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• The company is engaged in the trading and investing in the stock markets for listed and unlisted shares.
• It has posted minuscule financial performance so far and wants Rs. 34.96 cr. from the market.
• It posted inconsistency in its performance for the reported periods.
• Though this is a at par RI, it can be termed as "High Risk/No Return" bet that one can avoid.
ABOUT COMPANY:
Khoobsurat Ltd. (KL) is engaged in the business of purchase and selling of stocks and shares. It purchases and sells stock and shares both on short-term and long term basis. Its inventories mainly consist of quoted shares. The company also purchases stake in unlisted Companies. Currently it operates through Kolkata office.
The Company is also engaged in making investment in the form of Equity in various companies, both listed and unlisted. It is not bound by pre-defined restrictions in regard to search for investment opportunities. KL invests in companies in a variety of markets and stages. It needs sufficient financial liquidity and resources to be able to meet demands and opportunities from its growth plans as they arise over time. The investment strategies are mostly long-term and are based on an analysis of investment fundamentals. As of the date of filing this offer document, it had just 8 employees on its payroll.
ISSUE DETAILS:
The company is coming out with a Rights Issue (RI) of 349591421 equity share of Re. 1 each at par value to mobilize Rs. 34.96 cr. The RI is opening for subscription on May 15, 2024, and will close on May 24, 2024. The company is offering RI in the ratio of 50 for 19 shares to its eligible stakeholders as of the record date of May 04, 2024. The full amount is to be paid on application for the number of shares applied. Post allotment, shares will be listed on BSE and MSEI. The company is spending Rs. 1.50 cr. for this RI process, and from the net proceeds, it will utilize Rs. 3.50 cr. for purchase of corporate offices in Mumbai and Kolkata, Rs. 6.00 cr. for investment in Salcete Brewing Ltd., Rs. 17.00 cr. for purchase of tradable and strategic, securities and stock, and Rs. 6.96 cr. for general corporate purposes.
The issue is self-managed by the company itself and Purva Sharegistry (I) Pvt. Ltd. is the registrar to the issue.
Post-RI, company's current paid-up capital of Rs. 13.28 cr. will stand enhanced to Rs. 48.24 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 48.24 cr. There is garble in The Issue table where the company is showing pre and post RI same paid-up capital.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has posted a total income of Rs. 0.83 cr. / Rs. 0.24 cr. (FY22), and Rs. 0.73 cr. / Rs. 0.27 cr. (FY23). For 9M of FY24 ended on December 31, 2023, it earned a net profit of Rs. 0.21cr. on a total income of Rs. 0.67 cr. Thus while company's top line is just around Rs. 0.90 cr. it is asking for a funding of Rs. 34.96 cr. with at par RI.
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: 535730 (FV Re. 1).
The scrip last closed on cum-right basis at Rs. 1.43 on May 02, 2024, and opened on an ex-right basis at Rs. 1.17 on May 03, 2024. Since then, it has marked a high/low of Rs. 1.34 / Rs. 1.17. The scrip last closed at Rs. 1.30 as of May 14, 2024. For the last 52 weeks' it has posted a high/low of Rs. 1.63 / Rs. 0.74. The counter is currently under GSM: Stage 0 / ASM LT: Stage 1.
The promoters' holding has been constant at 0.45% for the last three quarters ended with March 31, 2024. The counter is well managed above the par value to tempt investors.
Review By Dilip Davda on May 14, 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 Khoobsurat 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 Khoobsurat Rights Issue 2024 worth investing. The Khoobsurat Rights Issue 2024 Note sets the Rights Issue expectations in systematic way which tells you if Khoobsurat Rights Issue 2024 good to buy (good or bad / yes or no). The Rights Issue Forecast tells you weather to invest in Khoobsurat Rights Issue 2024 by providing Rights Issue recommendations i.e. subscribe, avoid and neutral.
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