Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on July 4, 2025
- The company is technology driven advance systems developments.
• The company posted losses for the reported periods.
• There is a garble in the quantum of RI and ratio. Needs clarification from the company.
• Considering losses, the RI is highly priced and is a risky bet.
• Simply stay away from this loss making and shaky company.
PREFACE:
The company is coming out with its Rights Issue (RI) in the ratio of 4 for 1 to its eligible stakeholders as of record date of June 28, 2025. Based on this ratio, the quantum of equity shares should have been 68692456 if its current paid-up equity capital of Rs. 17173114 is correct. But the offer document has mentioned the RI quantity as 4692456 shares. This is really shocking and unbelievable. How the designated exchange has approved the offer documents with such anomaly??? Its Capital Structure table on page no. 47 (also refer page 21) of offer document shows post-RI paid up equity capital of 21865570 shares and current capital of 17173114 shares. RI quantity of 4692456 shares. Based on ratio of RI the RI quantity should have been 68692456 shares. But based on the RI quantity of 4692456 shares, the ratio should have been 0.23 share for 1 share. This needs immediate clarification and correction to its offer document. Surprisingly the BSE notice for Rights Entitlement has not quantified any numbers of shares, entitlement and the RI size.
ABOUT COMPANY:
Bodhtree Consulting Ltd. (BCL) is a technology-driven company with significant focus and investment in its in-house research and development capabilities. BCL’s future success, amongst other factors, will depend upon its ability to continue to attract and retain qualified personnel, particularly for Research & Development Facility, know-how and skills that are capable of helping it develop technologically advanced systems and support key customers and products. The specialized skills BCL requires in its industry are difficult and time-consuming to acquire and, as a result, are in short supply. It may require a long period of time to hire and train replacement personnel when it loses skilled employees. BCL’s inability to hire, train and retain a sufficient number of qualified employees could delay its ability to bring new products or services to the market and impair the success of operations and revenue could decline.
This could have an adverse effect on its business and the results of operations. The company will also have to train existing employees to adhere to internal controls and risk management procedures. Failure to train and motivate its employees properly may result in an increase in employee attrition rates, require additional hiring, erode the quality of customer service, divert management resources, increase exposure to high-risk credit and impose significant costs on the company which may adversely impact profitability and results of operations. The industry is characterized by ongoing innovations and developments in technology. Competitors could develop new or superior services, subsystems and systems to increase their share of the markets, leading to the loss of projects by the Company.
Its future success in addressing the needs of customers will depend in part on its ability to continue to make timely and cost-effective product innovations and developments. In the event that it is unable to adequately fund research and development efforts, which may lead to its technologies and machineries become obsolete or are unable to retain/hire skilled talent for initiatives, or are unable to deliver superior or equal quality products in lines with its competitors or in a timely manner, the company may be unable to achieve growth plans and revenues and results from operations may be adversely affected. The company has two cases of tax proceedings amounting to Rs. 20.47 cr. which raise a big alarm. The offer document is silent on its employees’ strength.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 4692456 equity shares of Rs. 10 each at a fixed price of Rs. 30 per share to mobilize Rs. 14.08 cr. The RI is opening for subscription on July 07, 2025, and will close on July 24, 2025. The company is offering RI in the ratio of 4 for 1 to its eligible stakeholders as of the record date of June 28, 2025.
The company is asking for full money on application for number of shares applied. Post allotment, shares will be listed on BSE. The company is spending Rs. 0.70 cr. for this RI process, and from the net proceeds, it will utilize Rs. 5.40 cr. for capex on product development and product enhancement., and Rs. 5.30 cr. working capital, and Rs. 2.68 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. 17.17 cr. will stand enhanced to Rs. 21.87 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 65.60 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. 16.56 cr. / Rs. – (2.46) cr. (FY24), Rs. 6.07 cr. / Rs. – (1.27) cr. (FY25). Its NAV stood at Rs. 7.88 per share as of March 31, 2025.
DIVIDEND POLICY:
The offer document is silent on its dividend policy. It has not paid any dividends for the reported periods of the offer document. It will adopt a prudent dividend policy post listings of RI shares based on its financial performance and future prospects.
SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 539122 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 53.50 on June 23, 2025, and opened on an ex-right basis at Rs. 36.45 on June 30, 2025. Since then, it has marked a high/low of Rs. 42.18 / Rs. 36.35. The scrip last closed at Rs. 42.18 as of July 03, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 44.28 / Rs. 7.39. The counter is currently under IRP: Stage 0.
The promoters’ holding has been constant around 93.17% for the last three quarters ended with March 31, 2025. The counter is currently trading above the RI price when the company is incurring losses. The counter is highly manipulated to tempt investors.
Conclusion / Investment Strategy
BCL is technology driven advance systems developments. The company posted losses for the reported periods. There is a garble in the quantum of RI and ratio. Needs clarification from the company. Considering losses, the RI is highly priced and is a risky bet. Simply stay away from this loss making and shaky company.
Review By Dilip Davda on July 4, 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/
