Chatterbox Technologies reports no deviation in IPO fund use
Chatterbox Technologies Limited reported no deviation in the utilization of its ₹42.86 Crore IPO proceeds for the half year ended March 31, 2026. While funds were utilized across six main categories including working capital and capital expenditure, some projects faced delays. The Audit Committee reviewed the statement on April 29, 2026.
*this image is generated using AI for illustrative purposes only.
Chatterbox Technologies Limited has disclosed that there was no deviation or variation in the utilization of funds raised through its Initial Public Offer (IPO) for the half year ended March 31, 2026. The statement, reviewed by the Audit Committee on April 29, 2026, was submitted to the Bombay Stock Exchange.
The company successfully raised ₹42.86 Crores via the public issue, which opened on Thursday, September 25, 2025, and closed on Monday, September 29, 2025. Acuite Ratings and Research Limited served as the monitoring agency for the fund utilization process.
Utilization Details
The funds were allocated across various objects including capital expenditure for existing business, setting up an additional office and studio, brand building, working capital requirements, and general corporate purposes. While the company reported no deviation in the objects or purposes, progress on several capital expenditure fronts was delayed due to operational factors.
Financial Breakdown
The following table outlines the original allocation, funds utilized, and the status of each object as of March 31, 2026:
| Object | Original Allocation (₹ Crore) | Funds Utilised (₹ Crore) | Status |
|---|---|---|---|
| Capital expenditure for Existing business | 11.07 | 1.31 | Progress delayed due to hiring delays and deferred procurement. |
| Capital expenditure for additional office and studio | 7.14 | 6.10 | Office setup substantially completed; studio setup completed with a discount. Unutilised amount proposed for General Corporate Purpose. |
| Capital expenditure for Brand Building | 5.02 | 1.76 | Utilisation delayed as per 12-month contract timeline starting December 2025. |
| Meeting incremental working capital requirements | 6.33 | 5.92 | ₹0.41 Crore remains unutilised due to phased deployment. |
| General Corporate Purposes | 5.67 | 0.85 | Utilisation based on business requirements; balance pending. |
| Issue Related Expenses | 7.64 | 7.64 | Fully utilised. |
Operational Updates
Regarding the capital expenditure for the existing business, the company noted that hiring for identified positions is taking longer than anticipated. Consequently, the procurement of hardware, software, and co-working space arrangements in Bengaluru and Delhi has been deferred. For the new office and studio, the company has taken the premises on lease and completed major payments, receiving a discount on the studio setup against the estimated prospectus amount.
The Audit Committee and the auditors provided no comments on the statement of deviation or variation. The Managing Director, Rajnandan Mishra, signed the disclosure on May 18, 2026.
Will the hiring delays in Bengaluru and Delhi impact Chatterbox Technologies' revenue targets for FY2027, and what timeline has management set for completing the deferred hardware and software procurement?
How will the reallocation of unutilised studio setup funds to General Corporate Purposes affect the company's long-term content production capacity and competitive positioning?
Given that brand building expenditure is tied to a 12-month contract starting December 2025, what measurable KPIs or market share milestones is Chatterbox Technologies targeting by the contract's conclusion?
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