Five-Star Business Finance Reports Nil Deviation in Fund Utilisation for Q4FY26
Five-Star Business Finance Limited reported nil deviation in fund utilisation for Q4FY26, confirming proper use of INR 31,57,00,000 raised through convertible share warrants. The company fully utilised INR 7,89,25,000 upfront consideration for working capital, while INR 17,90,25,000 balance consideration received in March 2026 remains unutilised as of quarter end.
*this image is generated using AI for illustrative purposes only.
Five-Star Business Finance Limited has submitted its quarterly compliance statement to stock exchanges, confirming no deviation or variation in the utilisation of proceeds from its convertible share warrants for the quarter ended March 31, 2026. The statement was filed pursuant to Regulation 32 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Fund Raising Details
The company had raised funds through a preferential issue of convertible share warrants on October 24, 2024. The fund raising structure is detailed below:
| Parameter: | Details |
|---|---|
| Total Issue Size: | INR 31,57,00,000 |
| Number of Warrants: | 4,10,000 |
| Price per Warrant: | INR 770 |
| Issue Date: | October 24, 2024 |
| Primary Object: | Working Capital |
Fund Utilisation Status
The company received the proceeds in two tranches, with specific utilisation patterns for each:
| Tranche: | Amount | Status | Date |
|---|---|---|---|
| Upfront Consideration (25%): | INR 7,89,25,000 | Fully Utilised | October 24, 2024 |
| Balance Consideration (75%): | INR 17,90,25,000 | Unutilised | March 23, 2026 |
The upfront consideration of INR 7,89,25,000 received towards allotment of 4,10,000 share warrants has been completely utilised for working capital purposes as originally disclosed. The balance consideration of INR 17,90,25,000 was received on March 23, 2026, towards conversion of 3,10,000 share warrants into equivalent equity shares, but remains unutilised as of March 31, 2026.
Compliance and Oversight
The quarterly statement has been duly reviewed by the company's Audit Committee, which provided no additional comments. The filing confirms that:
- No deviation occurred in the objects or purposes for which funds were raised
- No variation exists in the amount of funds utilised against original disclosure
- No changes were made to contract terms referenced in the fund raising documents
The company secretary and compliance officer, Vigneshkumar SM, digitally signed the compliance document on April 28, 2026. The statement reaffirms the company's adherence to regulatory requirements and proper utilisation of raised capital for its intended working capital needs.
Historical Stock Returns for Five Star Business Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.46% | -1.43% | +32.24% | -7.24% | -35.05% | +1.66% |
What specific working capital initiatives will Five-Star Business Finance prioritize with the recently received INR 17.9 crore balance consideration?
How might the conversion of 310,000 warrants into equity shares impact Five-Star's ownership structure and dilution for existing shareholders?
Will the remaining 100,000 unconverted warrants be exercised before their expiration, and what factors could influence this decision?
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