EBEBIX531035Preferential allotment

Monitoring agency flags deviation in use of Rs. 218.70 crore warrant proceeds, range 10-25%

CARE Ratings, monitoring agency for the Rs. 218.70 crore preferential warrant issue, shared its report for the quarter ended September 30, 2026.

By ScoutQuest · Wed 4 Nov 2026, 4:42 PM IST · 2 min read

Issue size

Rs. 218.70 crore preferential warrant issue

Deviation from stated objects

Range of deviation: 10-25%

Q1FY27 funds to working capital

Rs.46.15 crore — Rs.41.65 crore to Ebix Travels, Rs.2.23 crore to Ebix Technologies, Rs.2.27 crore to Vikas Lifecare

What has been shared

• CARE Ratings Limited, the Monitoring Agency appointed for the preferential issue of compulsorily convertible warrants, has issued its report for the quarter ended September 30, 2026.
• The warrants were allotted on January 18, 2025, giving an issue period of 18 Months from allotment.
• The issue size is Rs. 218.70 crore.
• The report is signed by Akanksha Dutta, Assistant Director, CARE Ratings.

What the Monitoring Agency says

• Deviation from the objects of the issue: Yes.
• Range of deviation: 10-25%.
• During Q1FY27, the company transferred Rs.46.15 crore towards "working capital requirements of the company, its subsidiaries, step-down subsidiaries, joint ventures, and associate entities".
• As per the monitoring account bank statement, Rs.41.65 crore was transferred to Ebix Travels Limited, Rs.2.23 crore to Ebix Technologies Limited and Rs.2.27 crore to Vikas Lifecare Limited.
• The agency states it has not received the CC account or other account statements, including purpose, break-up, counterparties and invoices, to assess working capital utilisation in these entities for the funds transferred.
• There is no major deviation observed over the earlier monitoring agency reports, and the means of finance for the disclosed objects has not changed.

What the Board's comments say

• The Board's comments state there is no deviation in the utilisation of the issue proceeds and that the Rs.46.15 crore used in Q1FY27 was towards the stated object.
• The Board states that the utilisation of this amount has been reviewed and certified by the Statutory Auditor based on the books, records and supporting documents of the Company, and that the utilisation is in accordance with the stated objects.
• On shareholder approval for material deviations from the expenditure disclosed in the offer document, the report is marked "Not applicable".

Timeline of spending

• As per the offer document dated September 28, 2024, the object relating to issue expenses was to be completed by March 2025 and the other objects by June 2026.
• Board approval has been taken to extend the timeline for utilisation of proceeds for all the objects till December 31, 2026.

How to read this

• A monitoring agency is appointed to independently track whether money raised in an issue is spent the way the offer document promised. This report is that quarterly check.
• Here the two sides differ on record: the Monitoring Agency records a deviation and says the supporting statements and invoices for the downstream transfers were not provided to it, while the Board states there is no deviation and points to a Statutory Auditor certificate.
• The report also places the deviation in the 10-25% range and notes the extension of the spending deadline to December 31, 2026.
• Points worth tracking in later reports: the supporting statements and invoices for the amounts transferred, and whether spending is completed within the extended timeline.

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