover the consolidated business and are not described as uses of preferential-issue proceeds.

Did Sadhav Shipping report a deviation in fund utilisation?

Sadhav Shipping reported no deviation or variation in the use of preferential-issue proceeds for the half year ended September 30, 2026. It said the use of funds followed the objects stated in the January 12, 2026 notice for its Extraordinary General Meeting.

The audit committee reviewed the utilisation statement and the board approved it on November 4, 2026. The filing records that no monitoring agency was applicable, while the audit committee stated that proceeds had been used for the objects for which they were raised.

Suvarna & Katdare, Chartered Accountants, issued its certificate on November 4, 2026 and stated that there had been no deviation or variation through September 30, 2026. The statutory auditor reviewed the documents and statements relating to the preferential issue, while the company's audited consolidated financial results for the same half year received an unmodified audit opinion.

What discrepancy appears in Sadhav Shipping's utilisation disclosures?

Sadhav Shipping's Regulation 32 statement lists Rs 5.43 crore of loan-repayment utilisation, but the statutory auditor's certificate lists Rs 3.43 crore for the same category. Both documents are dated November 4, 2026 and both show total utilisation of Rs 19.25 crore.

The Rs 5.43 crore figure reconciles with the stated Rs 19.25 crore total when added to Rs 8.82 crore of capital investment, Rs 4 crore of working capital and Rs 1 crore of general corporate purposes. Using the Rs 3.43 crore amount printed in the auditor certificate with those other three figures would produce Rs 17.25 crore instead.

The company statement lists Rs 24 crore as the modified allocation, compared with an original Rs 26 crore allocation, including Rs 1 crore for general corporate purposes against an original Rs 3 crore. It reports no modified object and provides no explanation for the Rs 2 crore difference between the two allocation totals.

What remained against Sadhav Shipping's listed allocations?

Sadhav Shipping had Rs 4.75 crore not utilised against the Rs 24 crore modified allocation shown in its September 30, 2026 statement. This consisted of Rs 3.18 crore under capital investment and Rs 1.57 crore under repayment of loans, while the Rs 4 crore working-capital and Rs 1 crore general-corporate allocations were fully utilised.

The filing does not identify the vessel to be purchased, the number of new boats under construction or a timetable for the Rs 3.18 crore capital-investment balance. It also does not identify the loans associated with the remaining Rs 1.57 crore allocation for repayment.

Conclusion

Sadhav Shipping reported that it had used Rs 19.25 crore of preferential-issue proceeds by September 30, 2026, with vessel-related capital investment at Rs 8.82 crore as the largest category. The company also reported full use of the Rs 4 crore working-capital allocation and said its audit committee and statutory auditor found no deviation from the stated objects.

The next disclosure should clarify the conflicting Rs 5.43 crore and Rs 3.43 crore loan-repayment figures in documents dated November 4, 2026. Investors can also watch for deployment of the Rs 3.18 crore capital-investment balance for boat construction or vessel acquisition and the Rs 1.57 crore balance allocated to loan repayment.