Trans India House - BSE - RI review - (Avoid)

•    The company rechristened itself over six times in its tenor so far. 
•    It is engaged in trading of various products and having a global play, as claimed.
•    It marked inconsistency in its top and bottom lines for the reported periods.
•    Post-RI, equity base of Rs. 71+ cr. may witness its servicing issues.
•    The RI is aggressively priced and there is no harm in skipping it as it’s a “High Risk/Low Return” pricey bet.

PREFACE:
The company is coming out with its RI to mobilize Rs. 49.38 cr., and has already opened today for subscription, but its offer document is dated May 03, 2025, and the record date was of May 08, 2025, but the offer document was uploaded on the designated exchange only on May 26, 2025 noon. Thus, delayed submission of offer documents for RI is unabatedly going on.

ABOUT COMPANY:
Trans India House Impex Ltd. (TIHIL) which was originally promoted as GBC Hi-Tech (India) Ltd., rechristened as Modi GBC Ltd., then to Modicorp Ltd., then to Spice Systems Ltd., then to IO Systems Ltd., and then to its current name in July 2022. 

It is a service-oriented export trading company providing domestic and international companies the opportunity to import and export products to new and existing markets. Through comprehensive business relationships worldwide, varying from shipping logistics to government-backed trade finance, the company has developed unparalleled networking capabilities for profitable international business. 

These established associations are invaluable assets for the promotion of trade and international business. It has strong network across globe, and worked together to collaborate, design & produce work. TIHIL is specialized in exports of Ceramic Tiles, Textiles, Fabrics, FMCG, Packaging, and such other numerous products and has successfully created a robust footprint in Western African countries, U.A.E. and the like. As of March 31, 2024, it had just 12 employees on its payroll. Surprisingly it has not given updated data of its Human Resources. 

The company is making tall claims of its overall business, but has changed its name over six times, and perhaps become master in rechristening. 

ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 35526000 equity shares of Rs. 10each at a fixed price of Rs. 13.90 per share to mobilize Rs. 49.38 cr. The RI has already opened for subscription on May 27, 2025, and will close on June 17, 2025. The company is offering RI in the ratio of 1 for 1 to its eligible stakeholders as of the record date of May 08, 2025. The company is asking for full money on application for number of shares applied. Post allotment, shares will be listed on BSE. The company is spending Rs. 0.50 cr. for this RI process, and from the net proceeds, it will utilize Rs. 44.88 cr. for working capital, and Rs. 4.00 cr. for general corporate purposes.

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

Post RI, company’s current paid-up equity capital of Rs. 35.53 cr. will stand enhanced to Rs. 71.05 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 98.76 cr. Post-RI, paid-up capital of Rs. 71.05 cr. may witness its servicing issues.

FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, it has posted a total revenue/ net profit/ - (loss) - The financial data pages attached in the offer document are blurred and not readable. (Page nos. 115 to 166, and 170 to 173).  

As per the offer document, for H1 of FY25 ended on September 30, 2024, it earned a net profit of Rs. 0.70 cr. on a total income of Rs. 18.59 cr., against net profit of Rs. 1.05 cr. on a total income of Rs. 44.04 cr. for the corresponding previous period. 

While as per BSE website filings, for the last two fiscals, the company has posted a total income/net profit of Rs. 34.47 cr. / Rs. 2.92 cr. (FY23), Rs. 81.11 cr. / Rs. 2.45 cr., and for 9M of FY25 ended on December 31, 2024, it earned a net profit of Rs. 0.76 cr. on a total income of Rs. 34.34 cr., against net profit of Rs. 1.30 cr. on a total income of Rs. 70.32 cr. Thus, it marked inconsistency in its top and bottom lines for the reported periods. 

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

SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 523752 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 14.42 on May 07, 2025, and opened on an ex-right basis at Rs. 14.44 on May 08, 2025. Since then, it has marked a high/low of Rs. 14.65 / Rs. 12.82. The scrip last closed at Rs. 13.91 as of May 26, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 35.35 / Rs. 11.75. The counter is currently under ESM: Stage 1.

The promoters’ holding has been constant at 55.35% for the last three quarters ended with March 31, 2025. The counter is well managed above the RI price to lure investors.