Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on December 15, 2025
- This is the 3rd RI from the company since December 2003.
• The last RI was in September 2015.
• It has posted erratic financial performances for the reported periods.
• Declining top line and rising net losses makes this a highly risky bet.
• There is no harm in skipping this very risky and dicey bet.
ABOUT COMPANY:
Deccan Gold Mines Ltd. (DGML) is engaged in the business of mining in particular and this being a highly capital intensive segment that requires significant investment for exploration, development, acquisition and maintenance of mining assets, procurement of equipment and machinery and creating relevant infrastructure along with environmental compliance and safety standards. The company keeps investing in emerging opportunities in the segment to stay tuned with the time. No wonder, the company is coming out with its 3rd RI since December 2003.
In addition, as a holding company, a significant portion of its income and cash flows is derived from dividends or other distributions received from Subsidiaries and Associates. The company has made provisions for ESOPs, but missing the data of its employees’ strength.
ISSUE DETAILS:
The company is coming out with its 3rd Rights Issue (RI) of 39337893 equity shares of Re. 1 each at a fixed price of Rs. 80 per share to mobilize Rs. 314.70 cr. The RI opens for subscription on December 17, 2025, and will close on December 26, 2025. The company is offering RI in the ratio of 150 for 601 to its eligible stakeholders as of the record date of December 09, 2025. The company is asking for full money on application for the number of shares applied. Post allotment, RI shares will be listed on BSE. The company is spending Rs. 1.51 cr. for this RI process, and from the net proceeds, it will utilize Rs. 203.00 cr. for repayment/prepayment of internal corporate deposit from Godawari Power and Ispat, Rs. 50.00 cr. investment in its subsidiary – Avelum Partner LLC, Kyrgyzstan, Rs. 35.00 cr. for inorganic growth, and Rs. 25.19 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. Sundae Capital Advisors Pvt. Ltd. is the advisor to the issue.
Post-RI, company’s current paid-up equity capital of Rs. 15.76 cr. will stand enhanced to Rs. 19.70 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 1575.61 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/ – (loss), of Rs. 3.59 cr. / Rs. – (64.38) cr. (FY24), Rs. 5.18 cr. / Rs. – (45.03) cr. (FY25). For Q1 of FY26 ended on June 30, 2025, it marked a net loss of Rs. – (27.77) cr. on a total revenue of Rs. 0.39 cr. Its NAV stood at Rs. NA as of June 30, 2025. Declining trends for top and continued losses with rising trends makes this a very risky bet. Its highly surprising that even during the period of scaling gold prices, the company failed to live up to the confidence.
DIVIDEND POLICY:
The company has no track records of any dividend payments as per BSE Website. 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: 512068 (FV Re. 1).
The scrip last closed on cum-right basis at Rs. 105.15 on December 08, 2025, and opened on an ex-right basis at Rs. 98.05 on December 09, 2025. Since then, it has marked a high/low of Rs. 99.30 / Rs. 89.80. The scrip last closed at Rs. 93.60 as of December 15, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 162.32 / Rs. 81.21.
The promoters’ holding declined to 24.16% as of September 30, 2025, against 24.68% as of March 31, 2025. The counter is trading above the RI price, with well managed volume by the vested interest quarters.
Conclusion / Investment Strategy
This is the 3rd RI from the company since December 2003. The last RI was in September 2015. It has posted erratic financial performances for the reported periods. Declining top line and rising net losses makes this a highly risky bet. There is no harm in skipping this very risky and dicey bet.
Review By Dilip Davda on December 15, 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/
