NewsChandan Healthcare Submits Monitoring Agency Report for Preferential Issue of Fully Convertible Warrants for Quarter Ended March 31, 2026Chandan Healthcare Submits Monitoring Agency Report for Preferential Issue of Fully Convertible Warrants for Quarter Ended March 31, 2026
Chandan Healthcare Limited has submitted the Monitoring Agency Report for the quarter ended March 31, 2026, covering the utilisation of proceeds from its preferential issue of fully convertible warrants with a total issue size of Rs 1,04,13,00,000. Crisil Ratings Limited, acting as the Monitoring Agency, confirmed that Rs 16,93,07,881 was utilised during the quarter — Rs 12,17,53,881 towards Business Expansion and Rs 4,75,54,000 towards General Corporate Purposes — with Rs 87,19,92,119 remaining unutilised. Of the unutilised amount, Rs 78,09,75,000 representing 75% of the warrant issue size is yet to be received from warrant holders, payable upon conversion into equity shares by July 28, 2027. No deviations from the objects of the issue were reported, and unutilised proceeds have been deployed in a fixed deposit with ICICI Bank and maintained in the preferential issue account.
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Chandan Healthcare Limited has filed the Monitoring Agency Report for the quarter ended March 31, 2026, with the National Stock Exchange of India Ltd., pursuant to Regulation 32(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Regulation 162A and Schedule XI of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The report, prepared by Crisil Ratings Limited as the designated Monitoring Agency, pertains to the utilisation of proceeds from the company's preferential issue of fully convertible warrants. The report has been reviewed by the Audit Committee and approved by the Board of Directors of the company.
Issue Overview
The preferential issue was conducted on February 3, 2026, with a total issue size of Rs 1,04,13,00,000. The issue comprised fully convertible warrants, with the company having received 25% of the total issue proceeds at the time of allotment. The remaining 75%, amounting to Rs 78,09,75,000, is yet to be received and shall be payable by the warrant holders upon conversion of warrants into equity shares within 18 months from the date of allotment, i.e., by July 28, 2027, as per the notice to shareholders.
The key details of the issue are summarised below:
| Parameter: | Details |
|---|---|
| Issue Period: | February 3, 2026 |
| Type of Issue: | Preferential Issue (PI) |
| Type of Securities: | Fully Convertible Warrants |
| Issue Size: | Rs 1,04,13,00,000 |
| Monitoring Agency: | Crisil Ratings Limited |
| Warrant Issue Price: | Rs 234/- per share |
| Market Price (May 07, 2026): | Rs 251/- per share |
Utilisation of Issue Proceeds
During the quarter ended March 31, 2026, the company utilised a total of Rs 16,93,07,881 out of the received proceeds. The utilisation was spread across two objects — Business Expansion and General Corporate Purposes — while no amount was deployed towards Acquisitions during the reported quarter. The following table presents the object-wise progress in utilisation:
| Item Head: | Amount as per Offer Document (Rs) | Amount Utilised During Quarter (Rs) | Total Utilised (Rs) | Total Unutilised (Rs) |
|---|---|---|---|---|
| Business Expansion: | 44,50,00,000 | 12,17,53,881 | 12,17,53,881 | 32,32,46,119 |
| Acquisitions: | 50,00,00,000 | - | - | 50,00,00,000 |
| General Corporate Purposes: | 9,63,00,000 | 4,75,54,000 | 4,75,54,000 | 4,87,46,000 |
| Total: | 1,04,13,00,000 | 16,93,07,881 | 16,93,07,881 | 87,19,92,119 |
As noted in the report, during the quarter ended March 31, 2026, out of the utilised proceeds of Rs 16,93,07,881, an amount of Rs 12,17,53,881 was transferred to current accounts of the company for utilisation towards Object 1: Business Expansion for operational ease, and the transferred proceeds were fully utilised as at the end of the reported quarter. The General Corporate Purposes utilisation of Rs 4,75,54,000 pertained to payment of professional fees, as per the notice to shareholders.
Deployment of Unutilised Proceeds
The unutilised proceeds received by the company have been deployed in fixed deposits and maintained in the preferential issue account. The deployment details as at March 31, 2026 are as follows:
| Instrument: | Amount Invested (Rs) | Maturity Date | Earnings as on March 31, 2026 (Rs) | Return on Investment | Market Value (Rs) |
|---|---|---|---|---|---|
| Fixed Deposit in ICICI Bank: | 7,31,06,811 | 25-02-2029 | 56,119 | 6.5 | 7,31,62,930 |
| Balance in Preferential Issue Account: | 1,79,10,308 | - | - | - | 1,79,10,308 |
| Total: | 9,10,17,118 | - | 56,119 | - | 9,10,73,238 |
Monitoring Agency Observations
Crisil Ratings Limited confirmed that the utilisation during the quarter is as per the disclosures in the notice to shareholders, with no deviation from the objects of the issue. The Monitoring Agency reported no material deviations, no changes in the means of finance, no major deviations over earlier monitoring agency reports, and no unfavorable events affecting the viability of the objects. No revision in the cost of any object was observed. The report was prepared on the basis of management undertakings, a statutory auditors' certificate dated May 07, 2026 issued by M/s MSNT & Associates LLP, Chartered Accountants (Firm Registration Number: 018542C), notice to shareholders, and bank statements.
Compliance and Regulatory Context
The report was submitted to the National Stock Exchange of India Ltd. on May 12, 2026, by Rajeev Kumar Nain, Company Secretary and Compliance Officer of Chandan Healthcare Limited. The Monitoring Agency Report was issued by Crisil Ratings Limited on May 11, 2026, and signed by Shounak Chakravarty, Director, Ratings (LCG). The report is also available on the company's website. No delay in implementation of the objects was reported, and no government or statutory approvals were identified as pending for the objects of the issue.
Historical Stock Returns for Chandan Healthcare
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.32% | -3.85% | -5.27% | -22.50% | +31.73% | +40.58% |
Will Chandan Healthcare's warrant holders exercise their conversion rights before the July 2027 deadline, and what factors — such as stock price performance relative to the Rs 234 issue price — might influence their decision?
How will Chandan Healthcare deploy the Rs 50 crore earmarked for acquisitions, and what types of targets in the healthcare sector is the company likely to pursue?
Given that only ~16% of total issue proceeds have been utilised in the first quarter, can Chandan Healthcare realistically execute its business expansion plans within the 18-month warrant conversion window?
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