Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on May, 2026
• The company is engaged in developing, scaling up and manufacturing of speciality chemicals and pharma intermediates.
• It marked losses for the reported periods amidst merger process.
• It is operating in a highly competitive and fragmented segment.
• Based on its recent financial data, the issue appears aggressively priced.
• Though the offer is at around 38+% discount to its last traded price, only well-informed/risk seekers/cash surplus investors may park moderate funds for medium term.
ABOUT COMPANY:
Innovassynth Technologies (India) Ltd., (ITIL), – erstwhile known as Innovasynth Investments Ltd., – is
engaged in developing, scaling up and manufacturing of speciality chemicals and pharmaceuticals intermediates. Its business is working capital intensive, and it funds working capital requirements in the ordinary course of business from internal accruals and facilities from banks. It operates in a highly competitive and dynamic market conditions and may have to revise estimates from time to time on account of external circumstances, business or strategy or foreseeable opportunity. Consequently, its fund requirements may also change. Approximately 40% of the Company’s raw materials are imported. Over the last two to three years, the average procurement lead time has ranged between 35 to 45 days. Considering the lead time and to ensure uninterrupted production, the Company is required to maintain a minimum raw material inventory equivalent to approximately 60 days of consumption at any given time.
The Company operates in a highly competitive global environment, facing competition from domestic and international players offering similar or alternative chemical intermediates and custom-synthesized molecules for drug development. Rapid technological advancements, the development of substitute products or synthetic processes, or improvements in delivery timelines could reduce demand for its products or require significant investments in R&D, manufacturing capabilities, and skilled personnel to remain competitive. Failure to keep pace with such technological changes or maintain a competitive edge could materially and adversely affect its business, financial condition, and growth prospects.
ITIL’s merged entity business is working capital intensive, with a significant portion of current assets deployed in inventories and trade receivables. The Company’s ability to manage its working capital efficiently depends on factors such as timely collection of receivables, inventory turnover, credit terms extended to customers and the stability of demand for its products.
Its manufacturing operations involve handling of hazardous chemicals and are subject to approvals from authorities such as the State Pollution Control Boards under environmental laws including the Environment (Protection) Act, 1986 and the Factories Act, 1948. Any failure to comply with such requirements, including conditions relating to effluent treatment, emissions, storage and handling of hazardous substances, may result in suspension of operations, monetary penalties, or cancellation of licenses. The offer document is silent on its employees’ strength data.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 17411380 equity shares of Rs. 10 each at a fixed price of Rs. 40 per share to mobilize Rs. 69.65 cr. The RI opens for subscription on May 08, 2026, and will close on May 18, 2026. The company is offering RI in the ratio of 3 for 13 to its eligible stakeholders as of the record date of April 29, 2026. 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. 0.82 cr. for this RI process, and from the net proceeds, it will utilize Rs. 44.00 cr. for repayment of loan taken from ICICI Bank in full, Rs. 8.50 cr. for working capital, and Rs. 16.32 cr. for general corporate purposes.
The RI is solely lead managed by the company itself., and MUFG Intime India Pvt. Ltd. is the registrar to the issue. The offer documents were made available on designated stock exchange only this morning (i.e., on 07.05.26). Satellite Corporate Services Pvt. Ltd. is the Registrar to the company.
Post-RI, company’s current paid-up equity capital of Rs. 75.45 cr. will stand enhanced to Rs. 92.86 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 371.44 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has (on a consolidated basis) posted total income / net profit/ – (loss), of Rs. NIL. / Rs. – (0.84) cr. (FY24), Rs. NIL cr. / Rs. – (4.69) cr. (FY25). For 9M of FY26 ended on December 31, 2025, it posted a net loss of Rs. – (40.74) cr. on a total income of Rs. 52.01 cr. It posted negative earnings for the recent financial performances, that remains a major concern.
DIVIDEND POLICY:
The company has not paid 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. The offer document is silent on its dividend policy.
SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 533315 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 87.24 on April 28, 2026, and opened on an ex-right basis at Rs. 73.00 on April 29, 2026. Since then, it has marked a high/low of Rs. 76.47 / Rs. 62.28. The scrip last closed at Rs. 64.96 as of May 07, 2026. For the last 52 weeks’ it has posted a high/low of Rs. 125.59 / Rs. 44.99.
The promoters’ holding has been NIL for the last two quarters ended on March 31, 2026, against 31.46% for quarter ended September 30, 2025. 2025. The counter appears rigged and well managed above the RI price, by vested interests to tempt investors.
Conclusion / Investment Strategy
ITIL is engaged in developing, scaling up and manufacturing of speciality chemicals and pharma intermediates. It marked losses for the reported periods amidst merger process. It is operating in a highly competitive and fragmented segment. Based on its recent financial data, the issue appears aggressively priced. Considering offer at around 38+% discount, only well-informed/risk seekers/cash surplus investors may park moderate funds for medium term.
Review By Dilip Davda on May, 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/
