• The company is RBI registered NBFC engaged in financial services, however its name with Infotech & Software is misleading.
• This is the 2nd RI from the company since January 2024.
• It marked minuscule financial performance and hike in its post-RI capital base indicates issue for its servicing going forward.
• The issue is greedily priced based on its recent financial data.
• There is no harm in skipping this “High Risk/Low Return” pricey bet.
ABOUT COMPANY:
Indian Infotech & Software Ltd. (IISL) is a non-banking finance company NBFC-Non-Systematically Important Non- Deposit Taking Company categorized as Investment and Credit Company i.e., ICC), incorporated in the year 1982 registered with the Reserve Bank of India bearing registration number B-13.0022 to carry on NBFC business activities under Section 45IA of the Reserve Bank of India Act, 1934. It is a non-systemically important non-deposit taking company with over three decades of lending experience in India.
The company is primarily engaged in Investment and lending activity, to look after the needs and aspirations of customers and investment in good company’s securities. IISL’s portfolio includes lending, finance to small and medium companies, investment in various securities of companies. It has a long history of serving all types of markets with high growth potential and have maintained a track record of financial performance and operational efficiency through consistently high rates of customer acquisition and retention and low-cost expansion into underpenetrated areas.
Business Finance to small and medium business owners including SME and MSME, its lending business to small business owners including SME and MSME lending business, primarily involves it extending secured loans and unsecured loans for business purposes to small and medium size enterprises, including Companies, LLP, and businessmen, traders, manufacturers and self-employed professionals and the company is also in the business of investment in the Quoted and Unquoted Securities of companies. However, the current name of the company totally misleads with a word Infotech. The offer document is silent on its human strength data.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 422347590 equity shares of Re. 1 each at a fixed price of Rs. 1.10 per share to mobilize Rs. 46.46 cr. The RI is opening for subscription on August 06, 2025, and will close on August 13, 2025. The company is offering RI in the ratio of 1 for 3 to its eligible stakeholders as of the record date of July 28, 2025. This is the 2nd RI from the company since January 2024.
The company is asking for full money on application for number of shares applied. Post allotment, shares will be listed on BSE. The company is spending Rs. 1.50 cr. for this RI process, and from the net proceeds, it will utilize Rs. 34.50 cr. for augmenting its capital base and funding requirements, Rs. 10.46 cr. for general corporate purposes.
The RI is solely lead managed by the company itself, and Purva Sharegistry (India) Pvt. Ltd. is the registrar to the issue.
Post RI, company’s current paid-up equity capital of Rs. 126.70 cr. will stand enhanced to Rs. 168.94 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 185.83 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, it has posted a total income/ net profit/- (loss), of Rs. 21.12 cr. / Rs. 1.71 cr. (FY24), Rs. 39.43 cr. / Rs. – (6.92) cr. (FY25). Though it marked higher top line for FY25, its bottom line turned red that raises major concern. Its NAV is down to 2.63 as of March 31, 2025 against 2.70 as of March 31, 2024. There is a big mismatch in its financial data on page no. 16 and page no. 51 of the offer document. Clarification to this garble is needed from the management.
DIVIDEND POLICY:
The offer document is silent on its dividend policy. The company has not declared any dividends for the last five fiscals. It will adopt a prudent dividend policy, based on its financial performance and future prospects.
SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 509051 (FV Re. 1).
The scrip last closed on cum-right basis at Rs. 1.24 on July 25, 2025, and opened on an ex-right basis at Rs. 1.21 on July 28, 2025. Since then, it has marked a high/low of Rs. 1.21 / Rs. 1.07. The scrip last closed at Rs. 1.17 as of August 05, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 1.55 / Rs. 0.71.
The promoters’ holding has been constant at 3.20% for the last three quarters ended with June 30, 2025. The counter is currently trading above its RI price to tempt investors.
Review By Dilip Davda on August 5, 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.
