Healthy Life BSE SME RI review - (Not Rated)

•    The company was primarily engaged in the trading of raw milk and live poultry.
•    It diversified into the manufacturing of sauces, mayonnaise, ketchup, salad dressing etc.
•    The company posted growth in its top and bottom lines for the reported periods.
•    Based on its recent financial data, the issue appears fully priced.
•    Well-informed investors may park moderate funds for long term.

ABOUT COMPANY:
Healthy Life Agritech Ltd. (HLAL) is involved in the trading of raw milk and live poultry. It sources fresh milk directly from local dairy farmers and distribute it to wholesalers, retailers, and local shops. The company procure live poultry from trusted poultry farms and supply it to wholesalers, retailers, and restaurants. By adopting a direct procurement model, it is able to maintain cost efficiency and ensure the consistent quality of both milk and live poultry.

The company has strategically expanded its operations by venturing into the manufacturing segment, specifically focusing on manufacturing of sauces, mayonnaise, ketchup, and salad dressings having installed production capacity of 2112 metric tonnes per annum for each product as mentioned above as per the certificate of Chartered Engineer dated August 16, 2025. To support this initiative, a state-of-the-art manufacturing facility measuring 10,000 square feet has been established in KAIDB Industrial Area Obadenahalli, Doddaballapur, Bangalore.

HLAL has two subsidiaries, namely: 1. Healthy Life Agro Limited, which is engaged in the business of manufacturing of animal protein and feeds; and 2. Healthy Life Farms Private Limited, which is engaged in the business of trading of sea foods, fresh vegetables and fresh fruits. The offer document is silent on its employees’ strength.

ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 24812000 equity shares of Rs. 10 each par value to mobilize Rs. 24.81 cr. The RI opens for subscription on October 07, 2025, and will close on October 31, 2025. The company is offering RI in the ratio of 1 for 1 to its eligible stakeholders as of the record date of September 26, 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 SME. The company is spending Rs. 0.50 cr. for this RI process, and from the net proceeds, it will utilize Rs. 0.85 cr. for repayment/prepayment of certain borrowings, Rs. 18.00 cr. for working capital, and Rs. 5.46 cr. for general corporate purposes. The minimum application to be made is for 2000 shares and in multiples thereon, thereafter.

The RI is self-managed by the company itself, and Cameo Corporate Services Ltd. is the registrar to the issue. 

Post-RI, company’s current paid-up equity capital of Rs. 24.81 cr. will stand enhanced to Rs. 49.62 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 49.62 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. 132.95 cr. / Rs. 2.51 cr. (FY24), and Rs. 171.87 cr. / Rs. 3.26 cr. (FY25). As per unaudited results filed with the exchange, for Q1 of FY26 ended on June 30, 2025, it earned a net profit of Rs. 0.48 cr. on a total income of Rs. 16.68 cr. against Rs. 0.46 cr. on a turnover of Rs. 15.52 cr. for corresponding previous period. The company has posted growth in its top and bottom lines for the reported periods.

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. However, offer document is silent on its dividend policy.

SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 543546 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 38.77 on September 25, 2025, and opened on an ex-right basis at Rs. 23.19 on September 26, 2025. Since then, it has marked a high/low of Rs. 23.19 / Rs. 17.96. The scrip last closed at Rs. 17.96 as of October 06, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 61.17 / Rs. 17.96. The counter is currently under ASM LT: Stage I.

The promoters’ holding has been constant at 29.79% for the last three quarters ended with June 30, 2025. RI is at a discount of around 79.6% based on its last traded price of Rs. 17.96 as of October 06, 2025. The counter is well maintained above the RI price to tempt investors.