Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on June 17, 2025
- The company is primarily engaged in construction related activities, waste management etc.
• It posted inconsistency in its working and has reported minuscule earnings.
• For FY 24, it posted huge loss, that raise major alarm.
• Though its record date is April 18, 2025, the offer document files only on June 11, 2025.
• The counter is well managed above RI price by the vested interests as it has no promoter’s holding.
• Simply stay away from this “High Risk/No Return” at par bet.
PREFACE:
The company is coming out with its RI to mobilize Rs. 48.91 cr., and is opening for subscription on June 16, 2025, and its offer document is dated June 11, 2025, with a record date was of April 18, 2025, but the offer document was uploaded on designated exchange website only on the pre-eve of RI opening. Thus, delayed submission of offer documents for RI is unabatedly going on.
ABOUT COMPANY:
Sylph Technologies Ltd. (STL) is engaged in constructing, operating, maintaining, managing, controlling and administering, Earth Works, farmhouses, Parks, Gardens, Row houses, Duplex Apartments, Commercial, Residential or Industrial building Complexes, Retail Stores, Shopping Centers, Market Yards etc. The company has listed numerous of main objects but whether it will achieve all that?
Furthermore, the company carry on the business of collection, segregation, transportation, trading, processing, composting, recycling, treatment and disposal of all types of waste (whether solid, liquid or gaseous substances) and including municipal solid waste, electronic waste (e waste), construction and demolition debris, bio-medical waste, hazardous waste, sewage, waste water etc. As of March 31, 2024, it had just 9 employees on its payroll.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 489090000 equity shares of Re. 1 each at par value to mobilize Rs. 48.91 cr. The RI is opening for subscription on June 17, 2025, and will close on July 01, 2025. The company is offering RI in the ratio of 15 for 11 to its eligible stakeholders as of the record date of April 18, 2025. The company is asking for full money on application for number of shares applied. Post allotment, shares will be listed on BSE. The company is spending Rs. 0.75 cr. for this RI process, and from the net proceeds, it will utilize Rs. 40.00 cr. for working capital, and Rs. 8.16 cr. for general corporate purposes.
The RI is self- lead managed by the company itself, and Purva Sharegistry (India) Pvt. Ltd. is the registrar to the issue.
Post RI, company’s current paid-up equity capital of Rs. 35.87 cr. will stand enhanced to Rs. 84.78 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 84.78 cr. In “The Issue” info table of page no. 33 of the offer document, the company erred in mentioning post-RI paid-up equity data.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, it has posted a total income/ net profit/ – (loss) of Rs. 5.46 cr. / Rs. 0.76 cr. (FY23), Rs. 16.16 cr. / Rs. – (2.52) cr. (FY24). For H1 of FY25 ended on September 30, 2024, it posted a net profit of Rs. 0.49 cr. on a total income of Rs. 0.75 cr. (by way of other income).
DIVIDEND POLICY:
The company has paid a dividend of 6% each year for the reported periods. 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: 511447 (FV Re. 1).
The scrip last closed on cum-right basis at Rs. 1.04 on April 16, 2025, and opened on an ex-right basis at Rs. 1.03 on April 17, 2025. Since then, it has marked a high/low of Rs. 1.09 / Rs. 0.81. The scrip last closed at Rs. 1.07 as of June 16, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 2.17 / Rs. 0.71. The counter is currently under ASM LT: Stage 1.
The promoters’ holding has been 00%% for the last three quarters ended with March 31, 2025. The counter is well managed above the par value to lure investors.
Conclusion / Investment Strategy
STL is primarily engaged in construction related activities, waste management etc. It posted inconsistency in its working and has reported minuscule earnings. For FY 24, it posted huge loss, that raise major alarm. Though its record date is April 18, 2025, the offer document files only on June 11, 2025. The counter is well managed above RI price by the vested interests as it has no promoter’s holding. Simply stay away from this “High Risk/No Return” at par bet.
Review By Dilip Davda on June 17, 2025
Review Author
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. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. 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 detailed fundamental and financial analysis of companies coming up with IPOs 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 ).
Courtesy: https://www.chittorgarh.com/
