Touchwood Entertainment Limited, a leading name in the entertainment sector, recently submitted a statement regarding the deviation in fund utilization for the quarter ended December 31, 2024. This statement is part of the company's compliance with Regulation 32(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, following a preferential issue of optionally convertible equity share warrants that took place on February 28, 2023.

As per the details shared, the company had raised a total of Rs. 14,28,00,000 from the preferential issue, with Rs. 7,39,50,000 coming from 25% of the warrant issue price for 29,00,000 warrants. The remaining Rs. 6,88,50,000 was raised from 75% of the warrant exercise price for 9,00,000 warrants. However, the balance 75% for 20,00,000 warrants remained unexercised, leading to Rs. 5,10,00,000 being forfeited as per the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

The company clarified that the deviation in fund utilization pertains to changes in the objects of the preferential issue as originally stated in the explanatory statement dated February 5, 2023. Shareholder approval was sought and granted for these variations on September 29, 2023. Despite these changes, the company has assured that the funds raised were used as per the revised objectives, including the expansion of the business and the acquisition of movable and immovable assets.

During the quarter ending December 31, 2024, there were no deviations in terms of fund usage. The Audit Committee reviewed the details and gave its approval for the statement, confirming that all transactions adhered to the revised terms of the preferential issue. The company's efforts to diversify and expand its operations have been in line with the revised business objectives.

As for the future of Touchwood Entertainment's warrant conversion process, the company confirmed that the remaining 20,00,000 warrants will not be converted into equity shares by the deadline of August 31, 2024, leading to the forfeiture of the corresponding funds.

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