SOBHA Limited has released its monitoring agency report for the quarter ended December 31, 2025. The report, issued by ICRA Limited, confirms that the proceeds from the Rights Issue have been utilized as intended, with no deviations. The information is available on the company’s website. The report details the allocation of funds across various project expenses, borrowings and land aquisitions.
Rights Issue Proceeds Utilization
The monitoring agency, ICRA Limited, reported no deviations in the utilization of the rights issue proceeds for the quarter ended December 31, 2025. The proceeds have been used in line with the objects of the issue.
Key Details from the Report
The key highlights of the report are as follows:
- Issue Size: ₹1999.028 Crore
- Net Proceeds (as per prospectus): ₹1985.972 Crore (excluding issue-related expenses)
Note: As of December 31, 2025, ₹1984.250 Crore has been credited to the net proceeds account. The remaining balance will be monitored by ICRA for Q3FY2026.
Allocation of Funds
The funds have been primarily allocated to:
- Repayment or prepayment of certain borrowings
- Funding project-related expenses for ongoing and forthcoming projects
- Purchase of equipment and machinery
- Funding the acquisition of unidentified land parcels and general corporate purposes
Deployment of Unutilized Proceeds
As of the end of the quarter, unutilized proceeds were invested in fixed deposits with various banks, including SBM Bank, Axis Bank, DCB Bank, and RBL Bank. The total unutilized amount stands at ₹281.440 Crore with earnings of ₹1.882 Crore and a market value of ₹283.323 Crore. These deposits show returns ranging from 3.25% to 7.30%.
General Corporate Purpose (GCP) Allocation
A portion of the proceeds was allocated for general corporate purposes, including approvals, corpus repayment, employee expenses, expenditure on marketing, refundable deposits, land purchases, and information technology-related expenses. The total allocated to GCP stands at ₹632.092 Crore.
Source: BSE
