Monitoring Agency Report for the quarter ended September 30, 2025
Price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Crisil Ratings submitted its Monitoring Agency Report on ZR2 Bioenergy's preferential issue of Compulsorily Convertible Debentures (CCDs) and Convertible Warrants, which raised a total of Rs 248.77 crore (of which only Rs 122.40 crore has actually been received so far – Rs 80.27 cr from CCDs and Rs 42.12 cr as warrant upfront, with Rs 126.37 cr still pending from warrant holders). Out of the received amount, Rs 103.90 cr has been deployed: Rs 22 cr fully used to repay an unsecured loan, Rs 79.35 cr used to acquire/expand a biorefinery in Maharashtra producing ethanol and biogas, and Rs 2.55 cr used for working capital and general corporate purposes. The remaining Rs 144.87 cr is unutilized, including Rs 18.50 cr parked as a short-term deposit with Sukhmehar Finance Pvt Ltd, a non-deposit taking NBFC. The Monitoring Agency flagged this deployment as unusual and not in line with industry practice of parking idle funds in bank FDs or liquid mutual funds, and noted the company's earlier disclosure to shareholders did not mention this mode of parking funds. The deposit's maturity has been extended from September 30, 2025 to December 31, 2025 and is earning 9% interest. The company also received Maharashtra government approval in July 2025 for a Build-Own-Operate-Transfer project at the biorefinery.
Shareholders should note that over half the planned capital (Rs 126.37 cr of warrant money) is still not in the company, which delays the biorefinery expansion. The flag by the Monitoring Agency about parking Rs 18.50 cr with a non-deposit taking NBFC — a structure not originally disclosed to shareholders — is a governance red flag that could weigh on investor confidence, even though the funds themselves have so far earned Rs 1.28 cr in interest at 9%.