Please find attached the monitoring agency report for the quarter ended March 31 2026
MOREPENLAB · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Morepen Laboratories received its quarterly monitoring report from CARE Ratings for the Rs. 200 crore QIP completed in August 2024. Of the total proceeds, Rs. 175.52 crore has been utilized as of March 31, 2026, with Rs. 13.56 crore remaining invested in debt mutual funds. The monitoring agency flagged that Rs. 1.15 crore was transferred from the monitoring account to current accounts for local disbursements, making it difficult to directly verify the end-use of funds. The medical devices development project at Baddi has a balance of Rs. 13.56 crore unutilized, with its timeline extended to March 2027 by the QIP committee. Additionally, profitability has remained subdued over the last four quarters due to margin compression in the API segment. The company also faces a Rs. 117.94 crore GST refund show cause notice, though the Himachal Pradesh High Court has granted a stay on the same.
The monitoring agency's inability to fully track Rs. 1.15 crore and the project timeline extension signal potential execution issues. Subdued API margins and the ongoing GST litigation add risk for investors despite the QIP proceeds being substantially deployed.