Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on July 11, 2025
- The company is engaged in delivering IT infrastructure and services.
• It marked drastic fall in its top line for FY25 and posted losses.
• Promoters’ high holding it the only attraction.
• The counter is well maintained above the RI price.
• There is no harm in skipping this risky bet.
ABOUT COMPANY:
GVP Infotech Ltd. (GIL) erstwhile known as Fourth Dimension Solutions Ltd.- is an Information Technology (IT) Infrastructure, Technical Support Services and Operations Outsourcing Company. The Company is engaged in designing, developing, deploying and delivering IT infrastructure and services. It provides range of information technology and consultancy services, including infrastructure services, end user IT support, IT asset life cycle, and integrated solutions. FDSL enables large and medium enterprises, Government organization and institutes to reduce their total cost of ownership using an onsite and on-call services, deliver strategic, personalized, full-service Technical Support services solutions with quality, value and commitment to total customer satisfaction Its enterprise offerings include compute infrastructure solutions that involve the supply and installation of mission-critical IT assets in Application Delivery, Network and Data Security, Surveillance and whole suite of data storage and back-up solution apart from servers, operating systems, and commercial off-the-shelf software and hardware.
Its service assignments are mostly tender based contracts awarded to it by Local/ State/ Central Government bodies. GIL has successfully entered the Payment Aggregator business after obtaining the RBI license. Its PA business operates under proprietary, in-house developed technology platform, ARTHPAY, which ensures seamless, secure, and scalable digital transactions for businesses across various industries. A Payment Aggregator (PA) is a financial technology entity that facilitates online payment processing by consolidating various payment methods, including credit/debit cards, UPI, net banking, wallets, and more. As an intermediary between merchants and banks, a PA streamlines transactions, ensuring smooth fund settlements while enhancing the overall digital payment experience.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 21172007 equity shares of Re. 2 each at a fixed price of Rs. 10 per share to mobilize Rs. 21.17 cr. The RI is opening for subscription on July 14, 2025, and will close on July 24, 2025. The company is offering RI in the ratio of 13 for 100 to its eligible stakeholders as of the record date of June 30, 2025.
The company is asking for 50% money (i.e., Rs. 5 per share) on application for number of shares applied, and the balance by final call as determined by it from time to time. Post allotment, shares will be listed on NSE. The company is spending Rs. 1.00 cr. for this RI process, and from the net proceeds, it will utilize Rs. 17.50 cr. for working capital, and Rs. 2.67 cr. for general corporate purposes.
The RI 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. 32.57 cr. will stand enhanced to Rs. 36.81 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 184.03 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, it has posted a total revenue/ net profit/ – (loss), of Rs. Rs. 33.59 cr. / Rs. 2.84 cr. (FY24), Rs. 5.76 cr. / Rs. – (2.64) cr. (FY25). Drastic fall in its top line with losses for FY25 raise eyebrows and concern over its likely trends going forward.
DIVIDEND POLICY:
The company has not declared any dividends for the reported periods of the offer document (as declared by its board of directors on page no. 99 of the offer document. But it has adopted a dividend policy based on its financial performance and future prospects. As per NSE Website, it has paid a dividend of Rs. 0.15 per share in July 2025, and Rs. 0.10 per share in September 2024. This is really shocking and surprising, a clarification is needed on this aspect from concerned bodies.
SCRIP PERFORMANCE: BASED ON NSE WEBSITE DATA: SCRIP CODE: GVPTECH (FV Rs. 2).
The scrip last closed on cum-right basis at Rs. 11.19 on June 27, 2025, and opened on an ex-right basis at Rs. 11.75 on June 30, 2025. Since then, it has marked a high/low of Rs. 12.00 / Rs. 9.95. The scrip last closed at Rs. 10.85 as of July 11, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 15.00 / Rs. 07.61.
The promoters’ holding has been constant around 86.98+% for the last two quarters ended with March 31, 2025, against 88.98% for quarter ended September 30, 2024. The counter is currently trading around the RI price making it risky bet.
Conclusion / Investment Strategy
GIL is engaged in delivering IT infrastructure and services. It marked drastic fall in its top line for FY25 and posted losses. Promoters’ high holding it the only attraction. The counter is well maintained above the RI price. There is no harm in skipping this risky bet.
Review By Dilip Davda on July 11, 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/
