MONITORING AGENCY REPORT FOR THE QUARTER ENDED 31ST MARCH, 2026
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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Crisil Ratings Limited has submitted the quarterly monitoring report for ZR2 Bioenergy's preferential issue proceeds. The original issue size of Rs. 248.77 crore has been reduced to Rs. 122.40 crore after 75% of warrant subscription was forfeited due to non-exercise of conversion rights. Of the revised proceeds, Rs. 103.90 crore has been utilized, leaving Rs. 18.50 crore unutilized. The monitoring agency has flagged a qualification that the company deployed Rs. 18.50 crore in a short-term deposit with Sukhmehar Finance Private Limited (an NBFC), deviating from industry practice of using bank fixed deposits or low-risk mutual funds. Additionally, this deployment was not disclosed in the shareholder notice. The biorefinery acquisition and expansion costs were revised down from Rs. 180 crore to Rs. 79.35 crore, and working capital/GCP costs from Rs. 46.77 crore to Rs. 21.05 crore, reflecting the reduced capital base.
The forfeiture of warrants and revision of issue proceeds reduces the capital available for the biorefinery expansion project, potentially impacting growth plans. The unutilized funds sitting with an NBFC, rather than safer instruments, represents elevated risk for shareholders. The deviation from disclosed deployment plans raises governance concerns.