Apollo Ingredients (Indsoya Ltd.) BSE RI review - (Avoid)

•    The company is engaged in trading of food ingredients solutions and other related products.
•    It has not marked any trades on BSE since March 07, 2023, and has just 5 employees as of the date of this offer document.
•    The company posted minuscule financial performance for the reported periods.
•    Over 25-fold hike in its post-RI equity may witnessed its servicing issue. 
•    Simply avoid this “Hi Risk/No Return” at par RI.

PREFACE:
This company is coming out with a RI of just Rs. 5 cr. at par value, but if we see its market trends, then the company is SDD non-compliance and has not marked any trades since March 07, 2023. Thus, its market trends turn totally misleading. It is also surprising that how it got permission, when its current shares are not traded on designated exchange.

ABOUT COMPANY:

Apollo Ingredients Ltd. (AIL) formerly known as Indsoya Ltd. – was originally incorporated as Khedapati Investments Ltd. in 1980, it changed its name for Indsoya in 2005 and then to Apollo Ingredients Ltd. in 2023. It is engaged in the trading of the food ingredients solutions and pharmaceuticals for the food, beverages, animal nutrition and nutraceutical industries.

AIL is a science and research-based organization with a global presence marking its niche in the arena of nutrition and health ingredients. The organization contributes to the economic prosperity, ecological advancement and social betterment by aligning its business strategy with its exceptional skill sets. It thrives to create value for all its stakeholders (internal and external customers). It has successfully attained its credibility as reliable sources in the market of dietary supplements and natural food colours, botanical extracts, food colours, phytochemicals, enzymes, probiotics, pharmaceuticals etc. As of the date of this offer documents, it had just 5 employees on its payroll.

ISSUE DETAILS/CAPITAL HISTORY:
The company is coming out with a Rights Issue (RI) of 10000000 equity shares of Rs. 5 each at par value to mobilize Rs. 5.00 cr. The RI is opening for subscription on July 16, 2025, and will close on July 29, 2025. The company is asking full money on application for number of shares applied. It is offering RI in the ratio of 25 for 1 to its eligible stakeholders as of the record date of July 07, 2025. Post allotment, shares will be listed on BSE. It is spending Rs. 0.30 cr. for this RI process, and from the rest, it will spend Rs.3.65 cr. for working capital, and Rs. 1.05 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-IPO, company’s current paid-up equity capital of Rs. 0.20 cr. (400000 shares) will stand enhanced to Rs. 5.20 cr. (10400000 equity shares). Based on the upper price band of the IPO, the company is looking for a market cap of Rs. 5.20 cr. Twenty-five-fold rise in equity post-RI may witness its servicing issue.

FINANCIAL PERFORMANCE:
On the financial performance front, for the last four fiscals, the company has posted a total income/net profit/ - (loss), of Rs. 2.49 cr. / Rs. 0.06 cr. (FY22), Rs. 0.03 cr. / Rs. – (0.07) cr. (FY23), Rs. 1.00 cr. / Rs. 0.06 cr. (FY24), Rs. 3.08 cr. / Rs. 0.10 cr. (FY25). The company has posted minuscule financial performance for the reported periods.

DIVIDEND POLICY:
It has not declared any dividends for the last five fiscals. It will adopt a prudent dividend policy based on its financial performances and future prospects.

SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 503639 (FV Rs. 5).
The scrip last closed on cum-right basis at Rs. NA on July 04, 2025, and opened on an ex-right basis at Rs. NA on July 07, 2025. Since then, it has marked a high/low of Rs. NA / Rs. NA. The scrip last closed at Rs. 9.55 as of March 06, 2023. For the last 52 weeks’ it has posted a high/low of Rs. 9.55 / Rs. 7.87. (Between April 2022 and March 2023).

The promoters’ holding has been constant at 61.80% for the last three quarters ended with March 31, 2025. The counter has no trades since March 07, 2023.