7Seas Entertainment Limited has announced its plan to appoint a SEBI registered monitoring agency to oversee the utilization of proceeds from its proposed preferential issue of equity shares. The disclosure was made on February 11, 2026, in compliance with regulatory requirements.

Regulatory Compliance Framework

The appointment is being made pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The monitoring agency will ensure compliance with Regulation 32 of the SEBI (LODR) Regulations, 2015, along with applicable provisions of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

Board Approval Process

The appointment of the monitoring agency will be placed before the Board of Directors for consideration and approval in the ensuing board meeting, which is scheduled to be convened shortly. The company has indicated that this appointment is a mandatory requirement for the proposed preferential issue.

Timeline and Further Disclosures

Upon receiving approval from the Board of Directors, 7Seas Entertainment Limited has committed to making additional disclosures to the stock exchanges regarding the monitoring agency appointment. These disclosures will be made within the prescribed timelines as mandated by SEBI regulations.

The monitoring agency will play a crucial role in ensuring that the proceeds from the preferential issue are utilized in accordance with the stated objectives and regulatory requirements. This appointment demonstrates the company's commitment to maintaining transparency and regulatory compliance in its capital raising activities.

7Seas Entertainment Limited, a company listed on the Bombay Stock Exchange (BSE), has announced significant corporate actions following a board meeting held on September 5, 2025. The company has approved an increase in its authorized share capital and plans to issue securities through preferential allotment.

Authorized Share Capital Increase

The board has approved raising the company's authorized share capital from Rs. 23.00 crores to Rs. 25.00 crores. This increase will expand the number of equity shares from 2.30 crore to 2.50 crore, with each share having a face value of Rs. 10.00.

Preferential Allotment of Securities

7Seas Entertainment plans to issue up to 21.65 lakh securities through preferential allotment, divided into three categories:

1. Up to 13.75 lakh convertible warrants at Rs. 80.00 each to promoters and non-promoters.
2. Up to 6.00 lakh equity shares at Rs. 80.00 each to non-promoters.
3. Up to 1.90 lakh equity shares at Rs. 80.00 each by converting unsecured loans from promoters.

The total value of this preferential issue amounts to approximately Rs. 17.32 crores. Post-allotment, assuming full subscription and conversion of warrants, the promoter holding is expected to be 29.94%, while public holding will be 70.06% of the share capital.

Board Changes and Resignations

The company announced the resignations of two directors:

1. Mr. B. Mohan Rao, Non-Executive Non-Independent Director
2. Mrs. C. Sita Visalakshi, Non-Executive Independent Director

Both directors cited professional responsibilities and personal reasons for their resignations, effective September 5, 2025.

Other Key Decisions

• Reappointment of M/s Sathuluri & Co. as statutory auditors for a five-year term, subject to shareholder approval.
• Increase in the remuneration of Mr. L. Maruti Sanker, the Managing Director.
• Scheduling of the 34th Annual General Meeting (AGM) for September 30, 2025, to be held through video conferencing.
• Reconstitution of various board committees following the director resignations.

Financial Implications

The preferential issue is expected to bring in fresh capital, potentially strengthening the company's financial position. The conversion of unsecured loans into equity may also help in reducing the company's debt burden.

These corporate actions reflect 7Seas Entertainment's efforts to restructure its capital, possibly to fund growth initiatives or strengthen its balance sheet. Shareholders and potential investors should closely monitor these developments and their potential impact on the company's future performance.