Value 360 leaves Rs 3.0364 crore capex pending after Bangalore shift

Value 360 Communications Limited (Value 360) had Rs 3.0364 crore of its Rs 4.65 crore initial public offering, or IPO, allocation for content-production infrastructure and technology pending at September 30, 2026. Value 360 said Bangalore co-working space and a reassessment of creative tools following AI-led technology adoption reduced expected capital expenditure.

What changed in Value 360’s content-production capex plan?

Value 360 said its expected spending under the content-production expansion object declined because it chose a co-working space in Bangalore instead of leased office premises. The IPO object originally covered Bangalore office infrastructure as well as tools and equipment for content production, with Rs 4.65 crore allocated to the purpose.

Value 360 also said AI-led technology for creative content creation prompted it to reassess the requirement for certain envisaged tools and equipment. The company said this spending may no longer be necessary, producing lower capital expenditure than originally budgeted; it did not disclose a revised budget, a utilisation deadline or a formal reallocation of the pending Rs 3.0364 crore.

The disclosure relates to a Rs 37.5262 crore fresh IPO issue during the half year ended September 30, 2026. Value 360 issued 38,29,200 equity shares with a face value of Rs 10 at an issue price of Rs 98 each, including a Rs 88 premium, and listed on the NSE Emerge platform on May 11, 2026.

How much of Value 360’s IPO proceeds remain unused?

Value 360 reported Rs 13.1635 crore pending across its five disclosed IPO-use objects at September 30, 2026. The largest single pending balance was Rs 5 crore for investment in influencer marketing platform ClanConnect and expanding ownership for a potential acquisition, followed by Rs 3.0412 crore for general corporate purposes.

Value 360 fully utilised the Rs 4.5 crore allocated for repayment or prepayment of borrowings. Instead of prepaying a loan against property, or LAP, which it said had a relatively lower interest rate, Value 360 said it repaid and closed unsecured loans carrying significantly higher rates; management said this was intended to reduce overall interest cost, improve margins and enhance profitability.

For working capital, Value 360 used Rs 10.6189 crore of the Rs 12.706 crore allocation, leaving Rs 2.0871 crore. The company said the balance would be utilised in due course given its expansion plans, but did not define those plans, provide a date or specify allocation between Value 360 and its subsidiaries.

Why did Value 360 choose a co-working space in Bangalore?

Value 360 chose a Bangalore co-working space rather than leased office premises and said the choice lowered capital expenditure budgeted for infrastructure. The filing does not disclose the space’s area, operating cost, contract duration or the amount of spending avoided by adopting the co-working arrangement.

The co-working decision changes the planned mechanism of spending but does not establish that the Bangalore expansion has been cancelled. Value 360 had already utilised Rs 1.6136 crore of the Rs 4.65 crore content-production allocation by September 30, 2026, while the other Rs 3.0364 crore remained classified as pending under the same IPO object.

AI-led creative-content technology was the second stated reason for lower planned capital expenditure. Value 360 did not identify the technologies, equipment categories, vendors or estimated savings involved, and did not say whether the reassessment applied only to the Bangalore operation.

How do Value 360’s unspent funds compare with its cash position?

Value 360 reported cash and cash equivalents of Rs 14.3832 crore at September 30, 2026, compared with Rs 1.4857 crore at March 31, 2026. The cash-flow statement identified Rs 13 crore of fixed deposits, Rs 76.02 lakh of cash on hand and Rs 62.31 lakh of bank balances at the September reporting date.

The cash increase followed Rs 37.5262 crore of share-capital issuance, including premium, during the half year ended September 30, 2026. Financing activities generated Rs 29.4737 crore of net cash, while operating activities used Rs 11.0646 crore and investing activities used Rs 5.5115 crore.

Total assets rose to Rs 96.83 crore at September 30, 2026 from Rs 71.6749 crore at March 31, 2026. Non-current assets increased to Rs 42.761 crore from Rs 34.3507 crore, while current assets rose to Rs 54.069 crore from Rs 37.3242 crore, including the higher cash balance.

What do Value 360’s latest results show?

Value 360 reported a Rs 3.9986 crore net loss for the half year ended September 30, 2026, compared with a Rs 5.4796 crore profit in the half year ended March 31, 2026. Revenue from operations rose to Rs 44.7953 crore from Rs 33.6597 crore across those respective half-year periods.

The company wrote off Rs 5.5767 crore of trade receivables outstanding for more than three years after assessing them as unrecoverable. Its statutory auditor highlighted that the Rs 3.9986 crore loss was primarily attributable to bad debts of Rs 5.5767 crore, while stating that its limited-review conclusion was not modified.

Cost of services increased to Rs 17.1017 crore in the September 2026 half year from Rs 4.769 crore in the March 2026 half year, while other expenses increased to Rs 15.4351 crore from Rs 5.337 crore. Finance costs declined to Rs 1.3673 crore from Rs 2.4343 crore, alongside the company’s disclosed repayment of higher-interest unsecured loans.

Conclusion

Value 360’s filing shows that Rs 3.0364 crore of the IPO allocation for content-production infrastructure and technology remained pending at September 30, 2026. The Bangalore co-working decision and reassessment of equipment after AI-led technology adoption explain why expected capital expenditure is lower, but the company has not disclosed an alternative use or a revised capex budget.

The next disclosure to watch is utilisation of the Rs 13.1635 crore pending across IPO objects, including Rs 5 crore for ClanConnect-related investment and ownership expansion, Rs 3.0412 crore for general corporate purposes and Rs 2.0871 crore for working capital. Value 360 said the working-capital balance would be used in due course, without providing a timetable for it or for the remaining content-production allocation.