The Securities Appellate Tribunal (SAT) case involving Rushil Decor Limited and Vespera Fund Limited has reached a decisive conclusion with the company's Fund Raising Committee approving the forfeiture of convertible warrants worth ₹7.43 crores. This development follows the expiry of SAT's status quo order and Vespera Fund's agreement to the forfeiture decision.

Fund Raising Committee Decision

The Fund Raising Committee of Rushil Decor's Board of Directors, in its meeting held on December 12, 2025, approved the forfeiture of ₹7.43 crores representing 25% of the amount paid on 10 lakh convertible warrants. The decision was taken due to non-receipt of the remaining 75% consideration from Vespera Fund Limited.

Background and SAT Proceedings

The case originated from Vespera Fund Limited's appeal against SEBI's order concerning Rushil Decor's convertible warrants. SAT had initially dismissed Vespera Fund's appeal against SEBI's order and extended the status quo on 1,000,000 warrants for six weeks. The latest status quo direction given by SAT for a period of two weeks by virtue of order dated November 20, 2025, expired on December 10, 2025.

Mutual Agreement on Forfeiture

Following the expiry of SAT's status quo order, Rushil Decor initiated communication with Vespera Fund Limited to determine the further course of action. The company received communication from Vespera Fund Limited agreeing to the company's decision to forfeit the warrants, paving the way for the Fund Raising Committee's formal approval.

Regulatory Compliance

The forfeiture decision has been taken in accordance with Regulation 169(3) of Chapter V of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018. This regulation governs the forfeiture of warrants when the warrant holders fail to pay the remaining consideration within the stipulated timeframe.

Impact and Next Steps

With the forfeiture now formalized, Rushil Decor will retain the ₹7.43 crores paid as 25% consideration while the 10 lakh convertible warrants will cease to exist. The company has disclosed this development under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency for all stakeholders. The matter details are also being made available on the company's website at www.rushil.com .

Rushil Decor has achieved a significant operational milestone by commencing commercial production of Jumbo Laminate Sheets Phase 2 at its new Gujarat manufacturing facility. This development marks an important expansion in the company's production capabilities within the plywood boards and laminates sector.

Production Capacity Enhancement

The completion of Phase 2 has substantially increased the company's manufacturing capacity. The following table outlines the key production parameters:

Strategic Manufacturing Expansion

The new Gujarat plant represents Rushil Decor's strategic approach to expanding its manufacturing footprint. The facility's Phase 2 operations focus specifically on jumbo laminate sheets, a key product category in the company's portfolio. This expansion enables the company to serve a broader customer base while maintaining production efficiency.

Operational Significance

The commencement of commercial production at the Gujarat facility demonstrates the company's ability to execute its expansion plans effectively. With the total capacity now reaching 2.8 million sheets annually, Rushil Decor has positioned itself to meet increased market demand for laminate products. The phased approach to production startup allows for systematic scaling and quality assurance across operations.