Presstonic Engg. NSE SME RI review - (Not Rated)

•    The company is engaged in the manufacturing of Metro Rail Rolling Stock products, signalling products and infrastructure products.
•    The company posted growth in its top lines for the reported periods, but fluctuating bottom lines.
•    Based on its financial data, the RI is aggressively priced.
•    Well-informed investors may park moderate funds for medium term.

ABOUT COMPANY:
Presstonic Engineering Ltd. (PEL) is engaged in the manufacturing of Metro Rail Rolling Stock products, Metro Rail Signalling products and Infrastructure products, and supplies these products to renowned global and domestic OEMs involved in the manufacturing and servicing of rail and metro rolling stock and signalling equipment.

Recently, the Company has expanded its product portfolio to include Commercial Kitchen Oven Parts, Support Bracket (KIT SOPORT AUX), Control Housing Tooling and Shelf Trolly, Mild Steel Products, Others Infra Wall Mounted, Other Stainless-Steel Pipes, etc. The offer document is silent on its employees’ strength.

ISSUE DETAILS:
The company is coming out with its 3rd Rights Issue (RI) of 7707480 equity shares of Rs. 10 each at a fixed price of Rs. 35 per share to mobilize Rs. 26.98 cr. The RI opens for subscription on February 06, 2026, and will close on March 06, 2026. The company is offering RI in the ratio of 1 for 1 to its eligible stakeholders as of the record date of January 29, 2026. The company is asking for full money on application for the number of shares applied. RI shares will be listed on NSE SME Emerge. The company is spending Rs. 1.22 cr. for this RI process, and from the net proceeds, it will utilize Rs. 2.97 cr. for repayment/prepayment of certain borrowings, Rs. 16.09 cr. for working capital, Rs. 6.70 cr. for general corporate purposes. The market lot shall be 800 shares.

The RI is solely lead 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. 7.71 cr. will stand enhanced to Rs. 15.42 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 53.95 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last fiscal, the company has posted total income / net profit, of Rs. 21.04 cr. / Rs. 0.86 cr. (FY25). For H1 of FY26 ended on September 30, 2025, it earned a net profit of Rs. 0.33 cr. on a total income of Rs. 20.17 cr. Its NAV stood at Rs. 33.75 as of September 30, 2025.

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. The offer document is silent on its dividend policy.

SCRIP PERFORMANCE: BASED ON NSE WEBSITE DATA: SCRIP CODE: PRESSTONIC (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 49.90 on January 28, 2026, and opened on an ex-right basis at Rs. 42.55 on January 29, 2026. Since then, it has marked a high/low of Rs. 47.45 / Rs. 37.90. The scrip last closed at Rs. 38.25 as of February 03, 2026. For the last 52 weeks’ it has posted a high/low of Rs. 121.19 / Rs. 37.29.  

The promoters’ holding is at 58% for quarter ended September 30, 2025.  Vested interest quarters are operating the counter and maintaining it above the RI price.