• This is the 2nd RI from the company since September 2024.
• In last three quarters, the promoter group has marked exit in full, that remains major concern.
• It marked losses for the last three quarters, while its post-RI equity jumps over 8 times.
• The RI is priced negatively based on its recent financial performance.
• Only well-informed/cash surplus/risk takers may park moderate funds in this High Risk/Low Return at par bet.
ABOUT COMPANY:
Sadhna Nitrochem Ltd., (SNL) is engaged in manufacturing of chemical intermediates, heavy organic chemicals and performance chemicals. One of the subsidiaries of the Company remained engaged for some time in manufacturing of wireless network equipment and services also but this line of business has now been discontinued.
Chemical industry is one of the oldest industries in India. It not only plays a crucial role in meeting the daily needs of the common man, but also contributes significantly towards industrial and economic growth of the nation. The global chemical industry is one of the fastest growing sectors of the manufacturing industry. Despite the challenges of escalating crude oil prices and demanding international environmental protection standards now adopted globally, chemicals industry has still grown at a rate higher than the overall manufacturing segment. The offer document is silent on its employees’ strength data.
ISSUE DETAILS:
The company is coming out with its 2nd Rights Issue (RI) of 2635292056 equity shares of Re. 1 each at a par value to mobilize Rs. 263.53 cr. The RI opens for subscription on February 27, 2026, and will close on March 10, 2026. The company is offering RI in the ratio of 8 for 1 to its eligible stakeholders as of the record date of February 19, 2026. The company is asking for full money on application for number of shares applied. Post allotment, RI shares will be listed on BSE and NSE. The company is spending Rs. 1.28 cr. for this RI process, and from the net proceeds, it will utilize Rs. 219.16 cr. for repayment of loans and debts, Rs. 16.09 cr. for working capital, and Rs. 27.00 cr. for general corporate purposes.
The RI is solely lead managed by the company itself., and MUFG Intime India Pvt. Ltd. is the registrar to the issue.
Post-RI, company’s current paid-up equity capital of Rs. 32.94 cr. will stand enhanced to Rs. 296.47 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 296.47 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has (on a consolidated basis) posted total income / net profit/ - (loss), of Rs. 194.01 cr. / Rs. 4.08 cr. (FY24), Rs. 167.38 cr. / Rs. 7.56 cr. (FY25). For 9M of FY26 ended on December 31, 2025, it posted a loss of Rs. – (52.93) cr. on a total income of Rs. 45.78 cr. Its NAV stood at Rs. 6.92 as of December 31, 2025. The company has posted dicey financial performances for the reported periods.
DIVIDEND POLICY:
The company has paid dividends of 15% in September 2022, September 2023, September 2024, and 10% in September 2025. It will adopt a prudent dividend policy, based on its financial performance and future prospects.
SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 506642 (FV Re. 1).
The scrip last closed on cum-right basis at Rs. 5.63 on February 17, 2026, and opened on an ex-right basis at Rs. 1.66 on February 18, 2026. Since then, it has marked a high/low of Rs. 2.31 / Rs. 1.66. The scrip last closed at Rs. 2.29 as of February 24, 2026. For the last 52 weeks’ it has posted a high/low of Rs. 7.44 / Rs. 1.48. The counter is currently under ASM LT: Stage 1.
The promoters’ holding has declined to NIL for quarter ended December 31, 2025, from 29.97%for quarter ended September 30, 2025, and from 56.73% quarter ended June 30, 2025. Just in last three quarter the promoter group has exited the holdings in full. The counter is currently well managed by vested interests and traded above the RI price, to lure investors.
NOTE: My family has small holding in this company, and being current shareholders, we may apply in its Right I issue to the extent eligible.
Review By Dilip Davda on February 24, 2026
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Dilip Davda
SEBI Registered Research Analyst – Mumbai
Registration No.: INH000003127 (Perpetual)
Email: dilip_davda@rediffmail.com
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
