SNSTL Networks544395Routine SEBI update

Monitoring agency reports nil deviation in use of Rs.108.00 crore preferential warrants proceeds

CARE Ratings, the monitoring agency for STL Networks' preferential warrants issue of Rs.108.00 crore, has given its report for the quarter ended September 30, 2026.

By ScoutQuest · Thu 29 Oct 2026, 10:31 PM IST · 2 min read

Issue Size (Preferential Warrants)

Rs.108.00 crore

Proceeds Utilised So Far

Rs. 2.00 crore

Deviation from Stated Objects

Nil. Range of deviation: Nil.

Loss Trend

loss widened to Rs.99 crore in FY26 from Rs.32 crore in FY25

What has been shared

STL Networks Limited has submitted the report of CARE Ratings Limited, the monitoring agency appointed for its preferential issue of convertible warrants, for the quarter ended September 30, 2026. A monitoring agency is an outside agency that checks whether money raised from investors is actually used for the purposes the company had stated.

The issue at a glance

• 4,50,00,000 convertible warrants were allotted to Twin Star Overseas Limited, the promoter, on June 20, 2026.
• The issue price is Rs. 24.00 per warrant, covering both the subscription price and the exercise price, aggregating to Rs.108.00 crore.
• Each warrant is convertible into or exchangeable for 1 fully paid-up equity share of face value Rs. 2 each.
• 25% of the issue price was received at allotment: Rs. 6.00 per warrant, aggregating to Rs. 27.00 crore.
• The balance 75% is payable when the right attached to the warrants is exercised, in one or more tranches, aggregating to Rs. 81.00 crore.
• Exercise is allowed within 18 months from the date of allotment. Warrants not exercised in that period lapse, and the amount paid at subscription on them stands forfeited.

Where the money is meant to go

• Repayment or servicing of financial facilities availed by the company: Rs. 81.00 crore.
• General corporate purposes: Rs. 27.00 crore.
• Total: Rs. 108.00 crore.

No revision in these cost estimates has been made.

Use of proceeds so far

• Rs. 2.00 crore has been utilised as per the objects specified in the offer document.
• Deviation from the objects: Nil. Range of deviation: Nil.
• There is no material deviation and no change in the means of finance for the disclosed objects.
• No major deviation from the previous monitoring agency report dated July 28, 2026, for the quarter ended June 30, 2026.
• The agency relied on a chartered accountant certificate dated October 23, 2026, along with a management certificate and bank statements.

The point the report flags for investors

Under the section asking whether any other relevant information may materially affect investor decision-making, the report notes that the company reported increased losses of Rs.99 crore in FY26 against losses of Rs.32 crore in FY25.

How a retail investor can read this

This is a routine quarterly check rather than a new event. Two things sit side by side: the money raised is being used exactly as promised, with almost all of it (Rs. 106.00 crore of the Rs. 108.00 crore) still unspent and a sizeable portion of the issue price still to come in only when the warrants are exercised; and the company's losses have grown year on year, which is relevant because a large part of the proceeds is earmarked for repaying or servicing financial facilities. The forfeiture condition is also worth noting — if the warrants are not exercised within 18 months, the shares are never issued and the subscription money already paid is forfeited.

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