Shipwaves Online Limited Submits Q3FY26 IPO Proceeds Monitoring Report to BSE
Shipwaves Online Limited submitted its Q3FY26 monitoring agency report to BSE, showing utilization of ₹36.29 crore from its ₹56.35 crore IPO proceeds. The company fully utilized funds for working capital (₹17.13 crore) and general corporate expenses (₹8.45 crore), while partially using allocations for subsidiary investment (₹2.45 crore of ₹10.00 crore) and debt repayment (₹2.50 crore of ₹15.00 crore). The remaining ₹20.06 crore is deployed in fixed deposits and bank accounts. CARE Ratings noted concerns about fund commingling and missing board approvals, while highlighting a 40% decline in share price to ₹7.22 per share.
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Shipwaves Online Limited has submitted its quarterly monitoring agency report for the quarter ended December 31, 2025, to BSE under Regulation 32(6) of SEBI listing regulations. The report, prepared by CARE Ratings Limited as the monitoring agency, provides a comprehensive overview of how the company has utilized proceeds from its ₹56.35 crore IPO.
IPO Proceeds Utilization Overview
The company has utilized ₹36.29 crore during Q3FY26 across its stated objectives, leaving ₹20.06 crore unutilized as of December 31, 2025. The IPO, which was conducted from December 10-12, 2025, raised funds for specific purposes outlined in the offer document.
| Utilization Category | Allocated Amount (₹ crore) | Utilized Amount (₹ crore) | Remaining (₹ crore) |
|---|---|---|---|
| Working Capital Requirements | 17.13 | 17.13 | - |
| Subsidiary Investment | 10.00 | 2.45 | 7.55 |
| Debt Repayment | 15.00 | 2.50 | 12.50 |
| General Corporate Expenses | 8.45 | 8.45 | - |
| Issue Expenses | 5.77 | 5.77 | - |
| Total | 56.35 | 36.29 | 20.06 |
Key Utilization Details
Working Capital Requirements: The company fully utilized ₹17.13 crore for working capital needs, including ₹16.96 crore transferred to cash credit accounts for vendor payments (₹7.17 crore), tax payments (₹1.23 crore), and salary payments (₹0.29 crore). Additionally, ₹8.44 crore was transferred as advance to a vendor.
Subsidiary Investment: ₹2.45 crore was utilized through a loan of AED 40,37,000 to subsidiary Shipwaves Online LLC. The loan carries 8% annual interest with a 5-year tenor. The subsidiary used ₹2.45 crore for working capital payments to vendors, while ₹7.52 crore remains in the subsidiary's current account.
Debt Repayment: The company utilized ₹2.50 crore for partial repayment of HDFC cash credit facilities, as specified in the offer document.
General Corporate Expenses: The entire allocated amount of ₹8.45 crore was spent on software development charges for digital infrastructure enhancement.
Deployment of Unutilized Funds
The remaining ₹20.06 crore is deployed across various instruments:
| Investment Type | Amount (₹ crore) | Interest Rate (%) | Maturity |
|---|---|---|---|
| HDFC Bank FD | 5.00 | 4.75 | January 16, 2026 |
| Axis Bank FDs | 7.50 | 3.00-4.90 | January-March 2026 |
| Abu Dhabi Commercial Bank | 7.53 | - | - |
| Axis Public Issue Account | 0.03 | - | - |
Monitoring Agency Observations
CARE Ratings Limited noted several concerns in their assessment:
- Fund Commingling: The company transferred funds from monitoring accounts to cash credit and current accounts with multiple banks, resulting in commingling of IPO proceeds with other funds
- Missing Board Approval: The monitoring agency did not receive board approval defining quantum of funds for heads under general corporate purposes, though the company later clarified that board resolution was passed on December 15, 2025
- Share Price Decline: The company's share price declined to ₹7.22 per share as of December 31, 2025, approximately 40% lower than the issue price
Company Background
Shipwaves Online Limited operates as a logistics solution provider with promoters including Kalandan Mohammed Haris, Kalandan Mohammed Althaf, Kalandan Mohammad Arif, Abid Ali, Bibi Hajira, and Mohammed Sahim Haris. The company is based in Mangalore, Karnataka.
Compliance Status
The monitoring agency confirmed that all government and statutory approvals related to the IPO objectives have been obtained. The report indicates no material deviations from the offer document disclosures, and most utilization timelines are on track with completion dates set for March 31, 2026.
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