Steelco Gujarat BSE RI review - (Not Rated)

•    The company is engaged in the manufacturing and processing wide range of ferrous, non-ferrous metal products.
•    It has reported odd numbers for the last two fiscals with rising losses from FY25 onwards.
•    Based on its recent financial data, RI appears exorbitantly priced.
•    The counter is currently under restricted trades.
•    There is no harm in skipping this pricey and dicey bet.

ABOUT COMPANY:
Steelco Gujarat Ltd., (SGL), is engaged in the manufacturing and processing of a wide range of ferrous and non-ferrous metal products. Its operations include cold rolled and hot rolled sheets, strips, and coils—both annealed and unannealed, pickled and unpickled—across all grades of steel, including carbon steel, electrical steel, stainless steel, alloy steel, grain-oriented and non-grain-oriented steel, as well as tin mill black plates.

The Company also deals in coated, plated, and uncoated steel products, including zinc-coated, aluminium-coated, zinc-aluminium alloy coated, tin-plated, plastic-coated, PVC-coated, vinyl-coated, and colour-coated sheets, strips, and coils. In addition to manufacturing and processing, the Company undertakes ferrous and non-ferrous metal making and operates as an importer, exporter, dealer, buyer, seller, Stockist, distributor, contractor, broker, consultant, and concessionaire in respect of cold rolled and hot rolled steel products, tin mill black plates, and coated, plated, and uncoated metal sheets, strips, and coils. The offer document is silent on its employees’ strength.

ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 1330060 equity shares of Rs. 10 each at a fixed price of Rs. 112 per share to mobilize Rs. 14.90 cr. The RI opens for subscription on May 25, 2026, and will close on June 04, 2026. The company is offering RI in the ratio of 5 for 1 to its eligible stakeholders as of the record date of May 15, 2026. RI is being issued to other than promoter shareholders (presumption is made on the basis of the current paid-up equity and the number of shares on offer as RI). 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. 0.30 cr. for this RI process, from the net proceeds, it will utilize Rs. 11.60 cr. for working capital, and Rs. 3.00 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. 4.97 cr. will stand enhanced to Rs. 6.30 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 70.52 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has posted total income / net profit/ - (loss), of Rs. 0.31 cr. / Rs. 165.41 cr. (FY24), Rs. 4.18 cr. / Rs. – (20.54) cr. (FY25). For 9M of FY26 ended on December 31, 2025, it posted a net loss of Rs. – (21.22) cr. on a total income of Rs. 25.12 cr. It posted negative earnings for the recent financial performances, that remains a major concern. 

DIVIDEND POLICY:
The company has not paid 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. The offer document is silent on its dividend policy.

SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 500399 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 162.60 on May 11, 2026, and opened on an ex-right basis at Rs. 126.50 on May 18, 2026. Since then, it has marked a high/low of Rs. 126.50 / Rs. 126.50. The scrip last closed at Rs. 126.50 as of May 18, 2026. For the last 52 weeks’ it has posted a high/low of Rs. 126.50 / Rs. 11.12. The counter is under IRP: Stage 1, and marked thin and restricted volumes.

The promoters’ holding has been NIL for the last two quarters ended on March 31, 2026, against 94.64% for quarter ended September 30, 2025. The counter appears rigged and well managed above the RI price, by vested interests to tempt investors.