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 June 30, 2025
ZOTA · price
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Awaiting price reaction for this filing.
Zota Health Care raised Rs 123.41 crore via a Preferential Issue of equity shares and fully convertible warrants in February 2025, originally planned at Rs 188.60 crore. The issue size was cut because proposed allottee Valiant Mauritius Partners FDI Limited (an FPI) did not subscribe to its allocated 3,97,500 shares and 3,97,500 warrants (worth Rs 65.19 crore). Out of Rs 77.13 crore received so far, the company has used Rs 63.78 crore — Rs 28.94 crore for DAVAINDIA COCO expansion, Rs 9.28 crore for FOFO expansion, Rs 8.62 crore for working capital, and Rs 16.94 crore for general corporate purposes (mostly salary payments to subsidiary employees). The remaining Rs 13.35 crore unutilized is parked in ICICI Bank FDs earning 6.5% interest.
A marquee foreign investor (Valiant Mauritius Partners) pulling out is a negative signal, reducing the original issue size by about 35%. However, the company has deployed ~83% of funds actually received, showing active use for DAVAINDIA retail pharmacy expansion. Shareholders should note the pending Rs 46.28 crore from warrant conversion over the next 18 months, which will cause future equity dilution if exercised.