Bisil Plast BSE RI review - (Avoid)

•    The company is basically in trading business of plastic raw materials and related products.
•    It marked minuscule financial performance so far. 
•    Nearly 10 times post-RI equity raises alarm towards its servicing in near term.
•    Promoters holding is at ZERO, that remains major concern.
•    Though RI is at par, there is no harm in skipping this “High Risk/No Return” bet. 

PREFACE:
This is another case of offer document being made available just on the previous eve of opening of the RI. This company’s RI is opening on 18.03.25, and its LoO was made available on BSE (designated exchange) on post noon of 17.03.25, though the offer document is dated March 04, 2025, and the record date is of March 08, 2025. The average investor is unable to understand such delays in uploading the offer documents well in time to have an insight of the terms of the offer. No doubt the watch dog body is trying to liberalize RI norms, but then this kind of deliberated delay in uploading the offer document to a company that is permitted for nine- fold jump in its post-RI equity and is currently being under GSM: Stage 3, with restricted trading.   

ABOUT COMPANY:
Bisil Plast Ltd. (BPL) is primarily having objects to carry on the business of importers, exporters, dealers, distributors and merchants of plastics bottles, jars and containers and other plastic goods, articles or things capable of being manufactured from all types of plastic raw materials including low density polyethylene, high density polyethylene, cellulose acetate moulding powder, polystyrene moulding power, PET polyvinyl Chloride, Polycarbonate and polypropylene and to manufacture, import, export or otherwise deal in goods. articles or things that could be manufactured from plastic and or its other derivatives or in combination with other plastic raw materials whether for industrial or domestic use of otherwise, including waste management and recycling solutions for plastic goods. The offer document has no clear indication of exact type of business the company is engaged in. 

As of March 31, 2024, it had just 8 employees including 5 management people.

ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 486279000 equity shares of Re. 1 each at par value to mobilize Rs. 48.63 cr. The RI opens for subscription on March 18, 2025, and will close on April 11, 2025. The company is asking for full money on application for the number of shares applied. It is offering RI in the ratio of 9 for 1 to its eligible stakeholders as of the record date of March 08, 2025. Post allotment, shares will be listed on BSE. The company is spending Rs. 0.75 cr. for this RI process and from the net proceeds, it will utilize Rs. 18.82 cr. for working capital, Rs. 25.53 cr. for purchase of machinery, and Rs. 3.53 cr. for general corporate purposes.

This RI is self-managed by the company itself, and MUFG Intime India Pvt. Ltd. is the registrar to the issue.

Post-RI, company’s current paid-up equity capital of Rs. 5.40 cr. will stand enhanced to Rs. 54.03 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 54.03 cr.

FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has posted a total income/net profit of Rs. 4.04 cr. / Rs. 0.18 cr. (FY23), Rs. 4.03 cr. / Rs. 0.20 cr. (FY24). For H1 of FY25 ended on September 30, 2024, it earned a net profit of Rs. 0.02 cr. on a total income of Rs. 0.56 cr. Thus, it marked a minuscule financial performance for the reported periods. 

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. The offer document is silent on its dividend policy.

SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 531671 (FV Re. 1).
The scrip last closed on cum-right basis at Rs. 2.73 on March 06, 2025, and opened on an ex-right basis at Rs. 1.27 on March 07, 2025. Since then, it has marked a high/low of Rs. 1.54 / Rs. 1.27. The scrip last closed at Rs. 1.52 as of March 13, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 1.56 / Rs. 0.78. The counter is currently under GSM: Stage 3 with restricted trading.

The promoters’ holding has been constant at NIL% for the last three quarters ended with December 31, 2024. The counter is well managed above the par value to lure investors.