Monitoring Agency Report for the quarter ended December 31, 2025 in respect of Funds raised by issuance of Convertible Warrants and Compulsory Convertible Debentures on a Preferential Basis
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Awaiting price reaction for this filing.
Crisil Ratings, acting as Monitoring Agency, has filed its report on ZR2 Bioenergy's use of funds raised via Compulsorily Convertible Debentures and Convertible Warrants on a preferential basis. The total issue size is Rs 248.77 crore, of which Rs 122.40 crore has been received so far (Rs 80.27 crore from CCDs and Rs 42.12 crore upfront on warrants), with another Rs 126.37 crore still pending from warrant holders. Out of the funds received, Rs 103.90 crore has been utilized — Rs 22 crore fully repaid unsecured loans, Rs 79.35 crore spent on acquiring and expanding a biorefinery in Maharashtra, and Rs 2.55 crore on working capital. No fresh spending happened during Q3 FY26. Of the Rs 144.87 crore unutilized, Rs 18.50 crore remains parked in a short-term deposit with Sukhmehar Finance Pvt Ltd, a non-deposit-taking NBFC, which Crisil flagged as unusual since such proceeds are normally kept in scheduled bank FDs or liquid mutual funds.
No new red flags for shareholders on project progress, but the deployment of Rs 18.50 crore with a non-deposit-taking NBFC is a mild governance concern flagged by the Monitoring Agency. The warrant holders' option to convert at Rs 65 per share looks attractive given the current market price of Rs 151.65, suggesting potential future equity dilution if all warrants are converted.