Scoobee Day BSE RI review - (Not Rated)

•    The company is currently engaged in the manufacturing of garments and roofing materials.
•    It marked inconsistency in its top and bottom lines for the reported periods.
•    Based on its recent financial data, the RI is exorbitantly priced.
•    The only attraction is promoter’s holding is around 75%.
•    There is no harm in skipping this “High Risk/Low Return” pricey bet.

ABOUT COMPANY:
Scoobee Day Garments (India) Ltd. (SDGIL) was originally promoted as Victory Paper and Boards (India) Ltd. for manufacturing eco-friendly paper. Later on, it was acquired by Anna Aluminium Co. Pvt. Ltd, that was engaged in the manufacturing of Aluminium and later diversified into sectors such as food, spices, and textile. It changed its name to current one in September 2021, following its diversification in to garments and roofing materials. 

At present, the company primarily focuses on the export of baby garments—a segment that demands high levels of quality. The company manufactures its baby apparel using 100% pure cotton to ensure softness and breathability, suitable for infants’ sensitive skin. Advanced dyeing and printing technology is employed to produce garments that are non-allergenic, durable, and comfortable. The company emphasizes long-term relationships with international buyers, aiming to deliver consistent quality through robust infrastructure, technical know-how, and stringent quality control systems.

As on the date of this Letter of Offer, its manufacturing unit located at Karur is equipped with cutting-edge machinery and infrastructure. This includes Automated Cutting Machine, Sophisticated sewing machines and Quality control machines, which enable it to maintain high standards of production efficiency and quality. For FY25, it utilized 142.84% of its total available capacity. As of the said date, it had 664 employees on its payroll.

ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 4500000 equity shares of Rs. 10 each at a fixed price of Rs. 90.00 per share to mobilize Rs. 40.50 cr. The RI opens for subscription on September 12, 2025, and will close on September 19, 2025. The company is offering RI in the ratio of 1 for 3 to its eligible stakeholders as of the record date of September 02, 2025. The company is asking for full money on application for number of shares applied. Post allotment, RI shares will be listed on BSE. The company is spending Rs. 0.42 cr. for this RI process, and from the net proceeds, it will utilize Rs. 30.37 cr. for adjustment of promoters and group company’s unsecured loans against entitlement of rights, and Rs. 9.71 cr. for general corporate purposes. 

The RI is self-managed by the company itself, and Cameo Corporate Services Ltd. is the registrar to the issue. 

Post-RI, company’s current paid-up equity capital of Rs. 13.50 cr. will stand enhanced to Rs. 18.00 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 162.00 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has posted total income / net profit, of Rs. 50.91 cr. / Rs. 7.84 cr. (FY23), Rs. 40.99 cr. / Rs. 3.67 cr. (FY24), and Rs. 47.11 cr. / Rs. 1.91 cr. For Q1 of FY26 ended on June 30, 2025, it earned a net profit of Rs. 0.87 cr. on a total income of Rs. 15.78 cr. It has posted inconsistency in its top and bottom lines for the reported periods. Its financial data in Rs. lakh on few pages and for other pages in Rs. 000 creates some confusion. How the regulators have approved such dual figures data in an offer document?

DIVIDEND POLICY:
The company has not declared any dividends for the reported periods of the offer document. It will adopt a prudent dividend policy, based on its financial performance and future prospects. However, the offer document is silent on its dividend policy. 

SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 531234 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 93.94 on September 01, 2025, and opened on an ex-right basis at Rs. 94.00 on September 02, 2025. Since then, it has marked a high/low of Rs. 97.93 / Rs. 86.35. The scrip last closed at Rs. 89.85 as of September 11, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 143.45 / Rs. 68.33. 

The promoters’ holding has been around 74.99% for the last three quarters ended with June 30, 2025. The counter is hovering around RI price and raises concern.