Prismx Global RI review - (May apply)

•    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. 

ABOUT COMPANY:
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. 

ISSUE DETAILS:
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. 

FINANCIAL PERFORMANCE:
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.

DIVIDEND POLICY:
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. 

SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 501314
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.