Jainex Aamcol BSE RI review - (Not Rated)

•    The company is engaged in the manufacturing of gear hobs and other automobile components.
•    It has posted inconsistency in its top and bottom lines for the reported periods.
•    The company is operating in a highly competitive and fragmented segment.
•    Based on its recent financial data, the issue appears aggressively priced. 
•    There is no harm in skipping this pricey and dicey bet.

ABOUT COMPANY:
Jainex Aamcol Ltd. (JAL) is engaged in the manufacturing of gear hobs and other automobile components. JAL’s factory is equipped with sophisticated production techniques for manufacturing a wide variety of specially designed gear cutting tools and other special tools. The machines and equipment used in production are of the highest precision and are imported from Germany. 

The ability to design gear cutting tools requires specialists' knowledge which has been acquired and built up by it through long experience and research to meet the demands of critical designs and to create new designs, it has installed computer aided design (CAD). CAD has proved successful in its ability not only to produce working drawings, design data and graphs, but also enables to generate the gears by designed hobs. It is also possible to design hobs for cutting non-standard or asymmetric tooth profiles. The offer document is silent on its employees’ strength data.

ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 748169 equity shares of Rs. 10 each at a fixed price of Rs. 120 per share to mobilize Rs. 8.98 cr. The RI opens for subscription on December 01, 2025, and will close on December 09, 2025. The company is offering RI in the ratio of 1 for 2 to its eligible stakeholders as of the record date of November 20, 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. The company is spending Rs. 0.35 cr. for this RI process, and from the net proceeds, it will utilize Rs. 2.50 cr. for part funding expansion plans., Rs. 4.00 cr. for repayment of unsecured loans, and Rs. 2.13 cr. for repayment of secured loans. 

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. 1.50 cr. will stand enhanced to Rs. 2.24 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 26.93 cr. However, the offer document shows post-RI paid-up capital of Rs. 1.72 cr. (see page 34).

FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has posted total income / net profit, of Rs. 20.98 cr. / Rs. 0.50 cr. (FY24), and Rs. 23.85 cr. / Rs. 0.35 cr. (FY25). For Q1 of FY26 ended on June 30, 2025, it earned a net profit of Rs. 0.45 cr. on a total income of Rs. 6.51 cr. Its NAV stood at Rs. 48.47 as of March 31, 2025.

The offer documents have many mismatches and missing the NAV average as well as NAV as of June 30, 2025 data.

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, the offer document is silent on its dividend policy.

SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 505212 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 215.80 on November 19, 2025, and opened on an ex-right basis at Rs. 174.70 on November 20, 2025. Since then, it has marked a high/low of Rs. 174.70 / Rs. 135.55. The scrip last closed at Rs. 137.85 as of November 28, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 243.67 / Rs. 124.09. The counter is currently under GSM: Stage 2. 

The promoters’ holding has been constant at 66.38% for the quarter ended with September 30, 2025. The counter is well maintained by operators. The RI is at a marginal discount based on its last traded price.