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• Aho Ashcharyam, this company has been a frequent RI making company.
• This is the fifth RI since January 2018, and this RI is just within two months of its last RI of February 2024.
• It marked de-growth in its top and bottom lines from FY22 onwards.
• There is no harm in skipping this "High Risk/No Return" bet.
PREFACE:
This company has emerged as a frequent Right Issue (RI) making company. This is its fifth Right Issue since January 2018. It came with RI in January 2018 (148 for 219 @ Rs. 16.50 worth Rs. 30.00 cr.), May 2019 (62 for 645 @ Rs. 23 worth Rs. 9.97 cr.), August 2021 (40 for 99 at @ Rs. 12.50 worth Rs.24.96 cr.), February 2024 (1 for 1 at Rs. 5 worth Rs. 34.65 cr.) and now in April 2024 (67 for 47 @ Rs. 5 worth Rs. 49.40 cr.). This RI is just within two months of its last RI and that too a for a higher amount.
ABOUT COMPANY:
Scanpoint Geomatics Ltd. (SGL) is a geospatial technology company engaged in the business of developing a technology platform and solution in the field of Geographic Information System (GIS) and remote sensing. Its flagship technology IGiS is an indigenous software platform developed by the company pursuant to contractual technical know-how arrangement of the Company with Indian Space Research Organization (ISRO).
IGiS is a unique technology which brings GIS, Image Processing, Photogrammetry, and 3D GIS together on a single platform. SGL helps solve complex geospatial data management to assist in meaningful, quick, effective, and efficient decision making. Its integrated technology platform and solutions enables it to provide comprehensive geomatics solutions to clients. Backed on the domain knowledge and know-how provided by ISRO, the company continues to innovate and enhance products and solutions in line with technological trends and market needs.
The Company has developed verticalized product and solution based on IGiS for segments which include agriculture, defense, land information, smart cities, urban planning, utilities, retail, and location-based services and caters to the specific business need of such respective segments using integrated GIS and remote sensing technology.
The Company also provides end to end turn-key solutions in the area of enterprise GIS implementation which includes GIS platform, customized web and Mobile GIS application, implementation services, data modeling, training and capacity building and post implementation O & M services. As of March 31, 2024, it had 153 employees on its payroll.
ISSUE DETAILS:
The company is coming out with its 5th Rights Issue (RI) since January 2018. This time it is offering 98800000 equity shares of Rs. 2 each at a fixed price of Rs. 5 per share to mobilize Rs. 49.40 cr. Thus this is the biggest RI from the company so far. The RI opens for subscription on April 30, 2024, and will close on May 08, 2024. The company is offering RI in the ratio of 67 for 47 to its eligible stakeholders as of the record date of April 19, 2024. The full amount is to be paid for the number of shares applied. Post allotment, shares will be listed on BSE. The company is spending Rs. 0.45 cr. for this RI process, and from the net proceeds, it will utilize Rs. 35.00 cr. for repayment of identified unsecured loan, Rs. 10.00 cr. for working capital, and Rs. 3.95 cr. for general corporate purposes.
This RI is solely lead managed by Vivro Financial Services Pvt. Ltd. and Link Intime India Pvt. Ltd. is the registrar to the issue.
Post-RI, company's current paid-up equity capital of Rs. 13.86 cr. will stand enhanced to Rs. 33.62 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 84.05 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has posted a total revenue/net profit of Rs. 33.45 cr. / Rs. 1.96 cr. (FY22), and Rs. 17.41 cr. / Rs. 0.58 cr. (FY23). For 9M of FY24 ended on December 31, 2023, it earned a net profit of Rs. 0.49 cr. on a total revenue of Rs. 10.64 cr. Thus it marked degrowth in its top and bottom lines. Surprisingly it kept raising funds via Rights Issue since 2018 but failed to deliver the desired performance.
DIVIDEND POLICY:
The company has not declared any dividends for the reported periods of the offer document. 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: 526544 (FV Rs. 2).
The scrip last closed on cum-right basis at Rs. 8.68 on April 18, 2024, and opened on an ex-right basis at Rs. 6.49 on April 19, 2024. Since then, it has marked a high/low of Rs. 6.81 / Rs. 5.74. The scrip last closed at Rs. 5.76 as of April 29, 2024. For the last 52 weeks' it has posted a high/low of Rs. 7.47 / Rs. 3.76.
The promoters' holding has been constant at 18.62% for the last three quarters ended with March 31, 2024. The counter is well managed above the RI price to tempt investors.
Review By Dilip Davda on April 29, 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 Scanpoint Geomatics Rights Issue April 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 Scanpoint Geomatics Rights Issue April 2024 worth investing. The Scanpoint Geomatics Rights Issue April 2024 Note sets the Rights Issue expectations in systematic way which tells you if Scanpoint Geomatics Rights Issue April 2024 good to buy (good or bad / yes or no). The Rights Issue Forecast tells you weather to invest in Scanpoint Geomatics Rights Issue April 2024 by providing Rights Issue recommendations i.e. subscribe, avoid and neutral.
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