– By Dilip Davda
- This is the 2nd RI from the company since October 2025.
- The company posted erratic financial performances so far.
- Over 10-fold jump in its post-RI equity may raise its servicing issue.
- There is no harm in skipping this at par “High Risk/Low Return” bet.
ABOUT COMPANY:
Magnus Steel & Infra Ltd., (MSIL) erstwhile known as Magnus Retail Ltd., is establishing a trading enterprise specializing in the supply of essential steel and infrastructure raw materials, including TMT Reinforcement Steel, Industrial Steel, MS (Mild Steel) Products, AAC (Autoclaved Aerated Concrete) Blocks, Readymix Concrete, and Cement.
These materials are fundamental to the construction and infrastructure sectors, which are experiencing significant growth in India. As of March 31, 2026, it had 12 employees on its payroll.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 39887540 equity shares of Rs. 10 each at a at apar value to mobilize Rs. 39.89 cr. The RI opened for subscription on November 12 2026, and will close on December 01, 2026. The company is offering RI in the ratio of 59 for 5 to its eligible stakeholders as of the record date of October 27, 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. 0.50 cr. for this RI process, from the net proceeds, Rs. 30.00 cr. for working capital, Rs. 9.39 cr. for general corporate purposes. The offer documents were made available on public domain only on the previous eve of the RI Opening.
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. 3.38 cr. (3380300 equity shares) will stand enhanced to Rs. 43.27 cr. (43267840 shares). Based on the RI pricing, the company is looking for a market cap of Rs. 43.27 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has posted total revenue / net profit of Rs. 0.67 cr. / Rs 0.38 cr. (FY24), Rs. 3.19 cr. / Rs. 0.06 cr. (FY25), Rs. 22.58 cr. / Rs. 4.51 cr. (FY26).
For Q1 of FY27 ended on June 30, 2026, it has earned a net profit of Rs. 2.41 cr. on a total income of Rs. 7.30 cr. It posted erratic financial performance for the reported periods raising concern over its sustainability of boosted bottom lines in pre-RI periods.
DIVIDEND POLICY:
The company has not paid any dividends for the last three years. 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: 517320 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 29.34 on October 26, 2026, and opened on an ex-right basis at Rs. 12.07 on October 27, 2026. Since then, it has marked a high/low of Rs. 21.58 / Rs. 12.07. The scrip last closed at Rs. 21.58 as of November 12, 2026. For the last 52 weeks’ it has posted a high/low of Rs. 87.57 / Rs. 7.31. The counter is currently under ESM: Stage 1.
The promoters’ holding has been at 0.00%L for the last three quarters ended on September30, 2026. The counter it operated well above the RI price, with vested interest operations. In fact, its rigged post Ex-RI basis.
CONCLUSION:
This is the 2nd RI from MSIL since October 2025. The company posted erratic financial performances so far. It kept changing its businesses frequently. Over 10-fold jump in its post-RI equity may raise its servicing issue. There is no harm in skipping this at par “High Risk/Low Return” bet.
Review By Dilip Davda on August, 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 ).
