Vertax Securities BSE RI review - (Not Rated)

•    The company is engaged in the financial services with major focus on stock broking.
•    The company posted minuscule financial performances for the reported periods.
•    It has posted losses since FY25 and that raise alarm.
•    The RI is at a par value, but its recent financial performance is not supporting.
•    Only well informed/cash surplus/risk seekers may park moderate funds for long term.

ABOUT COMPANY:
Vertex Securities Ltd., (VSL) operates in the Financial Services Industry with focus on stock broking. The financial services sector consists of banking, investing, taxes, real estate, and insurance, all of which provide different financial services to people and corporations. Brokers—either human or self-directed online services—facilitate the buying and selling of securities, taking a commission for their efforts. Financial advisors may charge an annual fee based on assets under management (AUM) and direct several trades in the pursuit of constructing and managing a well-diversified portfolio.

VSL is a premier brokerage house in India on the fast growth track. In the last one-decade, it has emerged as a powerhouse in the financial services industry. The company started functioning in the stock market in 1993. The Company currently provides brokerage services in equity, equity derivatives, currency derivatives and in commodities segments through network of branches and franchisees. Transwarranty Finance Ltd. holds over 53% shares in the company. As of March 31, 2025, it had 75 employees on its payroll.

ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 74012189 equity shares of Rs. 2 each at par value to mobilize Rs. 14.80 cr. The RI opens for subscription on March 20, 2026, and will close on March 27, 2026. The company is offering RI in the ratio of 1 for 1 to its eligible stakeholders as of the record date of March 12, 2026. The company is asking for 25% (i.e., Rs. 0.50 per share) on application for number of shares applied. Balance Rs. 1.50 per share to be paid by one or more calls subsequently as decided by the company. Post allotment, RI 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. 10.65 cr. for working capital, and Rs. 3.65 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. 

Post-RI, company’s current paid-up equity capital of Rs. 14.80 cr. (74012189 equity shares) will stand enhanced to Rs. 29.60 cr. (148024378 shares). Based on the RI pricing, the company is looking for a market cap of Rs. 29.60 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. 8.40 cr. / Rs. 0.47 cr. (FY24), Rs. 8.37 cr. / Rs. – (0.70) cr. (FY25). For 9M of FY26 ended on December 31, 2025, it posted a loss of Rs. – (0.91) cr. on a total income of Rs. 6.04 cr. Its NAV stood at Rs. 1.39 as of March 31, 2025. 

DIVIDEND POLICY:
The company has not paid any dividends in the past. 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: 531950 (FV Rs. 2).
The scrip last closed on cum-right basis at Rs. 3.99 on March 11, 2026, and opened on an ex-right basis at Rs. 3.24 on March 12, 2026. Since then, it has marked a high/low of Rs. 3.45 / Rs. 2.52. The scrip last closed at Rs. 2.72 as of March 17, 2026. For the last 52 weeks’ it has posted a high/low of Rs. 4.32 / Rs. 2.26. The counter is currently under GSM: Stage 0.

The promoters’ holding has been constant at 73.41% for the last two quarters ended on September 30, 2025. The counter is currently well managed by vested interests and traded above the RI price, to tempt investors.