Yamini Investment BSE RI review - (Avoid)

•    The company is engaged in two segments i.e., investment business and agriculture business.
•    It marked minuscule performances till FY24, in pre-RI period only it posted boosted top and bottom lines.
•    Based on its financial and market price data, the issue appears fully priced. 
•    There is no harm in skipping this “High Risk/Low Return” bet.

ABOUT COMPANY:
Yamini Investments Co. Ltd. (YICL) is currently engaged in the business into two segments i.e., Investment Business and Agriculture Business. Under the investment business, it mulls carrying to buy, sell, or otherwise deal in shares, stocks, units, debentures, debenture stock bonds, mortgages, obligations and securities of any kind issued or guaranteed by any company, corporation or undertaking of whatever nature whether incorporated or otherwise. Under Agriculture business, it aims to prepare, manufacture, process, market, trade, import, export, improve, sell and deal in all kinds of agro/agri/food products including but not limited to spices, oil seeds, grains, vegetables, herbs, pickles and other items derived from agricultural, farming or relevant activities. Thus, it is planning to move in a highly competitive and fragmented segments.

As of the date of this offer document, it had just 8 employees on its payroll.

ISSUE DETAILS:
The company is coming out with its Right Issue (RI) of 394294800 equity shares of Re. 1 each at a fixed price of Rs. 1.20 per share to mobilize Rs. 47.32 cr. The RI opens for subscription on May 27, 2025, and will close on June 23, 2025. The company is offering RI in the ratio of 3 for 4 to its eligible stakeholders as of the record date of May 13, 2025. The company is asking full money on application for the number of shares applied. Post allotment, shares will be listed on BSE. The company is spending Rs. 0.30 cr. for this RI process, and from the net proceeds, it will utilize Rs. 35.66 cr. for working capital, and Rs. 11.36 cr. for general corporate purposes.

This RI is self-managed by the company itself, and Skyline Financial Services Pvt. Ltd., is the registrar to the issue. 

Post-RI, company’s current paid-up equity capital of Rs. 52.57 cr. will stand enhanced to Rs. 92.00 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 110.40 cr.

FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has posted a total income of Rs. 6.39 cr. / Rs. 0.21 cr. (FY23), Rs. 9.91 cr. / Rs. 0.25 cr. (FY24). For 9M of FY25 ended on December 31, 2024, it earned a net profit of Rs. 4.36 cr. on a total income of Rs. 45.99 cr. The boosted top and bottom lines in pre-RI period appear to be a window dressing to tempt investors. 

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: 511012 (FV Re. 1).
The scrip last closed on cum-right basis at Rs. 1.61 on May 12, 2025, and opened on an ex-right basis at Rs. 1.47 on May 13, 2025. Since then, it has marked a high/low of Rs. 1.65 / Rs. 1.47. The scrip last closed at Rs. 1.63 as of May 23, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 2.33 / Rs. 0.79. 

The promoters’ holding has been constant at 1.78% for the last three quarters ended with March 31, 2025. The counter is well managed above the RI price to lure investors.