Zerodha (Trading Account)
FREE Equity Delivery and MF
Flat ₹20/trade Intra-day/F&O
Zerodha (Trading Account)
FREE Equity Delivery and MF
Flat ₹20/trade Intra-day/F&O
|
|
• The company is engaged in the business of trading in denim fabrics.
• It is totally depending on the third party contracts for its buying and selling.
• The company posted average financial performance, but sudden boost in bottom lines for FY24 raises eyebrows.
• The RI appears relatively fully priced mirroring its market price trends.
• There is no harm in skipping this "High Risk/Low Return" bet.
ABOUT COMPANY:
Mittal Life Style Ltd. (MLSL) is engaged in trading of Denim Fabrics. It understands that there are endless uses for this durable and versatile fabric and it is continuously being re-invented and adapted for new innovations.
The company is focusing on sourcing of fabric designs from various manufacturers and wider distribution in India. Its flexible and responsive trading operations gives it the ability to quickly respond to change in market demand by sourcing new designs and weaves as per the customers' requirements. Strategically located in Mumbai, it is mainly catering to the customers' requirements of Mumbai and Ulhasnagar region.
Most of its customers are garment manufacturers and have been associated with it since a long time and the company keeps on adding few new customers every year. For sourcing different types and quality of denim fabric, it has tied-up with about 22 Composite mills to get denim fabric manufactured as per its need and requirements. The Company has also tie-up with 6 logistic companies to pick denim fabric from various mills and their warehouse. As of March 31, 2024, it had 15 employees on its payroll.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 147966925 equity shares of Re. 1 each at a fixed price of Rs. 2 per share to mobilize Rs. 29.59 cr. The RI opens for subscription on October 11, 2024, and will close on October 21, 2024. The company is offering RI in the ratio of 1 for 2 to its eligible stakeholders as of the record date of October 03, 2024.The full amount is to be paid on application for number of shares applied. Post allotment, shares will be listed on NSE. The company is spending Rs. 0.69 cr. for this RI process, and from the net proceeds, it will utilize Rs. 21.90 cr. for working capital, and Rs. 7.00 cr. for general corporate purposes.
The issue is self- managed by the company itself, and Bigshare Services Pvt. Ltd. is the registrar to the issue.
Post-RI, company's current paid-up equity capital of Rs. 29.59 cr. will stand enhanced to Rs. 44.39 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 88.78 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, it has posted a total revenue/net profit of Rs. 63.83 cr. / Rs. 0.53 cr. (FY23), and Rs. 68.89 cr. / Rs. 1.72 cr. (FY24).
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 NSE WEBSITE DATA: SCRIP CODE: MITTAL (FV Re. 1).
The scrip last closed on cum-right basis at Rs. 2.33 on October 01, 2024, and opened on an ex-right basis at Rs. 2.24 on October 03, 2024. Since then, it has marked high/low of Rs. 2.20 / Rs. 2.01 The scrip last closed at Rs. 2.21 as of October 08, 2024. For the last 52 weeks' it has posted a high/low of Rs. 3.13 / Rs. 1.39.
The promoters' holding has declined to 37.49% for the last two quarter ended on June 30, 2024, from 48.98% for quarter ended December 31, 2023. The counter is well managed and quoting above the RI price, to tempt investors.
Review By Dilip Davda on October 8, 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 Mittal Life Style 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 Mittal Life Style Rights Issue 2024 worth investing. The Mittal Life Style Rights Issue 2024 Note sets the Rights Issue expectations in systematic way which tells you if Mittal Life Style Rights Issue 2024 good to buy (good or bad / yes or no). The Rights Issue Forecast tells you weather to invest in Mittal Life Style 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
|
|
