• The company did its maiden IPO for Rs. 13.69 cr. in June 2024 at a price of Rs. 92 per share.
• It failed to live up to the confidence of investors so far.
• The company posted average performance with inconsistency in its bottom lines.
• Though at par value, this RI appears to be a “High Risk/No Return” bet.
• Only well-informed/cash surplus/risk seeker Investors may park moderate funds for long term.
ABOUT COMPANY:
Falcon Technoprojects India Ltd., (FTIL) is engaged in the business of providing Mechanical, Electrical and Plumbing (“MEP”) services to PAN India customers. Mechanical, Electrical, and Plumbing (“MEP”) services refer to installation services that provide comfortable spaces for building occupants. These services specifically deal with the design, selection, and installation of integrated MEP systems.
It includes installing air-conditioning systems, power and lighting systems, water supply and drainage, fire prevention and fighting systems, telephones, etc. By integrating these separate systems into one, their operation can be made more energy-effective. The design of MEPs is important for planning, decision-making, accurate documentation, performance and cost estimation, construction, and ultimately facility operation/maintenance. MEP services specifically cover the in-depth design and selection of these systems, rather than simply installing the equipment. Its litigation outstanding to the tune of Rs. 1.68 cr. raises concern.
The company came with its maiden IPO of Rs. 13.69 cr. at a price of Rs. 92 per share in June 2024, and now it is offering RI in the ration of 4 for 1 at par value. The offer document is silent on its employees’ strength data. The mandate for IPO was with Kunvarji Finstock Pvt. Ltd., while market maker was Nikunj Stock Brokers Ltd.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 21427172 equity shares of Rs. 10 each at a fixed price of Rs. 10 per share (at par value) to mobilize Rs. 21.43 cr. The RI opens for subscription on April 07, 2026, and will close on April 16, 2026. The company is offering RI in the ratio of 4 for 1 to its eligible stakeholders as of the record date of March 18, 2026. The company is asking for full money on application for number of shares applied. Post allotment, RI shares will be listed on NSE SME. The company is spending Rs. 0.14 cr. for this RI process, and from the net proceeds, it will utilize Rs. 21.29 cr. only for working capital. The minimum market lost is 1200 shares and in multiples thereon.
The RI is solely lead 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. 5.36 cr. will stand enhanced to Rs. 26.78 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 26.78 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has (on a consolidated basis) posted total income / net profit, of Rs. 11.44 cr. / Rs. 0.87 cr. (FY24), and Rs. 26.47 cr. / Rs. 1.17 cr. (FY25), and for H1 of FY26 ended on September 30, 2025, it posted a net profit of Rs. 0.39 cr. on a total income of Rs. 13.98 cr. It posted inconsistency in its bottom lines for the reported periods. Its NAV stood at Rs. 43.08 per share as of September 30, 2025.
DIVIDEND POLICY:
The company has not declared any dividends for the reported periods of the offer document. It will adopt a prudent dividend policy, based on its financial performance and future prospects. The offer document is silent on its dividend policy.
SCRIP PERFORMANCE: BASED ON NSE WEBSITE DATA: SCRIP CODE: FALCONTECH (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 15.40 on March 17, 2026, and opened on an ex-right basis at Rs. 11.65 on March 18, 2026. Since then, it has marked a high/low of Rs. 13.60 / Rs. 11.50. The scrip last closed at Rs. 13.15 as of April 02, 2026. For the last 52 weeks’ it has posted a high/low of Rs. 23.38 / Rs. 9.93.
The promoters’ holding has declined to 42.98% for the last two quarters ended on December 31, 2025, against 60.81% for the quarter ended March 31, 2025. The counter is currently well managed by vested interests and trades above the RI price, to tempt investors.
Review By Dilip Davda on April 2, 2026
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.
