Dhyaani Trade BSE RI review - (Avoid)

•    The company is in trading and dealing in agro commodities and other allied products.
•    It has recently sought permission from stakeholders for real estate activities.
•    It has posted listless financial performance so far.
•    Its post-RI equity will be four fold and may witness its servicing issue.
•    There is no harm in skipping this pricey RI bet.

ABOUT COMPANY:
Dhyaani Tradeventures Ltd. (DTL)-erstwhile known as Dhyaani Tiles & Marblez Ltd. is primarily engaged in the business of trading/dealing in agro commodities. Its operates on key verticals of Dealing in all kinds of agri-inputs and commodities, like wheat, different varieties of rice, moong, tuver, rajma etc and fertilizers, Micronutrients, Pesticides & insecticides and Cotton, Yarns, Fabrics, Agri tech products and all other commodities including pan masala, tobacco, tobacco crops, smoking and chewing tobacco, cigarettes, cigars and other products of tobacco, match lights, matches, match boxes and pipes. It is involving in • Manufacturing any spare parts, accessories, modern agricultural implements etc, • Undertaking activities related to software development for agro industry, • IT enabled services including Artificial Intelligence Solutions. 

Recently it sought for stakeholder's approval for entering in the business relating to construction and real estate developing activities. As of the date of this RI offer document, it had just 6 employees on its payroll.

ISSUE DETAILS:
The company is coming out with a Rights Issue (RI) of 12768000 equity shares of Rs. 10 each at a fixed price of Rs. 23 per share to mobilize Rs. 29.37 cr. The RI has already opened for subscription on September 05, 2024, and will close on September 13, 2024. The company is offering RI in the ratio of 3 for 1 to its eligible stakeholders as of the record date of August 23, 2024. The full amount is to be paid on application for the number of shares applied. 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. 21.47 cr. for working capital, and Rs. 7.15 cr. for general corporate purposes.

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

Company's current paid-up equity capital of Rs. 4.26 cr. will stand enhanced to Rs. 17.02 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 39.16 cr. 

FINANCIAL PERFORMANCE:
The financial data given in the offer document is blurred and difficult to read. There is a garbled financial data on page no. 124 and 125 of the offer document. he financial data is compiled from page no. 130 of the offer document. 

For the last three fiscals, the company has posted a total income/net profit/ - loss of Rs. 21.80 cr. / Rs. 0.77 cr. (FY22), Rs. 9.44 cr. / Rs. - (0.08) cr. (FY23), and Rs. 29.82 cr. / Rs. 0.69 cr. (FY24). It marked inconsistency in its top and bottom lines 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. 

SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 543516 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 23.28 on August 22, 2024, and opened on an ex-right basis at Rs. 22.67 on August 23, 2024. Since then, it has marked a high/low of Rs. 24.35 / Rs. 21.40. The scrip last closed at Rs. 23.02 as of September 06, 2024. For the last 52 weeks' it has posted a high/low of Rs. 68.55 / Rs. 17.18. 

The promoters' holding has been constant at 32.96% for the last two quarters ended with June 30, 2024. The counter is well managed above or around the RI pricing by the vested interest operators to lure investors.