Gravity (India) - BSE - RI review - (Not Rated)

•    The company that was primarily engaged in the textile segment diversified in to agri commodity trading, IT related solutions and services,
•    The company posted minuscule financial performances with declining top line and rising losses from FY22 to FY25.
•    It marked a sharp turnaround for 9M-FY26 which not only raise eyebrows but also concern over its sustainability as it has diversified into crowded segments.
•    Though the RI is at par value, it appears “High Risk/Low Return” bet.
•    Over eight-fold rise in its post-RI equity base may face its servicing issue.
•    There is no harm in skipping this dicey offer.

ABOUT COMPANY:
Gravity (India) Ltd., (GIL) is currently engaged in the business of agro-trading and the information technology (IT) sector, catering to the evolving demands of domestic and global markets. In its agro-trading operations, the Company focuses on the sourcing, trading, and distribution of a wide range of agricultural commodities. By working closely with farmers, producers, and supply chain partners, the Company ensures consistent quality, efficient logistics, and full traceability across the procurement and distribution process.

The Company is committed to creating value across the agricultural supply chain through the adoption of modern practices, technology-driven solutions, and sustainable development principles. Its approach emphasizes responsible sourcing, improved post-harvest management, and environmentally conscious operations that support long-term food security and rural development. In addition to agro-trading, the Company operates in the IT sector, providing technology-enabled solutions and services designed to enhance operational efficiency and support business growth. Through innovation and a customer-centric approach, the Company aims to deliver reliable and scalable IT solutions aligned with market requirements.

Earlier, the Company was engaged in the business of trading of fabric and yarn, as well as commodity trading, which helped establish strong trading expertise, market understanding, and operational capabilities. Leveraging this experience, the Company has strategically diversified into its current lines of business. The Company remains committed to operational integrity, customer satisfaction, and continuous improvement across all its activities, with a focus on sustainable growth and long-term value creation for its stakeholders. As of the filing of this offer document, it had 16 employees on its payroll. 

ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 69014950 equity shares of Rs. 10 each at par value to mobilize Rs. 69.02 cr. The RI opens for subscription on April 27, 2026, and will close on May 25, 2026. The company is offering RI in the ratio of 23 for 3 to its eligible stakeholders as of the record date of April 08, 2026. The company is asking for full money on application for 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. 53.00 cr. for working capital, and Rs. 15.02 cr. for general corporate purposes. 

The RI is solely lead 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. 9.00 cr.  will stand enhanced to Rs. 78.02 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 78.02 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last four fiscals, the company has posted total income / net profit / - (loss), of Rs. 12.91 cr. / Rs. 0.08 cr. (FY22), Rs. 10.27 cr. / Rs. – (0.99) cr. (FY23), Rs. 2.28 cr. / Rs. – (6.16) cr. (FY24), Rs. 1.97 cr. / Rs. – (2.01) cr. (FY25). For 9M of FY26 ended on December 31, 2025, it posted a net profit of Rs. 6.02 cr. on a total income of Rs. 80.37 cr. Its NAV stood at Rs. 2.29 as of March 31, 2025. It presented minuscule operations so far. It posted declining bottom lines from FY23 to FY25. Higher net profit for 9M-FY26 appears to be inflated data for paving a way for RI.

DIVIDEND POLICY:
The company has not paid 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 BSE WEBSITE DATA: SCRIP CODE: 532015 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 11.55 on April 07, 2026, and opened on an ex-right basis at Rs. 10.22 on April 08, 2026. Since then, it has marked a high/low of Rs. 14.35/ Rs. 10.22. The scrip last closed at Rs. 14.35 as of April 24, 2026. For the last 52 weeks’ it has posted a high/low of Rs. 16.32 / Rs. 3.74. 

The promoters’ holding has been at O% for the two quarters ended March 31, 2026, against 5.99% for the quarter ended September 30, 2025. The counter appears rigged and well managed by vested interests to tempt investors.