Sheetal Universal deploys Rs 25.45 crore warrant proceeds

Sheetal Universal Limited deployed all Rs 25.45 crore received from its preferential issue of convertible warrants by September 30, 2026, including Rs 20.33 crore for working capital and Rs 5.12 crore for general corporate purpose. The utilisation certificate dated November 5, 2026 reported no deviation or variation in the use of those proceeds.

How did Sheetal Universal use the warrant proceeds?

Sheetal Universal used the full Rs 25.45 crore available from the preferential issue as of September 30, 2026. The certificate records Rs 20.33 crore of utilisation for working-capital requirements and Rs 5.12 crore for general corporate purpose, with no unutilised balance from the funds received by that date.

The company received the Rs 25.45 crore in three stated components connected with 14.20 lakh convertible warrants. These comprised Rs 7.46 crore as the upfront 25% warrant-subscription amount, Rs 8.19 crore as 75% conversion money for 5.20 lakh warrants, and Rs 9.80 crore described as part of the remaining 75% amount for 14.20 lakh share warrants. Sunit M Chhatbar & Co said it reviewed documents, bank statements, books of account and information provided by management for its certificate.

What share of the proceeds went to working capital?

Working capital received Rs 20.33 crore, the largest use of the Rs 25.45 crore available by September 30, 2026. The original working-capital allocation was Rs 23.00 crore, compared with Rs 5.12 crore for general corporate purpose and Rs 1.70 crore for machinery purchases.

The Rs 20.33 crore available for working capital was fully utilised, while Rs 2.68 crore of the original Rs 23.00 crore allocation had not yet become available at September 30, 2026. The certificate states that issue proceeds would be received in tranches and that the funds needed on different dates could vary, which is why it describes the intended uses as broad ranges.

The consolidated cash-flow statement for the half year ended September 30, 2026 reported an inventory increase of Rs 17.27 crore and a receivables increase of Rs 1.96 crore. Cash generated from operations was negative Rs 5.57 crore, and net cash used in operating activities was negative Rs 7.83 crore, compared with negative Rs 2.25 crore in the corresponding half year ended September 30, 2025.

Were any warrant proceeds used for machinery?

No preferential-warrant proceeds were available for machinery and none were utilised for that object as of September 30, 2026. The certificate lists an original machinery allocation of Rs 1.70 crore, but records nil funds available and nil actual utilisation against that allocation.

The Rs 1.70 crore shown in the remarks or unutilised-balance column is distinct from cash retained from the proceeds already received. Sheetal Universal had deployed all Rs 25.45 crore received, while the difference between the Rs 29.82 crore total planned allocation and funds received was Rs 4.38 crore, comprising Rs 2.68 crore for working capital and Rs 1.70 crore for machinery.

The certificate does not state whether machinery was purchased using another funding source. Separately, Sheetal Universal's consolidated cash-flow statement records fixed-asset purchases of Rs 4.07 lakh for the half year ended September 30, 2026, compared with Rs 22.77 lakh in the corresponding period of 2025.

Was there any deviation in the use of proceeds?

No deviation or variation in the use of preferential-issue proceeds was reported for the half year ended September 30, 2026. Sunit M Chhatbar & Co made that statement in the certificate dated November 5, 2026, covering the utilisation of the Rs 25.45 crore received by the reporting date.

The certificate assesses utilisation against three disclosed objects: machinery, working capital and general corporate purpose. General corporate purpose had an original allocation of Rs 5.12 crore, and Sheetal Universal had received and used the same Rs 5.12 crore amount by September 30, 2026.

The no-deviation statement applies to proceeds received and used, rather than confirming that the entire Rs 29.82 crore planned allocation had been funded. At September 30, 2026, the certificate shows Rs 25.45 crore received and utilised, leaving Rs 4.38 crore across the two allocations for working capital and machinery still without funds available.

What do the half-year financial results show alongside utilisation?

Sheetal Universal reported consolidated revenue from operations of Rs 124.42 crore for the half year ended September 30, 2026, compared with Rs 48.08 crore in the corresponding half year ended September 30, 2025. Profit for the period was Rs 6.65 crore, up from Rs 1.52 crore in the earlier half year, according to results approved by the board on November 5, 2026.

Finance costs were Rs 1.68 crore for the 2026 half year, compared with Rs 1.12 crore a year earlier. Net cash generated from financing activities was Rs 12.73 crore, versus Rs 1.65 crore in the corresponding 2025 period, while cash and cash equivalents stood at Rs 1.78 crore on September 30, 2026, compared with Rs 42.27 lakh on September 30, 2025.

The financial statements identify Sheetal Universal as having one reportable business segment under Accounting Standard 17, or AS-17, on segment reporting. The utilisation certificate is a separate review of proceeds from the 14.20 lakh convertible warrants, and its Rs 25.45 crore deployment figure should be read as an issue-proceeds measure rather than as the company's total financing cash flow.

Conclusion

Sheetal Universal had used every rupee of the Rs 25.45 crore received from its convertible-warrant issue by September 30, 2026. Working capital accounted for Rs 20.33 crore, general corporate purpose accounted for Rs 5.12 crore, and the certifying accountant reported no deviation or variation from the disclosed objects during the half year.

The next disclosure to watch is whether further warrant-conversion receipts are received in tranches, as contemplated in the certificate. Those receipts would relate to the Rs 4.38 crore gap between the Rs 29.82 crore original allocation and the Rs 25.45 crore received by September 30, 2026, including Rs 2.68 crore for working capital and Rs 1.70 crore for machinery.