• The company is engaged in niche heavy-equipment and defence engineering manufacturing and related services.
• This is the 2nd RI from the company since March 2024.
• The company marked inconsistency in its financial performance and surprisingly posted heavy losses for 9M-FY26.
• Promoters’ holding above 68% is the only attraction for now.
• The RI appears aggressively priced based on its recent financial data and other parameters.
• Only well-informed/risk seeker/cash surplus investors may park moderate funds for long term.
ABOUT COMPANY:
TIL Ltd., (TL) (erstwhile known as Tractors India Ltd.) is a niche heavy-equipment and defence engineering company and one of the few manufacturers in India with indigenous mobile crane manufacturing capabilities, with operations tracing back to 1944. The company offers a diversified portfolio of material handling and infrastructure equipment, including mobile cranes (10 MT to 100 MT), rough terrain cranes, lattice boom crawler cranes, reach stackers, container handlers and specialized defence equipment.
It operates two strategically located manufacturing facilities in West Bengal (Kamarhati and Kharagpur), supported by integrated research and development (“R&D”) centres, ERP-enabled systems, warehousing infrastructure and a pan-India sales and service network. With longstanding technological partnerships and deep domain expertise, TL caters to sectors such as defence, mining and steel, ports, energy and power, construction, infrastructure, oil and petrochemicals, road building and railways, serving customers in India and select international markets. Legal matter against the company amounting to Rs. 106+ cr. and contingent liabilities of around Rs. 83+ cr. raises alarm. As of December 31, 2025, it had 364 employees on its payroll and additional force of 93 contract workers in various departments.
ISSUE DETAILS:
The company is coming out with its 2nd Rights Issue (RI) of 12091760 equity shares of Rs. 10 each at a fixed price of Rs. 165.00 per share to mobilize Rs. 199.51 cr. The RI opens for subscription on March 30, 2026, and will close on April 08, 2026. The company is offering RI in the ratio of 11 for 64 to its eligible stakeholders as of the record date of March 23, 2026. The company is asking for Rs. 123.75 (75%) per share on application for number of shares applied. Balance Rs. 41.25 (25%) is to be paid by one or more calls as decided by the company from time to time. Post allotment, RI shares will be listed on BSE and NSE. The company is spending Rs. 3.01 cr. for this RI process, and from the net proceeds, it will utilize Rs. 148.00 cr. repayment of certain borrowings, and Rs. 48.50 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. Registrar to the company is C B Management Services Pvt. Ltd.
Post-RI, company’s current paid-up equity capital of Rs. 70.35 cr. will stand enhanced to Rs. 82.44 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 1360.32 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has (on a consolidated basis) posted total income / net profit /- (loss), of Rs. 68.91 cr. / Rs. 253.92 cr. (FY24), Rs. 343.07 cr. / Rs. 2.90 cr. (FY25). For 9M of FY26 ended on December 31, 2025, it posted a loss of Rs. – (20.78) cr. on a total income of Rs. 227.93 cr. Its NAV stood at Rs. 1.54 as of September 30, 2025. Accounting settlement helped it to post bumper profits. But surprisingly, for 9M-FY26 it posted losses.
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: 505196 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 187.65 on March 20, 2026, and opened on an ex-right basis at Rs. 180.00 on March 23, 2026. Since then, it has marked a high/low of Rs. 183.25 / Rs. 167.00. The scrip last closed at Rs. 167.55 as of March 27, 2026. For the last 52 weeks’ it has posted a high/low of Rs. 397.71 / Rs. 167.00.
The promoters’ holding has been constant at 68.43% for the last three quarters ended with December 31, 2025. The counter is currently well operated and kept above the RI price to tempt investors.
Review By Dilip Davda on March 27, 2026
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.
