Sobha Limited has released its Monitoring Agency Report for the quarter ended March 31, 2026. The report, issued by ICRA Limited, confirms that the proceeds from the company’s ₹1,999.028 crore Rights Issue are being utilized in accordance with the objects disclosed in the offer document. With no material deviation reported, the company remains on schedule with its financial objectives, including debt repayment, project funding, and general corporate purposes.
Utilization Status of Issue Proceeds
The company successfully raised a total of ₹1,999.028 crore through its Rights Issue, which concluded in July 2024. As of March 31, 2026, the cumulative amount utilized for the specified objects stands at ₹1,777.745 crore. The monitoring report highlights that the utilization process remains transparent, with no deviations observed in the deployment of funds compared to the initial projections.
Breakdown of Fund Deployment
The funds are being strategically allocated across several key areas to support the company’s growth and financial health. The primary utilization includes:
- Repayment of Borrowings: ₹905 crore has been fully utilized to settle existing debt obligations.
- Project Expenses: ₹159.933 crore has been deployed toward ongoing and forthcoming residential projects.
- Equipment & Machinery: ₹67.828 crore has been invested to enhance operational infrastructure.
- General Corporate Purposes: ₹632.092 crore has been directed toward land acquisitions, employee expenses, and marketing efforts.
Progress and Future Outlook
All identified objectives are currently on schedule, with completion timelines projected through FY2028. The remaining unutilized funds are being prudently managed, with ₹248.899 crore currently deployed in various fixed deposits across reputable banks, generating interest income to optimize shareholder value while maintaining liquidity for future project requirements.
Source: BSE
