• The company is engaged in the business of trading and investment in securities market as well as providing unsecured financing to individuals and small businesses.
• The counter has thin and rare volume with manipulated level above RI price.
• It posted minuscule financial performances with losses for reported periods except for FY23.
• The issue appears exorbitantly priced based on its financial parameters.
• Simply stay away from this” High Risk/No Return” pricey bet.
ABOUT COMPANY:
Ganesh Holdings Ltd. (GHL) is a non-banking finance company registered with the RBI systemically important non-deposit accepting non-banking finance company (“NBFC”) involved in the business of equity and debt investments, trading in securities and providing unsecured financing to individuals and small businesses.
It was mandatory for all NBFCs to attain a minimum NOF of Rs.200/- Lakh by the end of March 2017 as per RBI circular. The company had failed to achieve the same and hence its NBFC license was cancelled on account of non-compliance. However, the company had filed an appeal against the same with Ministry of Finance, Delhi on October 26, 2018, which was heard on September 5, 2019, and an order dated July 24, 2020, received from Ministry of Finance stating that RBI may review its order cancelling the COR of the Company. RBI heard the company twice and as per instruction of the RBI, company submitted fresh NOF certificate as on March 31, 2023, from the statutory auditor's along with audited annual report as on March 31, 2023, to RBI. Accordingly, now RBI has issued review order dated November 17, 2023, and declared not to go ahead with the cancellation proceeding initiated and the NBFC CoR no. 13.00777 issued to company dated 25-05-1998 under section 45-IA of RBI Act, 1934 was restored w.e.f. November 17, 2023.
As of September 30, 2024, it had just 5 employees on its payroll.
ISSUE DETAILS:
The company is coming out with Rights Issue (RI) of 486000 equity shares of Rs. 10 each at a fixed price of Rs. 100 per shares to mobilize Rs. 4.86 cr. The RI is opening for subscription on February 18, 2025, and will close on February 27, 2025. The company is offering RI in the ratio of 6 for 5 to its eligible stakeholders as of the record date of February 05, 2025. The company is asking for full money on application for the number of shares applied. Post allotment, shares will be listed on BSE. The company is spending Rs. 0.15 cr. for this RI process, and from the net proceeds, it will utilize Rs. 4.71 cr. for augmenting its capital base.
The 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. 0.41 cr. will stand enhanced to Rs. 0.89 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 8.91 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has posted total income/net profit/ - (loss) of Rs. 0.03 cr. / Rs. – (0.13) cr. (FY22), Rs. 0.20 cr. / Rs. 0.03 cr. (FY23), Rs. 0.14 cr. / Rs. – (0.04) cr. (FY24). For H1 of FY25 ended on September 30, 2024, it posted a loss of Rs. – (0.01) cr. on a total income of Rs. 0.06 cr. Thus while it posted very minuscule financial performances so far, it has been posting losses for all the periods except for FY23.
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: 504397 (FV Rs. 10)
The scrip last closed on cum-right basis at Rs. 157.60 on February 03, 2025, and opened on an ex-right basis at Rs. 120.00 on February 10, 2025. Since then, it has marked a high/low of Rs. 120.00 / Rs. 119.95. The scrip last closed at Rs. 119.95 as of February 14, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 159.84 / Rs. 50.10. The counter is currently under GSM: Stage 4 and is having restrictions on trades due to this. The counter is witnessing very rare and thin volumes.
The promoters’ holding has been constant at 49.46% for the last three quarters ended with December 31, 2024. The counter is well maintained above the RI price by vested interest operators to tempt investors. The counter is jacked up with average volumes.
Review By Dilip Davda on February 15, 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.
