Tandhan Industries: Rs 126.76 Crore Preferential Issue Funds Fully Utilized Amid Governance Watch Rs 126.76 crore fully deployed; Rs 14.92 crore in related party transactions noted. Reader Takeaway: Capital deployed as planned, but governance and documentation require close monitoring. ## What just happened Tandhan Industries Limited has confirmed the complete utilization of Rs 126.76 crore raised through its preferential issue of equity shares and share warrants. The funds were directed towards its subsidiary, Tandhan Polyplast Limited, for capital expenditure, debt repayment, working capital, and general corporate purposes. ## Why this matters While the capital has been deployed, a monitoring agency report raised concerns about governance, particularly concerning related party transactions (RPTs) totaling Rs 14.92 crore during Q3FY26. Shareholder approval for these RPTs was obtained at the subsidiary level but not at the parent company, Tandhan Industries Limited, which could present a compliance gap. ## The backstory The preferential issue was aimed at financing the group's subsidiary, Tandhan Polyplast Limited. The company has now reported full deployment of these funds as per the stated objectives. ## What changes now Investors can be assured that the capital raised has been put to use. However, the governance observations mean the company needs to formalize its processes, especially concerning RPT approvals at the parent level and finalize documentation for significant expenditures. ## Risks to watch Key risks include outstanding lease agreement documentation for a Rs 7.5 crore security deposit, proforma invoices used for Rs 4.30 crore capital expenditure, and lack of full documentation for raw material purchases totaling Rs 3.12 crore. ## Peer comparison (No peer comparison data available in the filing). ## Context metrics (time-bound) * **Total Issue Size:** Rs 126.76 crore * **Investment in Subsidiary (CAPEX):** Rs 20.00 crore * **Repayment of Subsidiary Debt:** Rs 20.00 crore * **Working Capital (Subsidiary):** Rs 21.54 crore * **General Corporate Purpose:** Rs 20.50 crore * **Related Party Transactions (Q3FY26):** Rs 14.92 crore ## What to track next Investors should monitor upcoming filings for updates on the formalization of lease agreements, the issuance of final invoices for capital expenditures, and confirmation of complete documentation for raw material purchases. Additionally, ensuring parent-level shareholder approval for future RPTs will be crucial.