Black Box Limited has released its Monitoring Agency Report for the quarter ended June 30, 2026, concerning the utilization of funds from its preferential issue. The report, prepared by CARE Ratings Limited, confirms that proceeds totaling Rs. 386.36 crore have been allocated in line with revised objectives, with a significant portion invested in subsidiaries and general corporate purposes. No major deviations from the disclosed objects were noted.
Monitoring Agency Report Highlights Preferential Issue Fund Utilization
Black Box Limited has submitted its Monitoring Agency Report for the quarter ending June 30, 2026. The report, prepared by CARE Ratings Limited, provides an objective overview of how funds raised through a preferential issue are being utilized. The total issue size was Rs. 386.36 crore, down from an initial Rs. 410.00 crore due to undersubscription.
Fund Allocation and Utilization
As of June 30, 2026, the company has utilized a total of Rs. 162.99 crore from the preferential issue proceeds. The primary allocation was towards ‘Investment in Subsidiaries’, with Rs. 71.70 crore utilized, leaving an unutilized amount of Rs. 169.66 crore. The object of ‘Working Capital requirement of the company’ saw Rs. 51.11 crore utilized, with Rs. 48.89 crore remaining unutilized. A portion of Rs. 40.18 crore was utilized for ‘General Corporate Purpose’, with Rs. 4.82 crore unutilized.
Compliance and Deviations
The report indicates that the utilization of funds is in line with the revised objects, which were approved by shareholders via a special resolution on March 19, 2025. The company has confirmed that the object of ‘Working capital requirement’ was added via this special resolution. The Monitoring Agency verified the utilization through bank statements, management certificates, vendor invoices, and CA certificates. There were no major deviations observed compared to the previous monitoring agency reports, and all government/statutory approvals related to the objects have been obtained.
Deployment of Unutilized Proceeds
The unutilized funds as of June 30, 2026, amounting to Rs. 223.37 crore (excluding the HDFC Preferential Issue Monitoring Account balance of Rs. 66.75 crore), have been deployed primarily in fixed deposits with the Bank of Maharashtra. These investments carry an average return on investment of approximately 2.60% to 3.75% and have a maturity date generally in July and August 2026.
Delay in Implementation
The report notes that the utilization of funds commenced from October 2024. While specific date-wise tracking for all transactions is not feasible due to the high volume, the company confirms that the raised funds have been utilized within the timelines specified in the offer document for the various tranches. The objects themselves, such as ‘Investment in subsidiaries’, ‘General Corporate Purpose’, and ‘Working capital requirement of the company’, are marked as ‘On-going’ in terms of completion.
Source: BSE
