Trustedge Capital BSE RI review - (Not Rated)

•    The company is engaged in customer servicing segment.
•    It operates in a highly competitive and fragmented segment.
•    It has posted minuscule financial performance with inconsistency for the reported periods.
•    Based on its recent set of financial data, the issue appears exorbitantly priced.
•    There is no harm in skipping this pricey and dicey “High Risk/Low Return” bet.

ABOUT COMPANY:
Trustedge Capital Ltd. (TCL) is engaged in customer servicing. Its business relies heavily on employees, particularly those engaged in sourcing, disbursement, collections, and client interactions. It places significant importance on training staff in customer service and communication to maintain service quality and operational efficiency. However, any inability to adequately train, retain, or motivate workforce may lead to higher attrition, reduced service quality, increased costs, and diversion of management attention from core business matters.

As of June 30, 2025, the company employed 9 full-time staff members. While it focuses on employee welfare and maintaining a positive work environment, it cannot rule out the possibility of disputes arising in the future. Any such disputes, or disruptions arising from resignations, dissatisfaction, or industrial action, may interrupt its operations, delay business processes, and affect customer relationships. In particular, prolonged or widespread disruptions could have a material adverse effect on its business, financial condition, and results of operations.

ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 3374428 equity shares of Re. 10 each at a fixed price of Rs. 80 per share to mobilize Rs. 27.00 cr. The RI opens for subscription on October 09, 2025, and will close on October 16, 2025. The company is offering RI in the ratio of 49 for 85 to its eligible stakeholders as of the record date of October 01, 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. 0.38 cr. for this RI process, and from the net proceeds, it will utilize Rs. 19.88 cr. for augmenting its capital base, and Rs. 6.73 cr. for general corporate purposes. 

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

Post-RI, company’s current paid-up equity capital of Rs. 5.85 cr. will stand enhanced to Rs. 9.23 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 73.82 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has posted total income / net profit, of Rs. 1.03 cr. / Rs. 0.56 cr. (FY24), and Rs. 1.09 cr. / Rs. 0.16 cr. (FY25). As per unaudited results filed with the exchange, for Q1 of FY26 ended on June 30, 2025, it has posted a loss of Rs. – (0.16) cr. on a total income of Rs. 0.78 cr. against net profit of Rs. 0.16 cr. on a turnover of Rs. 0.27 cr. for corresponding previous period. The company has posted minuscule performance with inconsistency. Its NAV stood at Rs. 45.17 as of June 30, 2025.

DIVIDEND POLICY:
The company has not paid any dividends for the reported periods. It will adopt a prudent dividend policy, based on its financial performance and future prospects. However, offer document is silent on its dividend policy.

SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 532056 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 132.10 on September 30, 2025, and opened on an ex-right basis at Rs. 110.85 on October 01, 2025. Since then, it has marked a high/low of Rs. 110.85 / Rs. 102.35. The scrip last closed at Rs. 102.35 as of October 08, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 128.06 / Rs. 20.87. The counter is currently under ESM: Stage 2.

The promoters’ holding has seen see-saw trends as it had 67% for the quarters ended with June 30, 2025, and period ended on January 30, 2025. It was hiked to 71.99% for period ended June 03, 2025, raising eyebrows. RI is at a discount of around 21.84% based on its last traded price of Rs. 102.35 as of October 08, 2025. The counter is well maintained above the RI price to tempt investors.