Scrip ID
ZAPPFRESH
Key Quantitative Figures
- IPO Size: 59,06,400 equity shares
- Amount Raised: ₹59.06 Crore
- IPO Date: October 06, 2025
- Listing Date: October 09, 2025
- Reporting Period: Quarter 2 ended September 30, 2026 (FY 2026-27)
- Monitoring Agency: Care Ratings Limited
- Monitoring Report Date: November 13, 2026
Fund Utilization Status as of September 30, 2026
Capital Expenditure Requirement
- Original Allocation: ₹10.68 Crore
- Funds Utilized: ₹10.18 Crore
- Q2 FY27 Utilization: ₹4.53 crore towards capital expenditure on cold storage operated by the company
- Remarks: Utilization based on actual business requirements; rest of unutilized amount to be used in next quarters
Marketing Expenditure
- Original Allocation: ₹15.00 Crore
- Funds Utilized: ₹14.98 Crore
- Q2 FY27 Utilization: ₹6.38 crore for online/offline advertising and performance marketing
- Intended Use: Entire amount was to be utilized towards "Advertisement through HT Media Platform"
- Actual Use: Funds used through Google ads, Facebook ads, offline marketing, and other performance marketing channels
- Remarks: Utilization based on actual business requirements; rest of unutilized amount to be used in next quarters
Working Capital Requirement
- Original Allocation: ₹25.00 Crore
- Funds Utilized: ₹24.83 Crore
- Q2 FY27 Utilization: No amount utilized for working capital during Q2 FY27
- Implementation Schedule Deviation: Company was expected to deploy ₹12.50 crore in FY26 and ₹12.50 crore in FY27, but had already utilized ₹24.83 crores by September 30, 2026
Unidentified Acquisition & General Corporate Purposes
- Original Allocation: ₹2.18 Crore
- Funds Utilized: ₹2.12 Crore
- Q2 FY27 Utilization: No amount utilized for general corporate purposes during Q2 FY27
- Implementation Schedule Deviation: ₹1.09 crore was to be deployed during FY26 and ₹1.09 crore during FY27, but had already utilized ₹2.12 crore by September 30, 2026
Issue Related Expenses
- Original Allocation: ₹6.21 Crore
- Funds Utilized: ₹6.14 Crore
- Q2 FY27 Utilization: No amount utilized for issue related expenses during Q2 FY27
Specific Deviations Noted
1. Timing Deviation: Significant excess utilization in Working Capital Requirement and Unidentified Acquisition & General Corporate Purposes beyond the planned implementation schedule outlined in the offer document.
2. Marketing Channel Deviation: Funds under "marketing expenditure" were utilized through channels (Google ads, Facebook ads, offline marketing) not specifically covered under the intended "Advertisement through HT Media Platform".
3. Related Party Transactions: During FY26, the company advanced ₹47.33 lakh to Managing Director Deepanshu Manchanda and ₹203.10 lakh to Director Priya Aggarwal without complying with Section 185 of the Companies Act, 2013. Outstanding balances as at March 31, 2026 were ₹40.25 lakh and ₹34.75 lakh respectively.
Regulatory Actions
- Shareholder approval for loans, guarantee or security under section 185 of the Companies Act, 2013 up to ₹100 crores was obtained through an Extra-Ordinary General Meeting held on July 25, 2026.
Board Comments on Deviation
1. Timing of Utilization: The proposed amounts under various heads were estimates, and actual utilization timing depends on multiple business factors.
2. Marketing Expenditure: The company intended to do branding through social media platforms as per prospectus, and utilized funds through HT Media and other channels based on estimated returns from each channel.
3. Director Advances: Advances were provided to Directors for distribution towards various office-related expenses including travelling expenses, staff welfare expenses, repairs and maintenance, and other operational expenses. Expenses were subsequently accounted for based on supporting documents.
Governance Review
- Audit Committee noted the observations of Monitoring Agency and management explanations thereon.
- Auditors' comments: Nil
- The deviation is not pursuant to change in terms of a contract or objects approved by shareholders.