Zerodha (Trading & Demat Account)
FREE Equity Delivery and MF
Flat ₹20/trade Intra-day/F&O
Zerodha (Trading & Demat Account)
FREE Equity Delivery and MF
Flat ₹20/trade Intra-day/F&O
|
|
• The company is engaged in financial related digital offerings, which is a highly competitive and fragmented segment.
• It posted minuscule financial performance for the reported periods.
• Doubled equity capital post-RI, may face its servicing issue.
• Based on its performances so far, it's a "High Risk/No Return" at par bet.
• There is no harm in skipping it.
ABOUT COMPANY:
GACM Technologies Ltd. (GTL) was originally incorporated as Brilliant Securities Ltd. in 1995, later it changed its name to Stampede Capital Ltd. in 2011, and again it changed its name to GACM Technologies Ltd. in May 2023.
Earlier the Company was engaged in Financial Consultancy which included consultancy on all corporate and allied matters and engagement in all acts of businesses as may be related or ancillary to the above including but not limited to designing/developing of software solutions related to the risk management and Internal Control Management functions of the Companies including vending, marketing, and installation of the same for Corporate Clients.
The Company raised funds of Rs. 10.03 Crores and the same were utilized towards business overheads and to pay outstanding current liabilities of the Company. During the three quarters ending June 2023, September 2023 and December 2023 and March 2024. The offer document is silent on its employee's strength.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 340287057 equity share of Re. 1 at par value to mobilize Rs. 34.03 cr. The RI is opening for subscription on July 31, 2024, and will close on August 14, 2024. The company is also offering RI in the ratio of 1 for 1 and 59109227 shares with DVR (Differential Voting Rights) shares of Re. 1 each at par to mobilize Rs. 5.91 cr. thus making the overall RI size of Rs. 39.94 cr. This offer is being made to its eligible stakeholders as of the record date of July 16, 2024. The company is asking full amount on application for the number of shares applied. Post allotment, shares will be listed on BSE and NSE. The company is spending Rs. 0.50 cr. for this RI process, and from the net proceeds, it will utilize Rs. 13.77 cr. for capex on purchase of software and hardware/servers, Rs. 7.00 cr. for repayment/prepayment of certain borrowings, Rs. 4.97 cr. for investment in wholly owned subsidiary Gayiadi Fintech, Rs. 3.80 cr. for acquisitions, and Rs. 9.90 cr. for general corporate purposes.
While the issue is self-managed by the company itself, Navigant Corporate Advisors Ltd. is the advisor to the issue and Venture Capital & Corporate Investments Pvt. Ltd. is the registrar to the issue.
Post-RI, company's current paid-up equity capital will stand enhanced to Rs. 68.06 cr. and Rs. 11.82 cr. for DVR equity. Thus the overall paid-up equity capital will be increased to Rs. 79.88 cr. (doubled)
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has (on a consolidated basis) posted total revenue/net profit/ -(loss) of Rs. 10.44 cr. / Rs. - (1.18) cr. (FY23), and Rs. 7.51 cr. / Rs. 1.13 cr. (FY24). Thus it has posted minuscule performance against its paid-up equity level. It is surprising to note that for FY23 it posted loss on higher top line, but for FY24 it earned profits on lower top line. This perhaps appears to be a window dressing ahead of RI issue to impress 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. However, the offer document is silent on its dividend policy.
SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 531723 (FV Re.1).
The scrip last closed on cum-right basis at Rs. 1.38 on July 15, 2024, and opened on an ex-right basis at Rs. 1.20 on July 16, 2024. Since then, it has marked a high/low of Rs. 1.36 / Rs. 1.20. The scrip last closed at Rs. 1.25 as of July 29, 2024. For the last 52 weeks' it has posted a high/low of Rs. 2.52 / Rs. 0.81.
The promoters' holding has been constant at 8.27% for the last three quarters ended with June 30, 2024. The counter is well managed by the vested interest parties above the par value to lure investors.
Review By Dilip Davda on July 30, 2024
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on the information published here. My reviews do not cover GMP market and operators game plans. Any reader taking decisions based on any information published here does so entirely at their own risk. Investors should bear in mind that any investment in stock markets is subject to unpredictable market-related risks. The above information is based on RHP and other documents available as of date coupled with market perception. The author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
The GACM Technologies Rights Issue 2024 Analysis helps you to understand about the company, offer detail, valuation, capital structure and financial performance. Our SEBI registered Rights Issue Analysts tells you if GACM Technologies Rights Issue 2024 worth investing. The GACM Technologies Rights Issue 2024 Note sets the Rights Issue expectations in systematic way which tells you if GACM Technologies Rights Issue 2024 good to buy (good or bad / yes or no). The Rights Issue Forecast tells you weather to invest in GACM Technologies Rights Issue 2024 by providing Rights Issue recommendations i.e. subscribe, avoid and neutral.
Add a public comment...
FREE Intraday Trading (Eq, F&O)
Flat ₹20 Per Trade in F&O
|
|
