Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on September 2, 2025
- The company underwent change of management and also its business model from financial services to construction related equipment and services offerings.
• It marked wild fluctuations in its financial data as well as trading prices.
• Its equity is rising 16-fold post RI, and remains a major concern.
• Based on its latest market price and the Q1 working, the issue appears lucratively priced.
• RI is offered at a discount of around 77%, making it an attractive bet.
• Well-informed investors may park moderate fund for long term.
ABOUT COMPANY:
Arunis Abode Ltd. (AAL) erstwhile known as M B Parikh Finstocks Ltd., is presently engaged in the business of contracting, leasing, hiring and renting of earth moving equipment. Beyond equipment, the Company undertakes a wide range of civil projects, including but not limited to factory and refinery expansions and fabrication work. It further supports customers by providing essential materials like equipment, steel, cement, etc. ensuring their specific project needs are met comprehensively.
ASL was originally incorporated as M.B. Parikh Finstocks Private Limited on April 8, 1994, and was involved in the business of stock broking. Shortly thereafter, it was converted into a public limited company and received a fresh certificate of incorporation on October 26, 1994. The Company was subsequently listed on BSE on May 3, 1995.
On December 16, 2019, it underwent a significant change in ownership through a takeover and was renamed as “Arunis Abode Limited”. Following this transition, the Company shifted its focus from stock broking to real estate development and consulting. A further takeover took place on February 02, 2024, after which the Company focused its operations into the leasing and renting of heavy earth-moving equipment as well as civil works. These strategic transitions have enabled the Company to adapt to evolving market opportunities and expand its business portfolio.
The Company is currently operating in India through its office located in Surat, Gujarat. It provides on a contract, lease, hire and rental basis, a large and sophisticated fleet of earth-moving equipment such as excavators, dozers, backhoe loaders, loaders, skid loaders, industrial vacuum cleaners, road sweeper machines, all types of cranes and other related machineries. AAL provides licensed professionals and personnel for operating such machineries. It also offers comprehensive repair and maintenance for such machineries with own team of mechanics, alongside consultancy, support, and technical services. The Company also specializes in expansion and fabrication projects for a wide range of industrial facilities, including factories and refinery plants. Beyond such major undertakings, it also provides comprehensive mechanical works ranging from welding services to manpower supply. AAL also provides other materials for the civil works including equipment, steel, cement, etc. as per the needs of the customers. Its commitment extends to delivering various other tailored solutions, ensuring all customer needs are met with.
The Company boasts a distinguished clientele while working and continuing to collaborate with industry leaders based in the mining, real estate, infrastructure and steel industries. The offer document is silent on its employees’ strength data.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 48000000 equity shares of Rs. 10 each at a fixed price of Rs. 12.60 per share to mobilize Rs. 60.48 cr. The RI opens for subscription on September 03, 2025, and will close on September 11, 2025. The company is offering RI in the ratio of 16 for 1 to its eligible stakeholders as of the record date of August 26, 2025. The company is asking for full money on application for number of shares applied. Post allotment, RI shares will be listed on BSE. The company is spending Rs. 0.81 cr. for this RI process, and from the net proceeds, it will utilize Rs. 49.17 cr. for acquiring 100% shareholding in Prasad Earth Movers Pvt. Ltd., and Rs. 10.50 cr. for acquiring business of Kalind Earth Movers.
The RI is self-managed by the company itself, and MUFG Intime India Pvt. Ltd. is the registrar to the issue. Mark Corporate Advisors Pvt. Ltd. is the advisor to the RI.
Post-RI, company’s current paid-up equity capital of Rs. 3.00 cr. will stand enhanced to Rs. 51.00 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 64.26 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has posted total income / net profit/ – (loss), of Rs. 1.22 cr. / Rs. 0.43 cr. (FY24), and Rs. 0.001 cr. / Rs. – (0.17) cr. For Q1 of FY26 ended on June 30, 2025, it earned a net profit of Rs. 5.25 cr. on a total income of Rs. 13.60 cr.
DIVIDEND POLICY:
The company has not declared any dividends for the reported periods of the offer document. It will adopt a prudent dividend policy, based on its financial performance and future prospects. However, the offer document is silent on its dividend policy. As per BSE filing, it has announced a 10% interim dividend in August 2025.
SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 523965 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 635.85 on August 25, 2025, and opened on an ex-right basis at Rs. 49.90 on August 26, 2025. Since then, it has marked a high/low of Rs. 53.93 / Rs. 49.90. The scrip last closed at Rs. 53.93 as of September 02, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 53.93 / Rs. 1.98. Based on its last traded price of Rs. 53.93, the RI is at a discount of around 76.64%.
The counter is currently under Periodic Call Auction compelling thin volume. It is also under GSM: Stage 0, and ESM: Stage 2.
The promoters’ holding has been around 70.37% for the last quarter ended with June 30, 2025, against 70.17% for previous two quarters ended with March 31, 2025. The counter is well managed above the RI price to tempt investors.
Conclusion / Investment Strategy
AAL underwent change of management, its name and also its business model from financial services to construction related equipment and services offerings. It marked wild fluctuations in its financial data as well as trading prices. Its equity is rising 16-fold post RI, and remains a major concern. Based on its latest market price and the Q1 working, the issue appears lucratively priced. RI is offered at a discount of around 77%, making it an attractive bet. Well-informed investors may park moderate fund for long term.
Review By Dilip Davda on September 2, 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/
