Annvrridhhi Ventures (formerly J Taparia Proj. RI review - (Avoid)

•    The company is engaged in the business of trading in agri-commodities.
•    It operates in a highly competitive and fragmented segment.
•    It posted erratic movements in its financial performance for the reported periods.
•    Three-fold post-RI equity base may pose its servicing issues.
•    The RI is aggressively priced and its better to stay away from this “High Risk/Low Return” bet.

ABOUT COMPANY:
Annvrridhhi Ventures Ltd. (formerly J Taparia Projects Ltd.) – (AVL) is involved in business of trading of agri-commodities currently being pulses in raw form like pigeon peas, chick peas etc., with an aim to expand to spices and other agricultural commodities. 

AVL is engaged in a sector that is quite competitive. Since there are no obstacles to entry in the sector, it is vulnerable to competition from new entrants. The industry is home to many active players. A significant number of unorganized and a small number of organized players provide it with fierce rivalry in industry. As of March 31, 2025, it had just 10 employees on its payroll.

ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 32400000 equity shares of Rs. 10 each at a fixed price of Rs. 15 per share to mobilize Rs. 48.60 cr. The RI opens for subscription on April 28, 2025, and will close on May 09, 2025. The company is offering RI in the ratio of 2 for 1 to its eligible stakeholders as of the record date of April 11, 2025.The company is asking for full payment on application for the number of shares applied. Post allotment, shares will be listed on BSE. The company is spending Rs. 1.15 cr. for this RI process, and from the net proceeds, it will utilize Rs. 40.78 cr. for working capital, Rs. 6.67 cr. for general corporate purposes. 

The RI is self-managed by the company and Purva Sharegistry (India) Pvt. Ltd. is the registrar to the issue. 

Post-RI, company’s current paid-up equity capital of Rs. 16.20 cr. will stand enhanced to Rs. 48.60 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 72.90 cr.  

FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has posted a total income/ net profit/ -(loss) of Rs. 0.12 cr. / Rs. – (0.01) cr. (FY22), Rs. 0.13 cr. / 0.01 cr. (FY23), Rs. 4.21 cr. /- (6.33) cr. (FY24). For H1 of FY25 ended on September 30, 2024, it earned a net profit of Rs. 0.29 cr. on a total income of Rs. 31.27 cr. Thus, the sudden boost in its top and bottom line appears to have been cooked to get fancy pricing for RI.

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: 538539 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 16.08 on April 09, 2025, and opened on an ex-right basis at Rs. 16.48 on April 11, 2025. Since then, it has marked a high/low of Rs. 17.45 / Rs. 15.00. The scrip last closed at Rs. 15.65 as of April 23, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 32.42 / Rs. 13.95. The counter is currently under GSM: Stage 0.

The promoters’ holding has been constant around 57.06% for the last three quarters ended with March 31, 2025. The counter is well managed above the RI price to lure investors.