Monitoring Agency Report for the quarter ended June 30, 2025.
ZENTEC · price
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Crisil Ratings Limited, the Monitoring Agency, has confirmed that Zen Technologies used the QIP proceeds in line with the stated objects with no deviations or delays. Of the net proceeds of Rs 97,950.77 lakhs raised through the August 2024 QIP, Rs 62,722.24 lakhs (about 64%) has been deployed so far, leaving Rs 35,228.53 lakhs unutilized. Working capital funding of Rs 41,000 lakhs is almost fully used (Rs 40,898.11 lakhs, 99.75%), while Rs 12,105.47 lakhs of the Rs 35,000 lakhs earmarked for acquisitions has been spent, with the company picking up a controlling 54.67% stake in TISA Aerospace and increasing its holding in Vector Technics to 51% during the quarter. General corporate purposes (GCP) utilization stood at Rs 9,718.67 lakhs, with the quarter's spending covering capital expenditure, logistics and strategic initiatives. The unutilized Rs 35,228.53 lakhs is parked in fixed deposits with ICICI Bank and Axis Bank earning around 7.6–7.8%, generating Rs 2,257.79 lakhs in interest income to date.
Positive signal for shareholders: the QIP money is being put to work as planned, the bulk of working capital is already deployed, and the acquisitions in aerospace and defence businesses (TISA Aerospace, Vector Technics) align with the stated inorganic growth strategy. The large unutilized balance (over Rs 352 crore, mostly for further acquisitions) suggests more deals may be in the pipeline, which could be a growth catalyst but also carries execution risk. Parking idle funds in bank FDs at attractive rates provides a small interim return and reduces cash drag concerns.