Sunrest Lifescience NSE RI review - (Not Rated)

•    The company is engaged in the business of pharmaceutical products marketing.
•    Its major operation is based on third party supply management.
•    The RI is aggressively priced and has no support from its recent financial data.
•    The company is operating in a highly competitive and fragmented segment.
•    There is no harm in skipping this pricey and dicey RI offer.

ABOUT COMPANY:
Sunrest Lifescience Ltd., (SLL) is engaged in the pharmaceutical business and selling its products in the State of Gujarat, Maharashtra, Rajasthan, UP, West Bengal, Andra Pradesh, Telangana, Karnataka and Madhya Pradesh. The company offers wide range of pharmaceutical products. It gets the 20% of its products manufactured from subsidiary Hetvi Lifescience Private Limited (“Hetvi"), situated in Gujarat, and other major suppliers, such as it gets 8.13% products from Ziyal Pharmaceuticals, Gujarat and the rest is manufactured by other third-party manufacturers. Its Top 10 suppliers consist of 62.25% of total supplies of the Company. 

SLL relies on third party for manufacturing of its products typically work on third-party manufacturing basis or at times purchase order basis with manufacturer of pharma products, depending upon customer’s requirement, any decline in the quality of medicines manufactured or delay in delivery of products by such parties or rise in job work charges may adversely affect its operations. As of the date of this offer document, it had 230 employees on its payroll.

ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 4291200 equity shares of Rs. 10 each at a fixed price of Rs. 35 per share to mobilize Rs. 15.02 cr. The RI opens for subscription on April 02, 2026, and will close on April 30, 2026. The company is offering RI in the ratio of 1 for 1 to its eligible stakeholders as of the record date of March 23, 2026. The company is asking for full money on application for number of shares applied. Post allotment, RI shares will be listed on NSE SME. The company is spending Rs. 0.25 cr. for this RI process, and from the net proceeds, it will utilize Rs. 6.85 cr. for funding its subsidiary for purchase of new plant and machinery for its upcoming plant, Rs. 5.00 cr. for working capital, Rs., Rs. 2.92 cr. (as presume deducting issue expenses) for general corporate purposes. The market lot for this counter is 1600 shares.

There is a garble in the details of net proceeds and requirement of funds data on page no. 48 of the offer document.

The RI is solely lead managed by the company itself., and Skyline Financial Services Pvt. Ltd. is the registrar to the issue. 

Post-RI, company’s current paid-up equity capital of Rs. 4.29 cr. will stand enhanced to Rs. 8.58 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 30.04 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has (on a standalone basis) posted total income / net profit, of Rs. 24.98 cr. / Rs. 0.23 cr. (FY24), and (on consolidated basis) Rs. 33.42 cr. / Rs. 2.01 cr. (FY25), and for H1 of FY26 ended on September 30, 2025, it posted a net profit of Rs. 1.42 cr. on a total income of Rs. 34.01 cr. Quantum jump in its bottom lines from FY25 onwards raise eyebrows and concern over its sustainability going forward. Its NAV stood at Rs. 39.72 per share as of September 30, 2025.

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. The offer document is silent on its dividend policy.

SCRIP PERFORMANCE: BASED ON NSE WEBSITE DATA: SCRIP CODE: SUNREST (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 44.60 on March 20, 2026, and opened on an ex-right basis at Rs. 44.60 on March 23, 2026. Since then, it has marked a high/low of Rs. 47.65 / Rs. 35.20. The scrip last closed at Rs. 37.00 as of March 30, 2026. For the last 52 weeks’ it has posted a high/low of Rs. 54.46 / Rs. 26.38. 

The promoters’ holding has declined to 53.50% for the last two quarters ended on December 31, 2025, against 69.91% for the quarter ended June 30, 2025. The counter is currently well managed by vested interests and trades marginally above the RI price, to tempt investors.