Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on March, 2026
• This is the 3rd RI from the company since September 2023.
• The offer document and BSE Web is missing its December 31, 2025 promoter’s holding data.
• The company marked average growth in its financial performances for the reported periods.
• Based on its financial and market trades data, the issue appears fully priced.
• Well-informed investors may park moderate funds for long term.
ABOUT COMPANY:
Bhandari Hosiery Exports Ltd., (BHEL) is one of the leading manufacturers of Knitted Fabric and Garments with strong designing capability. The products are sold by the Company to its domestic and international customers. Over the years, BHEL has established a strong loyal customer base in various countries across continents.
The Company owns State of the Art production facility with designing capability equipped with latest equipment and technology at village Meherban, Rahon Road, Ludhiana, Punjab, India. Ludhiana is an established market place for knitted fabric, garments and embroidery. Ludhiana is extremely well connected with the entire country and with abundant availability of skilled and semi-skilled work force.
BHEL is a Knitted Fabric and Garment manufacturer with designing capabilities and with fabric dyeing and fabric processing. The Company also manufactures processes and trades dyed and un-dyed fabrics. Its manufacturing unit is located at Bhandari House, Village Meherban, Rahon Road, Ludhiana-141007, Punjab, India.
The products of the Company are knitted hosiery garments such as t-shirts, pullovers, sweat shirts, Bermudas, polo-shirts, track suits, pajamas, lowers, ladies knitted tops with embroidery and prints etc. These products are sold in domestic as well as overseas markets. The Company has no Brands of its own. It has not imported any technology from abroad. However, the company has been using imported machinery and in the process is making efforts for absorption of latest technology. It has necessary research and quality control facilities. These efforts have resulted into improvement in efficiency and in quality and reduction in cost of production. As of the date of this offer document, it had 378 employees on its payroll.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 192039722 equity shares of Re. 1 each at a fixed price of Rs. 2.56 per share to mobilize Rs. 49.30 cr. This is the 3rd RI from the company since September 2023. The RI opens for subscription on March 06, 2026, and will close on March 20, 2026. The company is offering RI in the ratio of 4 for 5 to its eligible stakeholders as of the record date of February 25, 2026. The company is asking for full money on application for number of shares applied. Post allotment, RI shares will be listed on BSE and NSE. The company is spending Rs. 1.00 cr. for this RI process, and from the net proceeds, it will utilize Rs. 6.87 cr. for repayment of loans, Rs. 34.00 cr. for working capital, and Rs. 7.43 cr. for general corporate purposes. Surprisingly, no 3rd RI offer documents were available on BSE Website till 16.45 pm of March 04, 2026.
The RI is solely lead managed by the company itself., and MUFG Intime India Pvt. Ltd. is the registrar to the issue.
Post-RI, company’s current paid-up equity capital of Rs. 24.00 cr. will stand enhanced to Rs. 43.21 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 110.61 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has (on a consolidated basis) posted total revenue / net profit, of Rs. 267.06 cr. / Rs. 6.53 cr. (FY24), Rs. 278.82 cr. / Rs. 7.71 cr. (FY25). For H1 of FY26 ended on September 30, 2025, it posted a net profit of Rs. 3.69 cr. on a total revenue of Rs. 131.34 cr. Its NAV stood at Rs. 6.51 as of September 30, 2025. It marked average growth in the financial performances for the reported periods.
DIVIDEND POLICY:
The company has paid dividends at 1% since FY19, and for FY25 it hiked the dividend to 2%. It has adopted a dividend policy, based on its financial performance and future prospects.
SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 512608 (FV Re. 1).
The scrip last closed on cum-right basis at Rs. 3.61 on February 24, 2026, and opened on an ex-right basis at Rs. 3.46 on February 25, 2026. Since then, it has marked a high/low of Rs. 3.66 / Rs. 2.63. The scrip last closed at Rs. 2.82 as of March 04, 2026. For the last 52 weeks’ it has posted a high/low of Rs. 5.80 / Rs. 2.61.
The promoters’ holding has been constant at 31.02% till quarter ended September 30, 2025, and latest tally as of December 31, 2025, is missing. The counter is currently well managed by vested interests and traded above the RI price, to lure investors.
Conclusion / Investment Strategy
This is the 3rd RI from BHEL since September 2023. The offer document and BSE Web is missing its December 31, 2025 promoter’s holding data. The company marked average growth in its financial performances for the reported periods. Based on its financial and market trades data, the issue appears fully priced. Well-informed investors may park moderate funds for long term
Review By Dilip Davda on March, 2026
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/
