• The company is engaged in the business of manufacturing, and trading of pharma, dyestuffs, chemicals, and dealing in medical/surgical devices, etc.
• It has posted erratic financial performances for the reported periods with losses in the last one and half year with declined top lines.
• Based on its recent financial data, the RI appears greedily priced.
• Declining promoters’ holding raise major concern.
• There is no harm in skipping this pricey and dicey RI.
ABOUT COMPANY:
Vineet Laboratories Ltd. (VLL) is primarily engaged in the business of manufacturing, exporting, importing, and distributing drugs, bulk drugs, pharmaceuticals, pesticides, dyestuffs, chemicals, and intermediaries of various kinds, including formulations such as liquids, capsules, tablets, powders, antibiotics, enzymes, and surgical aids, and their application with indigenous and/or imported technology.
It also operates as a dealer, manufacturer, and consultant in chemical, medicinal, surgical, and scientific apparatus and environmental management systems. The Company undertakes manufacturing and trading of organic, inorganic, and biochemical substances and formulations using advanced chemical processes. It is actively involved in research, development, and contract research in pharmaceuticals, biotechnology, healthcare, agricultural, and industrial sectors, focusing on the discovery and development of innovative molecules, products, and technologies.
Further, the Company develops and maintains laboratories and research stations and undertakes collaborations in India and abroad for research and product development in pharmaceutical, biotech, Ayurvedic, and Unani fields, as well as educational and management programmes in pharmaceutical sciences. The offer document is silent on its employees’ strength data.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 9987258 equity shares of Rs. 10 each at a fixed price of Rs. 30 per share to mobilize Rs. 29.96 cr. The RI opens for subscription on January 01, 2026, and will close on January 21, 2026. The company is offering RI in the ratio of 13 for 12 to its eligible stakeholders as of the record date of December 23, 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 and NSE. The company is spending Rs. 0.75 cr. for this RI process, and from the net proceeds, it will utilize Rs. 2.70 cr. for setting up of effluent treatment plant, Rs. 2.84 cr. for repayment of bank loan, Rs. 16.96 cr. for expansion of business by setting up of new production facility, Rs. 6.71 cr. for general corporate purposes.
The RI is solely lead managed by the company itself., and Bigshare Services Pvt. Ltd. is the registrar to the issue. Venture Capital & Corporate Investments Pvt. Ltd. is the RTA for the company.
Post-RI, company’s current paid-up equity capital of Rs. 9.22 cr. will stand enhanced to Rs. 19.21 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 57.62 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has posted total income / net profit/ - (loss), of Rs. 150.59 cr. / Rs. 1.03 cr. (FY24), Rs. 75.00 cr. / Rs. – (20.19) cr. (FY25). For H1 of FY26 ended on September 30, 2025, it posted a loss of Rs. – (0.47) cr. on a total income of Rs. 24.86 cr. Its NAV stood at Rs. 13.16 as of September 30, 2025. It posted erratic financial performances so far.
DIVIDEND POLICY:
The company has paid a dividend of 10% in September 2022. 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: 543298 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 43.30 on December 22, 2025, and opened on an ex-right basis at Rs. 39.71 on December 23, 2025. Since then, it has marked a high/low of Rs. 41.08 / Rs. 35.66. The scrip last closed at Rs. 36.70 as of December 29, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 55.31 / Rs. 21.29. The counter is currently under ASM LT: Stage 1.
The promoters’ holding declined to 15.89% for the quarter ended September 20, 2025, against 35.85% for quarter ended March 31, 2025. 55.53% for the last three quarters ended with September 30, 2025. The counter is trading above the RI price on a thin volume, with vested interest operators.
Review By Dilip Davda on December 29, 2025
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Dilip Davda
SEBI Registered Research Analyst – Mumbai
Registration No.: INH000003127 (Perpetual)
Email: dilip_davda@rediffmail.com
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
