SOBHA Limited Reports Compliant Rights Issue Proceeds Utilization in Q3FY26 Monitoring Report

SOBHA Limited has submitted its monitoring agency report for the quarter ended December 31, 2025, demonstrating compliant utilization of its rights issue proceeds. The report, prepared by ICRA Limited as the monitoring agency, confirms no deviation from the objects disclosed in the offer document.

Rights Issue Overview

The company conducted a rights issue during June 28 to July 4, 2024, raising ₹1,999.03 crore. The net proceeds credited to the monitoring account stood at ₹1,984.25 crore as on December 31, 2025, as part payment has been received against the rights issue.

Issue Parameter	Details
Issue Period	June 28 - July 4, 2024
Issue Type	Rights Issue
Total Issue Size	₹1,999.03 crore
Net Proceeds Received	₹1,984.25 crore
Monitoring Agency	ICRA Limited

Proceeds Utilization Status

The monitoring report reveals that ₹1,744.56 crore has been utilized across various objects as of December 31, 2025, leaving ₹252.74 crore unutilized. The utilization pattern shows strategic deployment across the company's stated objectives.

Object	Allocated Amount (₹ Crore)	Utilized Amount (₹ Crore)	Unutilized Amount (₹ Crore)
Borrowing Repayment	905.00	905.00	0.00
Project Related Expenses	212.36	153.58	58.78
Equipment & Machinery	210.03	41.15	168.87
Land Acquisition & GCP	658.59	632.09	26.49
Issue Related Expenses	13.06	12.74	0.32

Complete Debt Repayment Achievement

The company has successfully completed the repayment of borrowings worth ₹905.00 crore, representing 100% utilization of the allocated amount for this object. This strategic move strengthens the company's balance sheet by reducing debt obligations.

General Corporate Purpose Deployment

Under general corporate purposes, SOBHA has deployed ₹632.09 crore across various operational requirements. The major components include:

Land Purchases: ₹206.90 crore across multiple quarters
Employee Expenses: ₹233.22 crore spanning Q2FY25 to Q1FY26
Refundable Deposits: ₹164.70 crore for operational requirements
Other Expenses: Including approvals, marketing, and IT-related expenses

Unutilized Funds Management

The company has prudently invested the unutilized proceeds of ₹252.74 crore in fixed deposits across multiple banks. These investments are generating returns ranging from 3.25% to 7.30% annually, with total earnings of ₹1.88 crore during the quarter.

Bank	Amount (₹ Crore)	Maturity Date	Interest Rate
RBL Bank	100.00	Dec 1, 2026	7.20%
DCB Bank	70.00	Nov 27, 2026	7.30%
SBM Bank	30.00	Dec 1, 2026	7.30%
SBM Bank	25.00	Nov 30, 2026	6.95%
Axis Bank	20.00	Nov 16, 2026	6.40%

Compliance and Timeline Adherence

ICRA Limited confirmed that all utilizations align with the offer document disclosures, with no material deviations requiring shareholder approval. The implementation timeline for all objects remains on schedule as per the FY2025-FY2028 timeframe outlined in the offer document. The monitoring agency found no unfavorable events affecting the viability of the stated objects, maintaining the integrity of the rights issue framework.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.43%	-0.12%	+5.36%	-1.14%	+17.67%	+223.47%

Sobha Limited has filed its Statement of Deviation or Variation of funds in proceeds of Rights Issue for the quarter ended December 31, 2025, pursuant to Regulation 32 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The statement was reviewed by the Audit Committee at its meeting held on January 16, 2026.

Rights Issue Fund Details

The company raised ₹1,999.03 crores through rights issue on July 11, 2024, with ICRA Limited serving as the monitoring agency. Out of the total funds raised, the company has utilized ₹1,744.55 crores towards the objects stated in the Letter of Offer dated June 12, 2024, leaving ₹254.48 crores unutilized as of December 31, 2025.

Parameter:	Details
Amount Raised:	₹1,999.03 crores
Date of Fund Raising:	July 11, 2024
Total Utilized:	₹1,744.55 crores
Unutilized Amount:	₹254.48 crores
Monitoring Agency:	ICRA Limited

Fund Utilization Breakdown

The company has allocated funds across five key objectives as outlined in the original Letter of Offer. The largest allocation was towards debt repayment, which has been fully utilized.

Original Object:	Original Allocation (₹ Cr):	Funds Utilized (₹ Cr):	Status:
Debt Repayment:	905.00	905.00	Fully Utilized
Land Acquisition & General Corporate:	658.59	632.09	Partially Utilized
Project Related Expenses:	212.36	153.58	Partially Utilized
Equipment & Machinery:	210.03	41.15	Partially Utilized
Issue Related Expenses:	13.05	12.73	Nearly Complete

Key Highlights

The statement indicates no deviation from the original objects for which funds were raised. The company has fully utilized the allocated amount of ₹905.00 crores for repayment or prepayment of certain borrowings. For funding acquisition of land parcels and general corporate purposes, ₹632.09 crores has been utilized out of the allocated ₹658.59 crores.

Additional Financial Information

The company has earned ₹28.70 crores as interest income from temporary investments, which has not been included in the unutilized amount calculation. Out of the ₹254.48 crores unutilized amount, ₹0.32 crores relates to issue-related expenses lying in the monitoring account.

Regulatory Compliance

The filing demonstrates Sobha Limited's adherence to regulatory requirements under SEBI guidelines. The statement confirms that there has been no deviation in the objects or purposes for which the funds were raised, and no change in terms of contracts mentioned in the fund-raising documents. The information has also been made available on the company's website at www.sobha.com for public access.