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Scanpoint Geomatcs RI review (May apply)

Scanpoint Geomatics Limited Logo

•    SGL is a geospatial technology company having a technical tie-up with ISRO.
•    The company has posted growth for the last two fiscals.
•    Only 50% is to be paid as application money, rest on first and final call.
•    Investment with a long term perspective may be considered.

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 under technical know-how from ISRO. IGiS is a unique technology that brings GIS, Image Processing, Photogrammetry and CAD together on a single platform. SGL helps solve complex geospatial data management to assist in meaningful, quick, effective and efficient decision making.

The company's integrated technology platform and solutions enable it to provide comprehensive geomatics solutions to clients and customers. Backed on the domain knowledge and know-how provided by ISRO, it continues to innovate and enhance products and solutions in line with technological trends and market needs. It has developed verticalized products and solutions based on IGiS for segments that 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 a GIS platform, customized web GIS application as per customer need, implementation services, base map creation, training and capacity building and post-implementation O&M services.

ISSUE DETAILS:
To part finance its needs for repayment/prepayment of certain borrowings (Rs. 6.25 cr.), working capital (Rs. 12.50 cr.) and general corpus fund (Rs. 5.85 cr.), SGL is coming out with a rights issue in the ratio of 40 shares for every 99 shares held as on record date of August 17, 2021. The company will be issuing 19967482 equity shares of Rs. 2 each at a fixed price of Rs. 12.50 per share to mobilize Rs. 24.96 cr. On application Rs.6.25 per share is to be paid and the rest on the first and final call. The issue opens for subscription on August 30, 2021, and will close on September 13, 2021. Post allotment, shares will be listed on BSE. The company will be spending Rs. 0.36 cr. for this rights issue process. This is the third rights issue from the company since January 2018.

The issue is solely lead managed by Vivro Financial Services Pvt. Ltd. and Link Intime India Pvt. Ltd. is the registrar to the issue.

Post issue, SGL's current paid-up equity capital of Rs. 9.88 cr. will stand enhanced to Rs. 13.88 cr. Based on the rights issue pricing, the company is looking for a market cap of Rs. 86.73 cr.

FINANCIAL PERFORMANCE:
For the last two fiscals, SGL has reported turnover/net profit of Rs. 53.00 cr. / Rs. 1.74 cr. (FY20) and Rs. 43.79 cr. / Rs. 2.02 cr. (FY21). As of March 31, 2021, it's current paid-up equity capital of Rs. 9.88 cr. is supported by free reserves of Rs. 47.81 cr.

SCRIP PERFORMANCE:
The scrip (BSE code 526544) last closed on cum right basis at Rs. 17.95 on August 12, 2021. It turned ex-right at Rs. 16.85 on August 13, 2021, and since then it traded between Rs. 17.30/Rs. 13.70. It has posted the last 52 weeks' high/low of Rs. 21.91/Rs. 11.56. The scrip last traded at Rs. 15.85 (on August 27, 2021). Based on the last quote, the market cap stands at Rs. 109.98 cr.


Conclusion / Investment Strategy

The company has posted steady performance for the last two fiscals despite pandemic and scrip too fared well on bourses in last one year. Investors may consider parking of funds in this rights offer with a long term perspective.

Reviewer recommends Subscribing to the issue for Long Term.

Review By Dilip Davda on Aug 28, 2021

Review Author

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 information published here. Any reader taking decisions based on any information published here does so entirely at its 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.

(SEBI registered Research Analyst-Mumbai).


About Dilip Davda

Dilip Davda, a freelance journalist

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.

Email: dilip_davda@rediffmail.com

The Scanpoint Geomatics Rights Issue 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 worth investing. The Scanpoint Geomatics Rights Issue Note sets the Rights Issue expectations in systematic way which tells you if Scanpoint Geomatics Rights Issue good to buy (good or bad / yes or no). The Rights Issue Forecast tells you weather to invest in Scanpoint Geomatics Rights Issue by providing Rights Issue recommendations i.e. subscribe, avoid and neutral.