ZR2 Bioenergy Limited has submitted its Monitoring Agency Report for the quarter ended September 30, 2026, to the BSE. The report, issued by Crisil Ratings Limited, details the utilization of proceeds raised through a preferential issue. The company confirmed that the Audit Committee reviewed the report, and the Board of Directors has taken it on record.
Monitoring Agency Report Submitted for Q2 FY27
ZR2 Bioenergy Limited, formerly known as Gujchem Distillers India Limited, has officially submitted its Monitoring Agency Report for the quarter that concluded on September 30, 2026. This report addresses the utilization of funds raised through a preferential issue undertaken by the company.
Key Report Details
The report was prepared by Crisil Ratings Limited, acting as the Monitoring Agency. It has been reviewed by the company’s Audit Committee and subsequently taken on record by the Board of Directors. This submission is in compliance with Regulation 32 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and Regulation 173A of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.
Deployment of Proceeds
According to the report, the total issue proceeds amounted to ₹248.77 crore. For the quarter ended September 30, 2026, no utilization of these proceeds was reported. A significant portion of the proceeds, ₹18.50 crore, was deployed in a short-term deposit with Sukhmehar Finance Private Limited. The report highlights a deviation from the prevailing industry practice of investing in low-risk liquid instruments. Furthermore, the deployment of these funds has continued for over 21 months as of September 2026, with a Board resolution dated May 15, 2026, approving an extension for the utilization of the remaining proceeds of ₹18.50 crore. The report cautions that this deployment may have implications for the future availability of funds for the stated objects of the issue.
Object Utilization
The report details the utilization against the specific objects of the issue:
- Repayment of existing Un-Secured Loan: The original cost was ₹22.00 crore, revised cost is ₹22.00 crore, and it has been fully utilized by the December 2024 quarter.
- Acquiring a biorefinery asset and Expansion: The original cost was ₹180.00 crore, revised to ₹79.35 crore. As of the reported quarter, there has been nil utilization.
- Working Capital & General Corporate Purposes (GCP): The original cost was ₹46.77 crore, revised to ₹21.05 crore. As of the reported quarter, there has been nil utilization.
The total amount utilized as of the reported quarter stands at ₹103.90 crore out of a total revised issue proceeds of ₹122.40 crore, leaving ₹18.50 crore unutilized.
Delay in Implementation
For General Corporate Purpose, originally planned for utilization by Fiscal 2026 (₹21.05 crore), the company has cumulatively utilized ₹2.55 crore. The Board has approved an extension of the utilization period up to April 2027. No delay in utilization has been reported for the current quarter.
Source: BSE
