Travels & Rentals BSE SME RI review - (Not Rated)

•    The company is offering comprehensive range of travel related products and services.
•    Surprisingly it is going for RI with just last one and half years’ performance.
•    The counter is currently trading below the RI price.
•    Based on its recent trading price data, the issue appears exorbitantly priced.
•    There is no harm in skipping this “High Risk/Low Return” pricey bet.

ABOUT COMPANY:
Travels & Rentals Ltd. (TRL) offers a comprehensive range of travel-related products and services for end-to-end travel solutions, including airline tickets, hotels and tour packages, rail tickets as well as ancillary value-added services such as travel insurance, passport & visa processing and tickets.

The company is dedicated to constantly expanding and updating its product range in order to stay ahead in the market. TRL’s range of products/services is summarized as: ▪ Air ticketing – domestic and international flights, ▪ Packaged Tours – inbound and outbound customized tours, ▪ Hotel Reservation – world-wide hotel reservation and packages, ▪ Visa, Passport, Insurance and other related specialized services. The offer document is silent on its employees’ strength.

ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 11202685 equity shares of Rs. 10 each at a fixed price of Rs. 15 per share to mobilize Rs. 16.80 cr. The RI opens for subscription on February 05, 2026, and will close on March 06, 2026. The company is offering RI in the ratio of 1 for 1 to its eligible stakeholders as of the record date of January 28, 2026. The company is asking for full payment on application for the number of shares applied. Post allotment, RI shares will be listed on BSE SME. The company is spending Rs. 0.75 cr. for this RI process, and from the net proceeds, it will utilize Rs. 12.05 cr. for working capital, and Rs. 4.00 cr. for general corporate purposes. The market lot will be of 3000 shares.

The RI is solely lead managed by the company itself., and Cameo Corporate Services Ltd. is the registrar to the issue. 

Post-RI, company’s current paid-up equity capital of Rs. 11.20 cr. will stand enhanced to Rs. 22.41 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 33.61 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last fiscal, the company has posted total income / net profit, of Rs. 12.05 cr. / Rs. 3.22 cr. (FY25).  For H1 of Y26 ended on September 30, 2025, it earned a net profit of Rs. 1.56 cr. on a total income of Rs. 4.95 cr. Thus, the company has given its financial info for FY25 and H1-FY26, which is surprising as it has missed financial info for FY24. Its NAV as of September 30, 2025 stood at Rs. 2.66 per share.

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: 544242 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 18.05 on January 27, 2026, and opened on an ex-right basis at Rs. 16.99 on January 28, 2026. Since then, it has marked a high/low of Rs. 16.99 / Rs. 14.80. The scrip last closed at Rs. 14.81 as of February 03, 2026. For the last 52 weeks’ it has posted a high/low of Rs. 72.85 / Rs. 14.80.  

The promoters’ holding has been constant at 62.86% for the last half yearly periods ended on September 30, 2025. The counter is currently trading below the RI price and makes it a high risk/low return bet.