Tilak Ventures Dec. 25 RI review - (Not Rated)

•    The company is engaged in a highly competitive and fragmented segment of financial services.
•    This is the 3rd RI from the company since February 2022. The last RI was in September 2024.
•    Three fold paid-up equity post RI raises alarm towards its servicing going forward.
•    The company posted erratic financial performances with stagnated bottom lines.
•    Well-informed investors may park moderate funds for medium term in this at par offer.

ABOUT COMPANY:
Tilak Ventures Ltd. (TVL) is currently majorly into investment and trading of shares, securities and commodities (including Bullion), Mutual Funds, Government Securities, Derivates and Loans & Advance. It kept changing its name from original Tilak Finance Ltd. to Out of City Travel Solutions Ltd., back to Tilak Finance Ltd., and finally settled with Tilak Ventures Ltd. The Company started its commercial operations in 1980. Since then, the company started expanding and changed its line of business several times. 

The Company operates in two reportable segments i.e., Finance and Commodities (Trading) Activities. The company has litigations in around 29 cases amounting to Rs. 63.55 cr. which is a major concern. The offer document is silent on its employees’ strength.

ISSUE DETAILS:
The company is coming out with its 3rd Rights Issue (RI) of 891393612 equity shares of Re. 1 each at par value to mobilize Rs. 89.14 cr. The RI opens for subscription on December 24, 2025, and will close on January 12, 2026. The company is offering RI in the ratio of 2 for 1 to its eligible stakeholders as of the record date of December 15, 2025. The company is asking for full money on application for the number of shares applied. Post allotment, RI shares will be listed on BSE. The company is spending Rs. 0.60 cr. for this RI process, and from the net proceeds, it will utilize Rs. 88.54 cr. for working capital

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. 44.57 cr. will stand enhanced to Rs. 133.71 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 133.71 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has posted total revenue / net profit/ - (loss), of Rs. 15.99 cr. / Rs. 5.45 cr. (FY23-standalone), Rs. 16.91 cr. / Rs. 5.15 cr. (FY24-consolidated), Rs. 26.06 cr. / Rs. 6.17 cr. (FY25 – consolidated). For H1 of FY26 ended on September 30, 2025, it posted a net profit of Rs.5.60 cr. on a total revenue of Rs. 18.04 cr. Its NAV stood at Rs. 3.22 as of September 30, 2025. It posted erratic financial performances so far.

DIVIDEND POLICY:
As per BSE Website, the company has no dividend track records. 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: 503663 (FV Re. 1).
The scrip last closed on cum-right basis at Rs. 2.84 on December 12, 2025, and opened on an ex-right basis at Rs. 1.71 on December 15, 2025. Since then, it has marked a high/low of Rs. 2.29 / Rs. 1.71. The scrip last closed at Rs. 1.95 as of December 22, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 2.29 / Rs. 1.35. The counter is currently under ASM ST: Stage 1.

The promoters’ holding remained constant at 61.98% for the last three quarters ended with September 30, 2025.  The counter is trading above the RI price, with well managed volume by the vested interest quarters.