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•    ASMTL is engaged in providing engineering services and products R & D.
•    It has a global presence with offices in the UK, Canada, Mexico and Japan.
•    The company has posted growing performance in recent years. 
•    Investors should apply in this bet from a growing company.

ASM Technologies Ltd. (ASMTL) (erstwhile known as Advanced Synergic Microsystems Ltd.) is specializing in the areas of engineering services, product ER&D with successful offshore development. The company also supports centres in India and overseas. It has a global presence with offices in the UK, Canada, Mexico and Japan.  ASMTL has seven subsidiaries that are taking care of major operations of the company. 

In October 2020, ASMTL acquired the India unit of Semcon AB - Sweden. As of September 30, 2021, it had 1142 employees on its payroll. 

To part finance its needs for working capital (Rs. 10.50 cr.) and general corporate purposes (Rs. 0.55 cr.), ASMTL is offering rights issue (RI) (1000000 equity shares) in the ratio of 1 for 10 to the shareholders whose names were registered on the record date of March 21, 2022. The company has fixed a price of Rs. 115 per share and mulls mobilizing Rs. 11.50 cr. The issue is opening for subscription on March 28, 2022, and will close on April 11, 2022. Applicants will have to pay Rs. 35 on application and the balance Rs. 80 in one or more calls as decided by the company. Post allotment, shares will be listed on BSE. ASMTL is spending Rs. 0.45 cr. for this RI process.

The issue is solely lead managed by Saffron Capital Advisors Pvt. Ltd. and KFin Technologies Pvt. Ltd. is the registrar to the issue. 

Post RI, ASMTL's current paid-up equity capital of Rs. 10.00 cr. will stand enhanced to Rs. 11.00 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 126.50 cr. 

For the last two fiscals, ASMTL has (on a consolidated basis) posted turnover/net profits of Rs. 96.14 cr. / Rs. 0.70 cr. (FY20) and Rs. 140.64 cr. / Rs. 8.60 cr. (FY21). For the first half of FY22 ended on September 30, 2021, it has earned a net profit of Rs. 7.77 cr. on a turnover of Rs. 90.20 cr. 

ASMTL is a dividend-paying company. For FY22 it has paid three interim dividends totalling 60%. It will continue with its dividend policy based on its financial performance and future prospects. 

The scrip last closed on cum-right basis at Rs. 683.25 on March 16, 2022, and opened on the ex-rights basis at Rs. 651.00 on March 17, 2022. Since then, it has posted a high/low of Rs. 663.50 / Rs. 605.00 It last closed at Rs. 616.80 (on March 25, 2022) and based on this closing, its market cap on post-RI stands at Rs. 678.48 cr. It has posted the last 52 weeks high/low of Rs. 810.16 / Rs. 84.32. Its promoter's holding has been 61.84% since the last three quarters. Based on its current trading price, the RI is at a discount of around 80%.

Conclusion / Investment Strategy

The offer is priced attractively at around an 80% discount to its current trading price. Even RI money is to be paid on calls thus giving investors enough time for payment. Its financials are showing growing trends that augurs well. Investors should not miss this lucratively priced RI.

Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on March 25, 2022

Review Author

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, a freelance journalist

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: ).

More ASM Technologies Limited RI Views / Analysis / Recommendations ...

The ASM Technologies Rights Issue 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 ASM Technologies Rights Issue worth investing. The ASM Technologies Rights Issue Note sets the Rights Issue expectations in systematic way which tells you if ASM Technologies Rights Issue good to buy (good or bad / yes or no). The Rights Issue Forecast tells you weather to invest in ASM Technologies Rights Issue by providing Rights Issue recommendations i.e. subscribe, avoid and neutral.