• This is the 2nd RI from the company since June 2023.
• It has well diversified activities, but is still incurring losses.
• Based on its financial data, the issue is at a negative P/E.
• It operates with around half a dozen subsidiary company.
• This RI is at a discount of around 68+% to its last traded price.
• Well-informed investors may park moderate funds for long term.
PREFACE:
The RI of this company is opening on May 15, 2025, and its offer document is dated April 24, 2025, but its offer documents were made available on BSE Web only in the noon of May 14, 2025. Practice of delayed submission of required info continues unabatedly. This is the 2nd RI from the company since June 2023.
ABOUT COMPANY:
Alan Scott Industries Ltd. (ASIL) was originally incorporated in 1994 as Suketu Fashions Ltd., and changed its name to existing one in 1997. It went with its IPO for listing on OTC Stock Exchange of India in 1994. In the initial 7 years since incorporation, the Company had been engaged in manufacturing of designer socks. It launched its own brand “Alan Scott”.
Over the period, it has established about half a dozen subsidiary companies to manage its operations. Besides its original business of textiles/garments and related accessories it diversified in medical products, rredical equipments, computer software, etc.
ISSUE DETAILS:
The company is coming out with its2nd Rights Issue (RI) of 1815863 equity shares of Rs. 10 each at a fixed price of Rs. 40 per share to mobilize Rs. 7.26 cr. The RI opens for subscription on May 15, 2025, and will close on May 29, 2025. The company is asking for full money on application for the number of shares applied. The company is offering RI in the ratio of 1 for 2 to its eligible stakeholders as of the record date of May 02, 2025. Post allotment, shares will be listed on BSE. The company is spending Rs. 0.25 cr. for this RI process, and from the net proceeds, it will utilize Rs. 1.50 cr. for investment for additional equity share of its subsidiary Alan Scott Retail Ltd., Rs. 1.50 cr. for investment in additional equity shares of subsidiary Alan Scott Automation and Robotics Ltd., Rs. 1.00 cr. for investment in fresh equity shares of subsidiary Alan Scott Envirotech Pvt. Ltd., Rs. 1.50 cr. for investment in fresh equity shares of subsidiary Alan Scott Upnup Life Pvt. Ltd., Rs. 1.00 cr. for investment in fresh equity share of Metastar Media Pvt. Ltd., and Rs. 0.51 cr. for general corporate purposes. There is a garble in the issue expenses and general corporate purpose spending on the page no. 60 of the offer document.
The RI is self-managed by the company itself, and Purva Sharegistry (India) Pvt. Ltd., is the registrar to the issue. MUFG Intime India Pvt. Ltd. is the RTA for the company.
Post RI, company’s current paid-up equity capital of Rs. 3.63 cr. will stand enhanced to Rs. 5.45 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 21.79 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, it has (on a consolidated basis) posted a total revenue/net profit/ -(loss) of Rs. 1.91 cr. / Rs. – (0.06) cr. (FY22), Rs. 5.42 cr. / - (2.06) cr. (FY23), Rs. 11.90 cr. / Rs. – (3.50) cr. (FY24). For 9M o fFY25 ended on December 31, 2024, it posted a loss of Rs. – (0.86) cr. on a total revenue of Rs. 22.41 cr. The company’s financial data is given in Rs. thousands.
DIVIDEND POLICY:
The company has not declared any dividends since incorporation. 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: 539115 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 195.85 on April 30, 2025, and opened on an ex-right basis at Rs. 136.80 on May 02, 2025. Since then, it has marked a high/low of Rs. 136.80 / Rs. 107.25. The scrip last closed at Rs. 125.45 as of May 14, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 186.36 / Rs. 41.90. The counter is currently under GSM: Stage 0.
The promoters’ holding has been 63.5+% for the last three quarters ended on March 31, 2025. The counter of loss-making company is well managed above the RI to lure investors.
Review By Dilip Davda on May 15, 2025
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Dilip Davda
SEBI Registered Research Analyst – Mumbai
Registration No.: INH000003127 (Perpetual)
Email: dilip_davda@rediffmail.com
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
