Zerodha (Trading & Demat Account)
FREE Equity Delivery and MF
Flat ₹20/trade Intra-day/F&O
Zerodha (Trading & Demat Account)
FREE Equity Delivery and MF
Flat ₹20/trade Intra-day/F&O
|
|
• QSIL has diversified from IT segment to EV charging segment.
• It has posted listless performances with losses for the reported periods.
• The counter is well managed by vested interests above the RI price to lure investors.
• There is no harm in skipping this pricey RI.
ABOUT COMPANY:
Quest Softech (India) Ltd. (QSIL) was incorporated for the main business of providing software and hardware consulting services related to the preparation and maintenance of accounting information and reports. The Company is trading in the Software Development Services. The main business is of IT/BPO (Business Process Outsourcing) services related to the preparation and maintenance of accounting information and reports.
In the month of February, 2023 the main object clause of the company was changed and includes the Business of operating and maintenance of chargers of Electric Vehicles and it's Charging Stations and allied business activities. The Growth of Eclectic vehicles are increasing and the Leading Car Manufacturing Companies Have started Electric Vehicles in their plants. The Growth of Electric Vehicles depends upon the Infrastructure facilities like availability of Charging Station all over the country. System Level Solutions (India) Private Limited (SLS) who has developed the EV chargers is also the strategic Investor holding 24.70% stake in the Promoter Company.
Currently, the Company offers a wide range of charging products and services, including home charging solutions, public charging stations, and fleet management solutions. Its products are designed to meet the needs of both electric vehicle owners and businesses that are looking to invest in electric vehicle charging infrastructure. Along with the trading of EV Chargers/stations QSIL also operates own charging stations. The company also provides different services to the EV Chargers like installation of Chargers, check feasibility and also provides Annual Maintenance Services (AMC Services) to the installed chargers.
The Company is operating under both the verticals COCO model and trading model. COCO refers to the money QSIL spends towards procuring, installing and maintaining the EV chargers all at its own cost. For chargers sold it provides the service of procuring, installing and provide AMC services for a price. The company has tried to develop the Sale vertical but the response and sale of the charging machines was not picked up.
The Company has decided to go for COCO model where the company makes investment in developing own charging station network. Once the chargers are live for usage the company will get regularly income. The Company has ventured in the EV charging filed in last Financial Year 2022-23. Currently, the Company is Charging Point operator having own charging station network. Its Brand name for owned Charging Station is "AMPVOLTS". It is providing end to end solutions in this domain to clientele including but not limited to - site testing for charger suitability and viability, trading Chargers, Installation and commissioning of chargers, maintenance and AMC of chargers, and above all providing its growing network of COCO (company owned and company operated) chargers. In addition to its charging solutions, the company also offers consultation services to help businesses and organizations develop and implement their own EV charging strategies. The offer document is silent on its employee's strength.
ISSUE DETAILS:
The company is coming out with a Rights Issue (RI) of 16000000 equity shares of Rs. 10 each at a fixed price of Rs. 30 per share to mobilize Rs. 48 cr. The issue opens for subscription on February 02, 2024, and will close on February 15, 2024. The company is offering RI in the ratio of 8 for 5 to eligible stakeholders as of the record date of January 08, 2024. The company is asking 33.33% payment i.e. Rs. 10 per share on application for number of shares applied and the balance Rs. 20 by two calls as and when decided by the company. Post allotment, shares will be listed on BSE. The company is spending Rs. 0.20 cr. for this RI process and from the net proceeds, it will utilize Rs. 35.62 cr. for installation of EV charging stations, Rs. 4.28 cr. for repayment of loan, and Rs. 7.90 cr. for general corporate purposes.
The RI is self-managed by the company and Purva Sharegistry (India) Pvt. Ltd. is the registrar of the issue.
Post-RI, company's current paid-up equity capital of Rs. 10.00 cr. will stand enhanced to Rs. 26 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 78 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has posed a total income/net profit/-(loss) of Rs. 0.08 cr. / Rs. - (1.15) cr. (FY21), Rs. 0.09 cr. / Rs. - (0.51) cr. (FY22), Rs. 0.7 cr. / Rs. - (0.36) cr. (FY23). For H1 of FY24 ended on September 30, 2023, it reported a net loss of Rs. - 1.32) cr. on a total income of Rs. 0.03 cr. Thus it has posted poor financial performances for the reported periods.
DIVIDEND POLICY:
The company has not declared any dividends since incorporation. It will adopt a prudent dividend policy post listings of RI shares based on its financial performance and future prospects.
SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 535719 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 93.77 on January 05, 2024, and opened on an ex-right basis at Rs. 57.20 on January 08 2024. Since then, it has marked a high/low of Rs. 60.06 / Rs. 43.51. The scrip last closed at Rs. 45.21 as of February 01, 2024. For the last 52 weeks' it has posted a high/low of Rs. 60.06 / Rs. 26.73.
The promoters' holding has been constant at 58.15% for the last three quarters ended with December 31, 2023. The counter is well managed by vested interests above the RI price to lure investors.
Review By Dilip Davda on February 1, 2024
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 the information published here. My reviews do not cover GMP market and operators game plans. Any reader taking decisions based on any information published here does so entirely at their 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.
About Dilip Davda
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.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
The Quest Softech India Rights Issue 2024 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 Quest Softech India Rights Issue 2024 worth investing. The Quest Softech India Rights Issue 2024 Note sets the Rights Issue expectations in systematic way which tells you if Quest Softech India Rights Issue 2024 good to buy (good or bad / yes or no). The Rights Issue Forecast tells you weather to invest in Quest Softech India Rights Issue 2024 by providing Rights Issue recommendations i.e. subscribe, avoid and neutral.
FREE Intraday Trading (Eq, F&O)
Flat ₹20 Per Trade in F&O
|
|
