Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on June 22, 2025
- The company is in the business of trading and marketing variety of products and also in corporate advisory services.
• This is the 2nd RI from the company since May 2024.
• Boosted top and bottom lines for FY25 surprises one and all and raise eyebrows as it is operating in a highly competitive and fragmented segment.
• Though the RI is at par value, it’s a “High Risk/Low Return” bet.
• There is no harm in skipping this risky at par bet.
PREFACE:
The company is coming out with its RI to mobilize Rs. 49.47 cr., and is opening for subscription on June 23, 2025, and its offer document is dated June 16, 2025, with a record date of June 13, 2025, but the offer document was not uploaded on the designated exchange till noon of June 19, 2025. Thus, delayed submission of offer documents for RI is unabatedly going on.
ABOUT COMPANY:
IFL Enterprises Ltd. (IEL) was a subsidiary of India Finsec Limited, and represents the other business activities of the group. It was engaged in the business of corporate advisory, debt syndication and execution services with paramount focus on small and medium enterprises (SMEs) in corporate and non-corporate sector. Further it was also involved in the business of trading in textile products primarily fabrics.
In the year 2021, The Company underwent change of Control in terms of Regulation 25 of Securities Exchange Board of India (Substantial Acquisition and Takeover of Shares) Regulation, 2011. Further, in the year 2022, the company altered its object clause after passing special resolution dated April 24th, 2022 to carry on the business of manufacturing, importing & exporting, trading of all type of paper for writing, wrapping, kraft and semi-kraft, cloth paper, wall paper, paper films (plain and printed) and to do all types of metals and metal compounds whatsoever, whether ferrous or non-ferrous and buying, selling, reselling, transporting, storing, developing, promoting, marketing or supplying, trading, dealing in all type of goods on retail as well as on wholesale basis in India or elsewhere and also act as Commission agent Stockiest on behalf of others.
Also, to carry on the business as exhibitors of various goods, services and merchandise and to undertake the necessary activities to promote sales of goods, services and merchandise manufactured/dealt with/provided by the Company. And to acquire share in various business entities including but not limited to companies, partnership firms LLPs and other legal entities in India or outside India by establishing the relationship of holding-subsidiary, joint venture and associate entities. Company entered into new business to carry on the business of import, export, distribute, sale, purchase or deal in agriculture produce of all description like fruits, vegetable, seeds, organic products and herbal products and to do trading of the agri-commodities whether perishable or non- perishable and also do stocking of the same at their own premises or leased premises and promote & sell their own brand along with farmer produce and trade in all the products required for cultivation, harvesting, production and developments of seeds, vegetable, fruits and herbal items.
Also, to grow, produce, harvest raise or deal in agriculture produce and to set up processing unit, manufacturers, producers, processors, growers, fermentators, distillers, refiners, makers, inventors, convertors, importers, exporters, traders, buyers, sellers, retailers, wholesalers, suppliers, indenters, bottlers, packers, movers, preservers, stockiest, agents, merchants, distributors, consignors, jobbers, brokers or otherwise deal in all kinds of fertilizers, manures, plant and animal foods, pesticides, insecticides, fungicides and all types of chemicals used in apiculture, pisciculture, sericulture, horticulture, poultry farming and animal husbandry. As of February 27, 2024, it had just 5 employees, thus it is missing latest tally on this count.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 494719229 equity shares of Re. 1 each at par value to mobilize Rs. 49.47 cr. The RI is opening for subscription on June 23, 2025, and will close on June 30, 2025. The company is offering RI in the ratio of 60 for 91 to its eligible stakeholders as of the record date of June 13, 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. 0.74 cr. for this RI process, and from the net proceeds, it will utilize Rs. 36.36 cr. for working capital, and Rs. 12.37 cr. for general corporate purposes. There is a garble in the working capital provisions on page no. 45 of the offer document. This is the 2nd RI from the company since May 2024.
The 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. 75.03 cr. will stand enhanced to Rs. 124.50 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 124.50 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, it has (on a consolidated basis) posted a total income/ net profit of Rs. 9.47 cr. / Rs. 0.52 cr. (FY23), Rs. 9.92 cr. / Rs. 0.85 cr. (FY24), Rs. 123.22 cr. / Rs. 2.99 cr. (FY25).
DIVIDEND POLICY:
The company has paid a dividend of 0.01% each year for FY23 and FY24. 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: 540377 (FV Re. 1).
The scrip last closed on cum-right basis at Rs. 1.14 on June 12, 2025, and opened on an ex-right basis at Rs. 1.11 on June 13, 2025. Since then, it has marked a high/low of Rs. 1.21 / Rs. 1.04 The scrip last closed at Rs. 1.70 as of June 20, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 1.70 / Rs. 0.56. The counter is currently under ESM: Stage 1.
The promoters’ holding has been constant around 0.00% 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
IEL is in the business of trading and marketing variety of products and also in corporate advisory services. This is the 2nd RI from the company since May 2024. Boosted top and bottom lines for FY25 surprises one and all and raise eyebrows as it is operating in a highly competitive and fragmented segment. Though the RI is at par value, it’s a “High Risk/Low Return” bet. There is no harm in skipping this risky at par bet.
Review By Dilip Davda on June 22, 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/
