What’s new

• Deep Health invested ₹39.98 cr from its rights issue in equity of other firms, not the promised acquisition.
• Shareholders only approved the change of objects in January 2026, months after the deviation.
• The audit committee noted the deviation but offered no comment.

Why it matters

A rights issue is a specific promise to shareholders. Deep Health's was for an acquisition that never materialised. The funds were instead used to buy equity in other companies, a move that changes the entire risk profile of the capital raise. For a nano-cap that raised more than its entire market value, the audit committee's silence is the most troubling detail.

What we’re watching

• Whether SEBI probes the material change in object clause post-facto.
• Performance and disclosure of the equity portfolio purchased with the funds.
• Any further governance fallout from the audit committee's lack of comment.

The full read

Deep Health AI India raised ₹39.98 crore from public investors in October 2025 to buy Oasis Ceramics. It didn't. Instead, the company invested the money in equity shares of other companies. The raise was 121% of Deep Health's ₹33 crore market capitalisation. It took until January 2026 for shareholders to approve the change of objects. The audit committee noted the deviation and said nothing. The company also overspent on issue expenses by ₹48.86 lakh. A rights issue is a contract. This one was rewritten after the fact, and the auditor is silent.

Primary source: BSE · NSE