Prismx Global RI review (May apply)

Prismx Global Ventures Limited Logo

•    The company primarily started finance-related services.
•    Off late it has entered into the entertainment industry with OTT Channel.
•    It has posted an erratic top line with the rising bottom line. 
•    Based on its financial data, the issue is fully priced. 

Prismx Global Ventures Ltd. (PGVL) - (erstwhile known as Gromo Trade & Consultancy Ltd.) was primarily engaged in finance, share trading, investment business and later on diversified into the sports and entertainment industry. It started curating, creating, executing and releasing world-class sportainment content that included sports leagues, feature films, short films, web shows, musical content etc. Thus it is now on two wheels of growth i.e. finance and entertainment-related services. For entertainment, it has entered into the digital media space and launched OTT Channel. 

To part finance its needs for working capital (Rs. 39.38 cr.), general corporate purpose (Rs. 8.95 cr.), PGVL is offering 122077000 equity shares as rights issue (RI) in the ratio of 43 for 100 to the shareholders whose names were registered on the record date i.e. March 03, 2022. The company has fixed a price of Rs. 4 per share of Re. 1 each and mulls mobilizing Rs. 48.83 cr. The issue opens for subscription on March 14, 2022, and will close on March 28, 2022. Post allotment, shares will be listed on BSE. Applicants have to pay Rs. 2 per share on application and the balance in one or more calls as determined by the company. It will be spending Rs. 0.50 cr. for this RI process. As of December 31, 2021, the promoter's holding was a mere 1.40%. 

The issue is solely lead managed by Capitalsquare Advisors Pvt. Ltd. and Purva Sharegistry (India) Pvt. Ltd. is the registrar to the issue. 

Post issue, PGVL's current paid-up equity capital of Rs. 28.39 cr. will stand enhanced to Rs. 40.60 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 162.39 cr. 

On the financial performance front, for the last three fiscals, it has posted income/net profit of Rs. 30.16 cr. / Rs. 0.37 cr. (FY19), Rs. 22.33 cr. / Rs. 0.97 cr. (FY20) and Rs. 7.97 cr. / Rs. 1.34 cr. (FY21). Thus it marked declining trends for its top line but marked growth in bottom lines. For 3Qs of FY22, it has earned a net profit of Rs. 1.18 cr. on total income of Rs. 4.47 cr. As of December 31, 2021, its NAV stood at Rs. 1.53.

The company has no dividend track record for the reported period in the offer documents. It will adopt a prudent dividend policy post this issue based on its financial performance and future prospects. 

The scrip last closed on cum-right basis at Rs. 8.29 on February 28, 2022, and opened on an ex-rights basis at Rs. 6.32 on March 02, 2022. Since then, it has posted a high/low of Rs. 7.70 / Rs. 6.32. It last closed at Rs. 7.05 (on March 11, 2022) and based on this closing, its market cap on post-RI stands at Rs. 286.21 cr. It has posted the last 52 weeks high/low of Rs. 12.90 / Rs. 3.74. 

This counter is well operated in the market despite a very small promoter holding.

Conclusion / Investment Strategy

The counter is well operated by vested interests to lure investors for this RI offer. Based on its financial data, the issue is fully priced. Cash surplus/risk seeker investors may consider parking of funds for the long term.

Review By Dilip Davda on Mar 11, 2022

Review Author

DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on information published here. Any reader taking decisions based on any information published here does so entirely at its own risk. Investors should bear in mind that any investment in stock markets is subject to unpredictable market-related risks. The above information is based on RHP and other documents available as of date coupled with market perception. The author has no plans to invest in this offer.

(SEBI registered Research Analyst-Mumbai).

About Dilip Davda

Dilip Davda, a freelance journalist

Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.

Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.

Email: dilip_davda@rediffmail.com

More Prismx Global Ventures Limited RI Views / Analysis / Recommendations ...

The Prismx Global Rights Issue Analysis helps you to understand about the company, offer detail, valuation, capital structure and financial performance. Our SEBI registered Rights Issue Analysts tells you if Prismx Global Rights Issue worth investing. The Prismx Global Rights Issue Note sets the Rights Issue expectations in systematic way which tells you if Prismx Global Rights Issue good to buy (good or bad / yes or no). The Rights Issue Forecast tells you weather to invest in Prismx Global Rights Issue by providing Rights Issue recommendations i.e. subscribe, avoid and neutral.