The monitoring agency for the Sunshine Pictures IPO has flagged a deviation in how the IPO money was used. CARE Ratings says the company paid ₹1.44 crore of GST that the offer document did not cover. The company says it got the money back on 6 October 2026.
What did the monitoring agency flag?
A monitoring agency is an outside firm that checks whether a company spends its IPO money on what it promised. Its report for the quarter ended 30 September 2026 was filed on BSE on 12 November. It is the first such report for this IPO.
The flagged amount was GST on the issue expenses of the offer for sale (OFS). In an OFS, the selling shareholders sell their shares, so those costs are theirs to pay. The prospectus did not list this as a use of the fresh issue money. CARE Ratings therefore counted it as a deviation under the working capital object.
The agency put the range of deviation at up to 10%. The ₹1.44 crore is 1.28% of the ₹112.50 crore set aside for working capital.
What does the company say?
The board's comment in the report says the amount was recovered on 6 October 2026. The agency's own text says it expects the money to come from the selling shareholders in due course. The two lines differ in timing, so the report itself is worth reading.
The company also used fresh issue money earlier for OFS issue expenses of ₹8.22 crore. The selling shareholders have reimbursed that amount.
A deviation here is a mismatch with the offer document. It is not a finding of wrongdoing. The report says the agency does not audit the figures. It relies on the company's records and a chartered accountant's certificate dated 6 November 2026.
How was the IPO money used?
The IPO had a fresh issue of ₹172.80 crore. The table shows how much was used by 30 September, in ₹ crore.
| Object | Planned | Used by 30 Sep | Unused |
|---|---|---|---|
| Working capital | 112.50 | 66.03 | 46.47 |
| General corporate purposes | 43.02 | 10.40 | 32.62 |
| Issue related expenses | 17.28 | 12.82 | 4.46 |
| Total | 172.80 | 89.25 | 83.55 |
The working capital money went to a coming film titled Samuk and to salaries, audit fees, advertising and music costs. The ₹10.40 crore under general corporate purposes paid a self-assessment tax bill.
What our data shows
The IPO was priced at ₹360 and opened at ₹395.90 on 25 August 2026. The latest price on our Sunshine Pictures IPO page is ₹446.50 on 12 November. A small tax deviation like this one is a different matter from a change in the objects themselves.
What happens next
The company must file a monitoring agency report every quarter until the money is fully used. The next one covers the quarter ending 31 December 2026. You can read the full report on BSE. More issues are listed on our mainboard IPOs page.
