Patel Integrated RI review - (May apply)

•    This is the second rights issue from the company after Feb/Mar 2021.
•    Previous issue too was at par but for Rs. 9.50 cr.
•    This time the issue size is above four times of previous RI.
•    Cash surplus/risk seekers may invest in this at par offer for the long term. 

ABOUT COMPANY: 
Patel Integrated Logistics Ltd. (PILL) is engaged in the business of providing logistics services and unified solutions focusing on air transportation and surface transportation as well as ancillary services such as courier services and warehousing. The company operates through a Pan-India network comprising 24 branch offices and presence across India covering major cities/towns/airports. This is the second rights issue (RI) from the company within a year. Its last RI was in the month of February/March 2021 for raising Rs. 9.50 cr. This RI is over four times the previous RI. 

ISSUE DETAILS: 
To part finance its plans for repayment/prepayment of borrowings with interest (Rs. 35 cr.) and general corporate purpose (Rs. 4.40 cr.), PILL is coming out with its RI of 40000000 equity shares of Rs. 10 each at par to mobilize Rs. 40 cr. The issue has already opened for subscription on November 09, 2021, and will close on November 23, 2021. Post allotment, shares will be listed on BSE and NSE. Applicants have to pay Rs. 2.50 per share on application and balance Rs. 7.50 on-call by the company. The company is spending Rs. 0.60 cr. for this rights issue process. 

The company is issuing 613 shares for every 399 shares held as of the record date of October 29, 2021. 

The issue has no merchant banker but is being managed by the company itself and Bigshare Services Pvt. Ltd. is the registrar to the issue. 

Post RI, PILL's current paid-up equity capital of Rs. 26.04 cr. will stand enhanced to Rs. 66.04 cr. (66035923 shares). Based on the RI pricing, the company is looking for a market cap of Rs. 66.04 cr. 

FINANCIAL PERFORMANCE: 
On the financial performance front, for the last two years, the company has posted turnover/net profits of Rs. 353.87 cr. / Rs. 10.74 cr. (FY20) and Rs. 217.30 cr. / Rs. 0.05 cr. (FY21). It suffered a severe setback in the pandemic year in its performance for FY21. As per unaudited results, for Q1 of FY22 ended on June 30, 2021, it has reported a loss of Rs. - (0.81) cr. on a turnover of Rs. 51.76 cr. 

The company is expected to improve upon as the normalcy restores at all levels going forward. As of June 30, 2021, its current equity capital of Rs. 26.04 cr. is supported by free reserves of Rs. 90.48 cr. Post this issue its reserves will stand almost the same while paid-up equity capital will stand enhanced to Rs. 66.04 cr. Its debt-equity ratio as of said date was 0.44 and will stand reduced to 0.33 post-RI issue. 

SCRIP PERFORMANCE: (As per BSE website) (Scrip code: 526381)
PILL closed cum-rights at Rs. 27.65 on October 27, 2021, and opened ex-right at Rs. 15.30 on October 28, 2021. Since then it has posted a high/low of Rs. 17.45 / Rs. 14.70 and last closed at Rs. 14.95 per share on November 09, 2021. Based on its last traded price, the market cap on post RI amounts to Rs. 98.72 cr. The scrip has marked the last 52 weeks' high/low of Rs. 19.65. / Rs. 9.63.