Intimation under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015-Clarification on Utilization of Funds under Notice of Extra-Ordinary General ....
Price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Sobhagya Mercantile has clarified to the stock exchange that the Rs. 24.41 crores portion of its Rs. 178.71 crores preferential issue of convertible warrants, earlier described as 'General Corporate Purposes, Working Capital & Business Operations,' will be used exclusively for 'General Corporate Purpose' only. The remaining Rs. 154.30 crores will be invested as equity or quasi-equity into three promoter group Special Purpose Vehicles (SPVs) executing Hybrid Annuity Model (HAM) road projects awarded by the Public Works Department, Government of Maharashtra. The HAM model offers 60% government funding during construction and fixed annuity payments over 10 years post-completion. The company also stands to earn an estimated Rs. 308.96 crores in O&M contracts from these SPVs over the project tenure, with an expected internal rate of return of around 16% on the SPV investment.
The clarification does not change the total fund raise size, but it narrows the stated use of the smaller bucket to general corporate purposes only, giving the board wider discretion on deployment. For shareholders, the key concern is that roughly 86% of the proceeds (Rs. 154.30 crores) are flowing into promoter group SPVs as a related-party deployment, which may warrant close scrutiny on pricing, governance, and the eventual returns flowing back to the listed company.