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• BPPL is in the business of recycled paper supply.
• Its last two fiscals' performance is on a minuscule level.
• The counter is under GSM - Stage 4 with restricted trades.
• Well-informed investors may park funds for long-term rewards as promoters' holding is 75% and the RI is at par value.
ABOUT COMPANY:
Bandaram Pharma Packtech Ltd. (BPPL) - erstwhile known as Shiva Medicare Ltd. - is now under the new management post NCLT approval and resolution arrived at with the change of name. BPPL has forayed into the paper industry since 2022 after discontinuing computer sales and AMC business. Currently, the company is into processing and supply of recycled paper. It acquires the material from indigenous and imported suppliers and supplies end products to small and medium-sized paper mills in the western and eastern regions. As of April 30, 2023, it had 27 employees on its payroll.
ISSUE DETAILS:
The company is coming out with a Rights Issue (RI) of 9000000 equity shares of Rs. 10 each at par value to mobilize Rs. 9.00 cr. The issue is opening for subscription on July 12, 2023, and will close on July 20, 2023. The company is offering RI in the ratio of 3 for 1 to eligible stakeholders as of the record date of June 30, 2023. The full amount is to be paid on the application for the number of shares applied. Post allotment, shares will be listed on BSE. BPPL is spending Rs. 0.43 cr. for this RI and from the net proceeds, it will utilize Rs. 4.41 cr. for the conversion of unsecured loans from promoters, Rs. 0.50 cr. for investment in subsidiary VSR Paper & Packaging, Rs. 1.50 cr. for the acquisition of companies to achieve inorganic growth, and Rs. 2.16 cr. for general corporate purposes.
Bajaj Capital Ltd. is the sole lead manager and Cameo Corporate Services Ltd. is the registrar of the issue.
Post-RI, BPPL's current paid-up equity capital of Rs. 3.00 cr. will stand enhanced to Rs. 12.00 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 12 cr.
FINANCIAL PERFORMANCE:
On a consolidated basis, for the last two fiscals, BPPL has posted a turnover/net profit - (loss) of Rs. NIL / Rs. - (0.01) cr. (FY22), and Rs. 18.92 cr. / Rs. 0.26 cr. (FY23). Thus it has posted minuscule performance. The sudden hike in its paid-up equity capital post-RI may face servicing issue.
DIVIDEND POLICY:
The company has not declared any dividends since 2015. It will adopt a prudent dividend policy, based on its financial performance and future prospects.
SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 524602 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 76.59 on June 05, 2023, and opened on an ex-right basis at Rs. 27.98 on July 03, 2023. Since then, it has marked a high/low of Rs. 27.98 / Rs. 7.57. The scrip last closed at Rs. 27.98 as of July 10, 2023. For the last 52 weeks, it has posted a high/low of Rs. 27.98 / Rs. 7.57.
The promoters' holding has been constant at 75% for the last three quarters ended on March 31, 2023. The counter is well managed above the par value to lure investors with a minuscule volume.
The counter is under GSM-Stage 4 and Trading is restricted.
Review By Dilip Davda on July 11, 2023
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 Bandaram Pharma Packtech Rights Issue 2023 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 Bandaram Pharma Packtech Rights Issue 2023 worth investing. The Bandaram Pharma Packtech Rights Issue 2023 Note sets the Rights Issue expectations in systematic way which tells you if Bandaram Pharma Packtech Rights Issue 2023 good to buy (good or bad / yes or no). The Rights Issue Forecast tells you weather to invest in Bandaram Pharma Packtech Rights Issue 2023 by providing Rights Issue recommendations i.e. subscribe, avoid and neutral.
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