• This is the 5th RI from the company since May 2019.
• It marked growth in its top and bottom lines for the reported periods.
• It has technical tie-ups with ISRO.
• The issue is priced aggressively based on its last traded price.
• Well-informed investors may park moderate funds for long term.
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 it 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.
Its products and processes are compliant of OGC and CMMi3 quality and capability maturity standards. The company pioneers the nation's geospatial domain through IGiS - an indigenous technology which brings GIS, Image Processing, Photogrammetry, and CAD together on the same platform. Its deep understanding of Geospatial industry and the breadth of solutions it offers, makes it uniquely qualified to cater one's needs. As of July 31, 2024, it had 103 employees on its payroll.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 82372552 equity shares of Rs. 2 each at affixed price of Rs. 6 per share to mobilize Rs. 49.42 cr. The RI opens for subscription on December 05, 2024, and will close on December 13, 2024. The full money it to be paid on application for the number of shares applied. The company is offering RI in the ratio of 49 shares for every 100 share held to its eligible stakeholders as of the record date of November 27, 2024. Post allotment, shares will be listed on BSE. The company is spending Rs. 0.40 cr. for this RI process and from the net proceeds, it will utilize Rs. 22.00 cr. for working capital, Rs. 15.00 cr. for repayment of unsecured loan, and Rs. 12.02 cr. for general corporate purposes.
The RI is solely lead managed by Wealth Min e Networks 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. 33.62 cr. will stand enhanced to Rs. 50.10 cr. Based on the RI price, the company is looking for a market cap of Rs. 150.29 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, it has (on a consolidated basis) posted a total income/net profit of Rs. 17.42 cr. / Rs. 0.58 cr. (FY23), Rs. 30.16 cr. / Rs. 1.62 cr. (FY24). For Q1 of FY25 ended on June 30, 2024, (as per unaudited results) it earned a net profit of Rs. 0.47 cr. on a total income of Rs. 17.86 cr. It marked steady growth in its top and bottom lines for the reported periods.
DIVIDEND POLICY:
The offer document is silent on its dividend policy. There is no dividend track record for the company. 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. 7.10 on November 26, 2024, and opened on an ex-right basis at Rs. 7.10 on November 27, 2024. Since then, it has marked a high/low of Rs. 7.53 / Rs. 6.80. The scrip last closed at Rs. 6.93 as of December 04, 2024. For the last 52 weeks' it has posted a high/low of Rs. 10.67 / Rs. 3.56.
The promoters' holding has been constant at 7.68% for the last three quarters ended with Sept. 30, 2024. The counter is well managed by vested interests and keeping it above the RI price to lure investors.
Review By Dilip Davda on December 4, 2024
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.
