• The company is primarily engaged in the business of trading various steel products.
• It has marked de-growth in its top lines for the reported periods.
• The company has posted inconsistency in its bottom lines for the said periods.
• Based on its recent financial data, the issue is aggressively priced.
• The company is operating in a highly competitive and fragmented segment.
• There is no harm in skipping this pricey and dicey “High Risk/Low Return” bet.
ABOUT COMPANY:
Ashnisha Industries Ltd. (AIL) is into business of trading of various steels products. The Products offered by the company are wide and have application in various fields. The Company seeks to expand and enhance presence in existing business by identifying markets where it can provide cost effective, technically advanced products to customers. It plans to cater to various customers from different geographical locations. The Company would also aim to build-up its sales force which will enable it to effectively market products.
The Company has marketing and sales distribution channel all over India. Company has in place a Dealer Policy Manual which guides on the method of selection of dealers, criteria used to select, setting commercial terms and monitoring of performance. Company has a Dealer Price List which are circulated to all Authorized Dealers and revised/reviewed from time to time. Company will focus on dealer promotional activities, training and providing after sales service support while actual counter sales will be done by the dealers/shopkeepers. Company will spend reasonable amount in marketing and infrastructure projects to reach out to more customers.
The company is also planning to set up a Solar Power Plant of 3 MW in a phased manner, for the same, the company has received approval from Gujarat Energy Development Authority and has entered into a Power purchase agreement with Uttar Gujarat Vij Company Limited for setting up of 1.5 MW project. Company has been allotted land for this project and started its development; company has also placed order with the EPC Company who is going to deliver Solar Panel and other equipment and provide for its installations thereof. The funds are being raised for setting up and development of the remaining 1.5 MW project. The offer document is silent on its employees’ strength.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 164125000 equity shares of Re. 1 each at a fixed price of Rs. 3 per share to mobilize Rs. 49.24 cr. The RI opens for subscription on October 14, 2025, and will close on November 03, 2025. The company is offering RI in the ratio of 13 for 8 to its eligible stakeholders as of the record date of October 06, 2025. The company is asking for full money on application for the number of shares applied. Post allotment, RI shares will be listed on BSE SME. The company is spending Rs. 0.75 cr. for this RI process, and from the net proceeds, it will utilize Rs. 15.00 cr. for funding solar power project, Rs. 23.00 cr. for working capital, and Rs. 10.49 cr. for general corporate purposes.
The RI is self-managed by the company itself, and Purva Sharegistry (India) Pvt. Ltd. is the registrar to the issue.
Post-RI, company’s current paid-up equity capital of Rs. 10.10 cr. will stand enhanced to Rs. 26.51 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 79.54 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has posted total income / net profit, of Rs. 14.87 cr. / Rs. 0.96 cr. (FY24), and Rs. 10.62 cr. / Rs. 0.17 cr. (FY25). As per unaudited results filed with the exchange, for Q1 of FY26 ended on June 30, 2025, it earned a net profit of Rs. 0.12 cr. on a total income of Rs. 0.85 cr. against net profit of Rs. 0.05 cr. on a turnover of Rs. 1.50 cr. for corresponding previous period. While it marked degrowth in its top lines for the reported periods, its inconsistency for bottom line raises alarm.
DIVIDEND POLICY:
The company has not paid any dividends for the reported periods. It will adopt a prudent dividend policy, based on its financial performance and future prospects. However, offer document is silent on its dividend policy.
SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 541702 (FV Re. 1).
The scrip last closed on cum-right basis at Rs. 3.36 on October 03, 2025, and opened on an ex-right basis at Rs. 3.34 on October 06, 2025. Since then, it has marked a high/low of Rs. 3.34 / Rs. 3.04. The scrip last closed at Rs. 3.06 as of October 10, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 4.79 / Rs. 2.62.
The promoters’ holding has been constant at 17.35% for the last three quarters ended with June 30, 2025. The counter is well maintained above the RI price to tempt investors.
Review By Dilip Davda on October 11, 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.
