Darshan Orna BSE RI review - (Not Rated)

•    The company is engaged in wholesaling jewellery and ornaments.
•    It marked minuscule financial data with inconsistency for reported periods.
•    Largely it is having a trading business in jewellery and ornaments.
•    Based on its recent financial data, the RI is aggressively priced. 
•    There is no harm in skipping this risky bet at an aggressive value.

ABOUT COMPANY:
Darshan Orna Ltd. (DOL) is operating as a wholesaler of jewellery and ornaments. Apart from wholesale distribution, it also engages in trading and the business of retailing readymade gold and silver jewellery and ornaments. Its product portfolio includes gold and silver jewellery, both with and without studded precious and semi-precious stones. The company caters jewellery and ornaments to meet the demand for traditional, modern, and Indo-Western jewellery styles across India. Given the regional diversity of tastes and preferences, DOL’s diverse portfolio of jewellery is designed to cater to the varied preferences of customers. Its portfolio is divided into the categories such as • 20% Traditional Jewellery, • 40% Modern Jewellery, • 40% Indo-Western Jewellery. As of March 31, 2025, it had just 7 employees on its payroll.

ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 50029335 equity shares of Rs. 2 each at a fixed price of Rs. 3 per share to mobilize Rs. 15.01 cr. The RI opens for subscription on November 13, 2025, and will close on November 21, 2025. The company is offering RI in the ratio of 1 for 1 to its eligible stakeholders as of the record date of October 31, 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. 0.25 cr. for this RI process, and from the net proceeds, it will utilize Rs. 14.51 cr. for working capital, and Rs. 0.25 cr. for general corporate purposes. 

The RI is self-managed by the company itself, and KFin Technologies Ltd. is the registrar to the issue. 

Post-RI, company’s current paid-up equity capital of Rs. 10.01 cr. will stand enhanced to Rs. 20.01 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 30.02 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has posted total income / net profit/ - (loss), of Rs. 14.00 cr. / Rs. 0.06 cr. (FY23), Rs. 24.31 cr. / Rs. 2.67 cr. (FY24). For 9M of FY25 ended on December 31, 2024, it earned a net profit of Rs. 0.43 cr. on a total income of Rs. 13.32 cr., against a net profit of Rs. 1.37 cr. on a total income of Rs. 17.49 cr. for corresponding previous period. It has posted a declining top and bottom lines for the period ended December 31, 2024. It has given links for its latest financial data for FY25 and H1 of FY26. This kind of data in offer document is not acceptable by the markets.

Based on the information provided on the links, for FY25 it posted a net profit of Rs. 0.47 cr. on a total income of Rs. 22.50 cr. and for H1 of FY26 ended on September 30, 2025, it earned a net profit of Rs. 0.45 cr. on a total income of Rs. 21.10 cr. Thus, it marked minuscule top and bottom lines for the reported periods with inconsistency.

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. 

SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 539884 (FV Rs. 2).
The scrip last closed on cum-right basis at Rs. 3.04 on October 30, 2025, and opened on an ex-right basis at Rs. 3.10 on October 31, 2025. Since then, it has marked a high/low of Rs. 3.10 / Rs. 2.53. The scrip last closed at Rs. 2.97 as of November 11, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 6.94 / Rs. 2.19. 

The promoters’ holding has been constant at 30.40% for the quarter ended with September 30, 2025. The counter is trading below the RI price, indicating its very poor fancy among the investors.