Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on August 5, 2025
- The company is RBI registered NBFC engaged in financial services, however its name with Infotech & Software is misleading.
• This is the 2nd RI from the company since January 2024.
• It marked minuscule financial performance and hike in its post-RI capital base indicates issue for its servicing going forward.
• The issue is greedily priced based on its recent financial data.
• There is no harm in skipping this “High Risk/Low Return” pricey bet.
ABOUT COMPANY:
Indian Infotech & Software Ltd. (IISL) is a non-banking finance company NBFC-Non-Systematically Important Non- Deposit Taking Company categorized as Investment and Credit Company i.e., ICC), incorporated in the year 1982 registered with the Reserve Bank of India bearing registration number B-13.0022 to carry on NBFC business activities under Section 45IA of the Reserve Bank of India Act, 1934. It is a non-systemically important non-deposit taking company with over three decades of lending experience in India.
The company is primarily engaged in Investment and lending activity, to look after the needs and aspirations of customers and investment in good company’s securities. IISL’s portfolio includes lending, finance to small and medium companies, investment in various securities of companies. It has a long history of serving all types of markets with high growth potential and have maintained a track record of financial performance and operational efficiency through consistently high rates of customer acquisition and retention and low-cost expansion into underpenetrated areas.
Business Finance to small and medium business owners including SME and MSME, its lending business to small business owners including SME and MSME lending business, primarily involves it extending secured loans and unsecured loans for business purposes to small and medium size enterprises, including Companies, LLP, and businessmen, traders, manufacturers and self-employed professionals and the company is also in the business of investment in the Quoted and Unquoted Securities of companies. However, the current name of the company totally misleads with a word Infotech. The offer document is silent on its human strength data.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 422347590 equity shares of Re. 1 each at a fixed price of Rs. 1.10 per share to mobilize Rs. 46.46 cr. The RI is opening for subscription on August 06, 2025, and will close on August 13, 2025. The company is offering RI in the ratio of 1 for 3 to its eligible stakeholders as of the record date of July 28, 2025. This is the 2nd RI from the company since January 2024.
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. 1.50 cr. for this RI process, and from the net proceeds, it will utilize Rs. 34.50 cr. for augmenting its capital base and funding requirements, Rs. 10.46 cr. for general corporate purposes.
The RI is solely lead managed by the company itself, and Purva Sharegistry (India) Pvt. Ltd. is the registrar to the issue.
Post RI, company’s current paid-up equity capital of Rs. 126.70 cr. will stand enhanced to Rs. 168.94 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 185.83 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, it has posted a total income/ net profit/- (loss), of Rs. 21.12 cr. / Rs. 1.71 cr. (FY24), Rs. 39.43 cr. / Rs. – (6.92) cr. (FY25). Though it marked higher top line for FY25, its bottom line turned red that raises major concern. Its NAV is down to 2.63 as of March 31, 2025 against 2.70 as of March 31, 2024. There is a big mismatch in its financial data on page no. 16 and page no. 51 of the offer document. Clarification to this garble is needed from the management.
DIVIDEND POLICY:
The offer document is silent on its dividend policy. The company has not declared any dividends for the last five fiscals. It will adopt a prudent dividend policy, based on its financial performance and future prospects.
SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 509051 (FV Re. 1).
The scrip last closed on cum-right basis at Rs. 1.24 on July 25, 2025, and opened on an ex-right basis at Rs. 1.21 on July 28, 2025. Since then, it has marked a high/low of Rs. 1.21 / Rs. 1.07. The scrip last closed at Rs. 1.17 as of August 05, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 1.55 / Rs. 0.71.
The promoters’ holding has been constant at 3.20% for the last three quarters ended with June 30, 2025. The counter is currently trading above its RI price to tempt investors.
Conclusion / Investment Strategy
IISL is RBI registered NBFC engaged in financial services, however its name with Infotech & Software is misleading. This is the 2nd RI from the company since January 2024. It marked minuscule financial performance and hike in its post-RI capital base indicates issue for its servicing going forward. The issue is greedily priced based on its recent financial data. There is no harm in skipping this “High Risk/Low Return” pricey bet.
Review By Dilip Davda on August 5, 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/
