Shera Energy applies Rs 13.275 crore to working capital

Shera Energy Limited used the full Rs 13.275 crore upfront consideration from its preferential share-warrant issue for working-capital requirements by September 30, 2026, according to an auditor-certified statement. The certificate records a nil unutilised balance, no issue expenses charged to the proceeds and no deviation from the shareholder-approved object.

How much of Shera Energy’s warrant proceeds was utilised?

Shera Energy utilised all Rs 13.275 crore it had received upfront from the preferential warrant issue as at September 30, 2026. Mohata Baheti & Associates certified that the entire receipt had been applied to working-capital requirements, an object approved by shareholders at the Extra-Ordinary General Meeting on May 15, 2026.

The Rs 13.275 crore received was 25% of the Rs 53.10 crore aggregate value of the issue. Shera Energy received that upfront consideration on July 13, 2026, while the auditor’s certificate, dated November 2, 2026, reported that nothing from this amount remained unutilised at the September 30 reporting date.

Shera Energy’s issue comprises 45,00,000 warrants priced at Rs 118 each. The National Stock Exchange of India Limited gave in-principle approval for the issue on June 29, 2026, before Shera Energy received the 25% upfront payment on July 13, 2026.

The remaining Rs 39.825 crore, representing 75% of the warrant value, is receivable within 18 months from the allotment date under the terms cited in the certificate. The supplied filing does not state the allotment date, so it does not establish the calendar deadline for payment of that balance.

What did Shera Energy use the upfront warrant money for?

Shera Energy used the Rs 13.275 crore upfront receipt solely to fund working-capital requirements. The auditor’s opinion states that this was one of the objects approved by shareholders on May 15, 2026, and that there was no deviation or variation in utilisation through September 30, 2026.

The certificate does not divide the Rs 13.275 crore among inventory, trade receivables, supplier dues or another operating use. It therefore confirms the approved working-capital purpose at an aggregate level rather than identifying individual payments, counterparties or purchases financed from the warrant proceeds.

Shera Energy did not adjust any issue expenses against the Rs 13.275 crore received upfront. That disclosure means the full cash receipt, rather than a net amount after issue costs, was reported as utilised for the shareholder-approved working-capital object by September 30, 2026.

The certification was prepared for placement before Shera Energy’s board and audit committee and for stock-exchange submission under Regulation 32 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The certificate says it is restricted to that stated purpose and should not be used or distributed for another purpose without the auditor’s written consent.

How does the warrant receipt compare with Shera Energy’s cash flows?

Shera Energy’s Rs 13.275 crore warrant receipt was lower than its reported Rs 16.5482 crore net cash outflow from operating activities for the half year ended September 30, 2026. The cash-flow statement records the warrant receipt as proceeds from share application within financing activities, while the separate certificate confirms its use for working capital.

The operating cash outflow narrowed from Rs 29.0387 crore in the half year ended September 30, 2025 to Rs 16.5482 crore in the corresponding 2026 period. That was a reduction of Rs 12.4905 crore in the reported outflow, although both half-year periods showed net cash used in operating activities.

Shera Energy reported cash generated from operations of negative Rs 12.8204 crore before tax payments in the 2026 half year. Net income taxes paid were Rs 3.7278 crore, taking the reported net operating cash outflow to Rs 16.5482 crore for the period.

Working-capital movements in the September 2026 half year included a Rs 21.0029 crore increase in inventories, a Rs 19.4291 crore increase in trade receivables and a Rs 23.8154 crore increase in other current assets. These movements provide context for the stated working-capital use, but the certificate does not match the warrant funds to any particular cash-flow line item.

What did the auditor examine before issuing the certificate?

Mohata Baheti & Associates examined Shera Energy’s books of account, bank statements and relevant records before certifying utilisation of the Rs 13.275 crore proceeds. The firm also reviewed the unaudited financial results for the half year ended September 30, 2026, which it says were subject to its limited review.

The records reviewed included board and shareholder resolutions, the National Stock Exchange of India Limited’s in-principle approval and other documents produced by Shera Energy. The auditor said it obtained information and explanations considered necessary to issue the certificate on the proceeds received up to September 30, 2026.

Mohata Baheti & Associates said its examination followed the Guidance Note on Reports or Certificates for Special Purposes issued by the Institute of Chartered Accountants of India. The firm also stated that it complied with applicable ethical requirements and the Standard on Quality Control 1 requirements described in the filing.

The November 2, 2026 certificate is an opinion on whether the Rs 13.275 crore upfront receipt was used in line with the approved object. It does not assess Shera Energy’s broader liquidity, future warrant conversion, operating performance or whether the remaining Rs 39.825 crore will be received.

Conclusion

Shera Energy has documented full utilisation of the Rs 13.275 crore received upfront under its Rs 53.10 crore preferential warrant issue, with the money applied to working capital by September 30, 2026. The auditor found no unutilised balance, no issue-expense adjustment and no departure from the object shareholders approved on May 15, 2026.

The next disclosed matter is the Rs 39.825 crore balance of warrant consideration, which is receivable within 18 months from allotment. Future disclosures can show whether Shera Energy receives that 75% balance and whether its use remains within the shareholder-approved objects.