Zerodha (Trading & Demat Account)
FREE Equity Delivery and MF
Flat ₹20/trade Intra-day/F&O
Zerodha (Trading & Demat Account)
FREE Equity Delivery and MF
Flat ₹20/trade Intra-day/F&O
|
|
• The company is in SAP consulting services, but its financial performance is not up to mark.
• It posted inconsistency in financial performance with loss for H1 of FY24.
• The issue appears greedily priced and has no match in its working.
• There is no harm in skipping this pricey RI.
ABOUT COMPANY:
Adroit Infotech Ltd. (AIL) was originally formed as Rusoday Mutual Funds Ltd. in March 1990, and changed its name to Rusoday Finance Ltd., and again to Global Fiscals Ltd. in June 1996. The name of company was further changed to Arham Fiscals Ltd., in April 1997, and to Color Chips (India) Ltd. in January 2000. Again name was changed to Sphere Global Services in October 2014, and finally to Adroit Infotech Ltd. in the same month. Thus the company has been rechristening itself frequently.
Currently it is a Specialist SAP Consulting Company, with close to two decades of experience in helping organizations significantly reduce costs and improve effectiveness and efficiency through internal process improvements using SAP products and solutions. It has consciously focused on the Large Enterprise & Mid-Market - as its area of expertise for development. As a result, the company is capable of partnering with customers right from first consultation, process analysis, and implementation - to rollouts, ongoing support, maintenance, and upgrades.
AIL's consultants have experiences from domestic as well as international projects. Ensuring the value of SAP investment takes more than software. It takes Adroit Consulting - and the expertise and skill it gained over the years. With a formidable team, deep domain and technical expertise, and innovative engagement models, Adroit Infotech can provide the depth and breadth of coverage that business demands. As a result, Adroit is a valued member of the SAP ecosystem. The offer document is silent on its employees' strength.
ISSUE DETAILS:
The company is coming out with a Rights Issue (RI) of 32501058 equity shares of Rs. 10 each with a fixed price of Rs. 15 per share to mobilize Rs. 48.75 cr. The issue opens for subscription on February 07, 2024 and will close on February 16, 2024. The company is offering RI in the ratio of 3 for 2 to its eligible stakeholders as of the record date of January 19, 2024. The company is asking for a payment of Rs. 3.75 per share (25%) on application and the rest by way of one or more call as to be decided by the company from time to time. Post allotment, shares will be listed on BSE and NSE. The company is spending Rs. 0.55 cr. for this RI process and from the net proceeds, it will utilize Rs. 17.50 cr. for business expansion, Rs. 7.55 cr. for pay-off on non-current liabilities., Rs. 6.53 cr. for working capital, Rs. 10.00 cr. for acquisitions of business in similar space, and Rs. 6.62 cr. for general corporate purposes.
This RI is self-managed by the company and Venture Capital land Corporate Investments Pvt. Ltd. is the registrar of the issue while Navigant Corporate Advisors Ltd. is the advisor to the issue.
Post-RI, company's current paid-up capital of Rs. 21.67 cr. will stand enhanced to Rs. 54.17 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 81.25 cr. (There is a mistake in post-RI outstanding capital of the company on page no. 45 of the offer document as its shows the figure of RI quantum as post-RI equity).
FINANCIAL PERFORMANCE:
The offer document has blur pages for the financial performance of the company. (page no. 47 to 58 and also page F13 to F109). However, based on the info given on page no. 128 to xxx, the company has (on a consolidated basis) posted a turnover/net profit/ - (loss) of Rs. 6.49 cr. / Rs. 0.62 cr. (FY22), Rs. 22.72 cr. / Rs. 3.78 cr. (FY23). For H1 of FY24 ended on September 30, 2023, it posted a loss of Rs. - (0.29) cr. on a total income of Rs. 10.13 cr. Thus the company has marked inconsistency and erratic financial performance for the reported periods.
DIVIDEND POLICY:
The company has not declared any dividends for the reported periods of the offer document. It will adopt a prudent dividend policy post listings of RI shares based on its financial performance and future prospects.
SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 532172 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 30.41 on January 18, 2024, and opened on an ex-right basis at Rs. 20.75 on January 19, 2024. Since then, it has marked a high/low of Rs. 20.75 / Rs. 17.89. The scrip last closed at Rs. 17.92 as of February 02, 2024. For the last 52 weeks' it has posted a high/low of Rs. 23.29 / Rs. 11.49. The counter is well managed by the vested interests above the RI pricing to tempt investors. The counter is currently under ESM Stage-2.
The promoters' holding has declined from 50.01% as of June 30, 2023, to 46.31% as of December 31, 2023.
Review By Dilip Davda on February 4, 2024
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on the information published here. My reviews do not cover GMP market and operators game plans. Any reader taking decisions based on any information published here does so entirely at their own risk. Investors should bear in mind that any investment in stock markets is subject to unpredictable market-related risks. The above information is based on RHP and other documents available as of date coupled with market perception. The author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
The Adroit Infotech Rights Issue 2024 Analysis helps you to understand about the company, offer detail, valuation, capital structure and financial performance. Our SEBI registered Rights Issue Analysts tells you if Adroit Infotech Rights Issue 2024 worth investing. The Adroit Infotech Rights Issue 2024 Note sets the Rights Issue expectations in systematic way which tells you if Adroit Infotech Rights Issue 2024 good to buy (good or bad / yes or no). The Rights Issue Forecast tells you weather to invest in Adroit Infotech Rights Issue 2024 by providing Rights Issue recommendations i.e. subscribe, avoid and neutral.
FREE Intraday Trading (Eq, F&O)
Flat ₹20 Per Trade in F&O
|
|
