• The company is engaged in IT segment providing all related services coupled with other services like trading in computer hardware, staffing services etc.
• The company has posted minuscule financial data for recent past.
• Based on its recent financial data and poor trading value, the issue is pricey despite being at par.
• Promoter’s holding is just 26.35%.
• Simply stay away from this pricey and dicey at par bet.
ABOUT COMPANY:
Covidh Technologies Ltd. (CTL) is engaged comprehensively in the field of information technology by designing, developing, customizing, implementing, and maintaining software solutions; to offer internet and web-based applications, sub-contracting services, and Application Service Provider (ASP) solutions. The business also includes providing recruitment, staffing, and human resource services, along with a wide range of IT-enabled services such as call center operations, data processing, medical and legal transcription, and back-office functions. Additionally, it involves the manufacturing, trading, and maintenance of computer hardware, systems, and related devices. The company may also establish and manage educational institutions focused on computer technology, and deliver consultancy, infrastructure, networking, and data center management solutions.
It is operating in a highly competitive and fragmented segment. The offer document is silent on its employee strength data.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 8085550 equity shares of Re. 10 each at par value to mobilize Rs. 8.09 cr. The RI opens for subscription on November 03, 2025, and will close on November 10, 2025. The company is offering RI in the ratio of 25 for 1 to its eligible stakeholders as of the record date of October 24, 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. The company is spending Rs. 1.00 cr. for this RI process, and from the net proceeds, it will utilize Rs. 5.07 cr. for working capital, and Rs. 2.02 cr. for general corporate purposes.
The RI is self-managed by the company itself, and Skyline Financial Services Pvt. Ltd. is the registrar to the issue.
Post-RI, company’s current paid-up equity capital of Rs. 0.32 cr. will stand enhanced to Rs. 8.41 cr.Based on the RI pricing, the company is looking for a market cap of Rs. 8.41 cr. Twenty-five fold jump in its paid-up equity capital post-RI indicates possibility of its servicing issue going forward.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has posted total income / net profit/ - (loss), of Rs. 0.00 cr. / Rs. – (0.10) cr. (FY24), and Rs. 0.27 cr. / Rs. 0.14 cr. (FY25). It has posted a minuscule financial performance for the reported periods. 25 fold jump in its paid-up equity capital post-RI may face its servicing issue. As of March 31, 2025, it had a carried forward loss of Rs. 0.42 cr., NAV at Rs. 3.03 per share and RoNW of - (1.42) cr. as of the said date. For Q1 of FY26 ended on June 30, 2025, it marked loss of Rs. – (0.002) cr. on a total income of Rs. NIL. Thus, it has been posting minuscule financial data that makes this at par issue a pricey bet.
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: 534920 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 7.84 on October 23, 2025, and opened on an ex-right basis at Rs. 7.99 on October 30, 2025. Since then, it has marked a high/low of Rs. 7.99 / Rs. 7.99. The scrip last closed at Rs. 7.99 as of October 30, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 7.99 / Rs. 1.50. The counter is currently under ESM: Stage 1. The counter has very thin volume.
The promoters’ holding has been at 26.35% for the last three quarters ended with December 31, 2024. The counter is currently trading at a discount to its issue price.
Review By Dilip Davda on October 31, 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.
