Monitoring Agency Report issued by CRISIL Ratings Limited for the utilization of funds raised through Preferential Issue as approved by the Board and members of the Company in their respective meetings held on January 09, 2025 and February 05, 2025, for quarter ended March 31, 2025
ZOTA · price
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Zota Health Care raised Rs 123.41 crore via a preferential issue of equity shares and fully convertible warrants in February 2025. The original issue size was planned at Rs 188.60 crore, but was cut by Rs 65.19 crore because allottee Valiant Mauritius Partners FDI Limited did not subscribe to its portion, and the company disposed of these unsubscribed shares/warrants. Of the Rs 123.41 crore, Rs 77.13 crore was received during the quarter and Rs 35.59 crore was utilized: Rs 9.28 crore on DAVAINDIA FOFO expansion, Rs 21.04 crore on DAVAINDIA COCO expansion, and Rs 5.27 crore on working capital. The General Corporate Purpose (GCP) amount of Rs 18.51 crore remains fully unutilized, earmarked for tax payments. CRISIL confirmed no deviation from stated objects, and Rs 41.50 crore of unutilized funds is parked in ICICI Bank FDs earning 6.50% interest.
The report is largely procedural and shows funds are being deployed as planned, which is mildly positive for governance. However, the undersubscribed issue and the Rs 18.51 crore untouched GCP allocation may raise questions on capital deployment efficiency. The balance Rs 46.28 crore from warrant holders, expected by August 2027, carries potential dilution risk for existing shareholders.