Zen Technologies Files Monitoring Agency Report for QIP Proceeds Utilization

Zen Technologies Limited has disclosed the utilization of proceeds from its Qualified Institutional Placement (QIP) for the quarter ended March 31, 2026. The company submitted the Monitoring Agency Report to the National Stock Exchange of India and BSE Limited, confirming compliance with the regulatory requirements regarding the deployment of funds.

Issue Overview

The QIP was conducted between Wednesday, August 21, 2024, and Friday, August 23, 2024. The issue comprised equity shares with a gross proceeds size of Rs. 1,00,000.00 lakhs. Following the issue, the revised net proceeds stood at Rs. 97,950.77 lakhs, which are being monitored by CRISIL Ratings Limited. The funds were raised to support the company's operations in the aerospace and defence sector.

Utilization of Proceeds

The monitoring agency verified that the proceeds have been utilized strictly according to the disclosures made in the offer document. The primary objects of the issue included funding working capital requirements, inorganic growth through acquisitions, and general corporate purposes.

The following table details the allocation and utilization of the net proceeds as of March 31, 2026:

Sr. No.	Item Head	Amount Proposed (Rs in lakhs)	Amount Utilized (Rs in lakhs)	Total Unutilized Amount (Rs in lakhs)
1	Funding working capital requirements	41,000.00	41,000.00	Nil
2	Funding inorganic growth	35,000.00	17,141.99	17,858.01
3	General corporate purposes	21,950.77	12,234.02	9,716.75
Total	Net Proceeds	97,950.77	70,376.01	27,574.76

The report notes that the full amount allocated for working capital has been utilized, primarily for the purchase of raw materials. Funds for inorganic growth remain partially unutilized as the company evaluates strategic initiatives. General corporate purposes were utilized for capital expenditure, logistics, and strategic initiatives during the quarter.

Deployment of Unutilized Funds

As of the reporting date, the unutilized proceeds totaling Rs. 27,574.76 lakhs have been invested in fixed deposits with major banks, including ICICI Bank, Indian Bank, and Axis Bank. These investments are earning interest rates ranging from 6.15% to 6.37%, with maturity dates in August and September 2026. Additionally, a sum of Rs. 74.76 lakhs is maintained in the ICICI Monitoring Account.

Monitoring Agency Declaration

CRISIL Ratings Limited confirmed that there were no deviations from the objects of the issue and no material changes in the means of finance. The agency stated that the utilization of proceeds is consistent with the information provided by the issuer and the offer document. The Board of Directors of Zen Technologies has approved the utilization of general corporate purpose funds towards specific item heads such as capital expenditure and logistics.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.22%	-2.75%	+14.10%	+19.60%	+17.35%	+2,118.57%

Zen Technologies has expanded its defence portfolio with the launch of seven new indigenous products at the North Tech Symposium 2026 in Prayagraj. Headlining the announcements is India's first modular, AI-powered counter-drone system, designed to address the evolving threat landscape of low-cost FPVs and coordinated swarm attacks. The announcement aligns with the Government of India's vision of Atmanirbhar Bharat and reinforces the company's commitment to developing sovereign intellectual property in critical battlefield technologies.

Key Technical Capabilities

The flagship AI-powered Zen Anti-Drone System is engineered to deliver comprehensive, layered protection against hostile drone threats. The following table summarises its core technical specifications:

Parameter:	Details
Frequency Coverage:	70 MHz – 12 GHz wideband
Detection Range:	15+ km
Simultaneous Tracking:	Up to 100+ drones
Indigenous Radar Range:	Up to 20 km
Neutralization Methods:	RF jamming, GNSS jamming/spoofing, RCWS (12.7/7.62 mm) integration, air defence guns, kamikaze interceptors

At the core of the system is an intelligent Data Fusion & Command Centre, which integrates inputs from multiple sensors for precise threat classification and response.

New Product Portfolio

In addition to the anti-drone system, Zen Technologies unveiled six other advanced solutions:

Zen Suraksha: A comprehensive cybersecurity suite.
Zen Anti-Drone Simulator: A simulation platform for training.
Zen Vrishab: An Unmanned Ground Vehicle designed for combat, logistics, and casualty evacuation roles.
Smart Ammunition: 12.7mm and 30mm Airburst Solutions.
Zen HyperStrike: A Long-Range System with a range of 400+ km.
Zen Bijli: A Directed Energy Weapon (Laser System).

Multi-Configuration Deployment

The anti-drone platform is designed for seamless deployment across three key configurations, ensuring operational flexibility:

Vehicle-Mounted Configuration: Integrated onto tactical vehicles for rapid deployment and convoy protection.
Man-Portable Configuration: Lightweight and rugged for dismounted soldiers during patrols.
Fixed (Stationary) Configuration: Deployed for 24/7 surveillance of critical infrastructure and military bases.

Leadership Commentary

Commenting on the launch, Mr. Ashok Atluri, Chairman & Managing Director, Zen Technologies, stated: "Operation Sindoor exposed a hard truth: drone warfare is redefining the battlefield... At Zen Technologies, we have built exactly that advantage. This launch reinforces our commitment to advancing cutting-edge indigenous defence technologies... Our AI-powered anti-drone platform, developed under the IDDM framework with full intellectual property ownership, is a decisive response to this shift."