Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on July 16, 2025
- The company is currently operating as an NBFC and engaged in finance related activities and investment in securities.
• Its promoter’s holding is down to 14.50% from 22.86%.
• Though the RI is at a discount of around 46%, it’s a “High Risk/Low Return” bet.
• The counter is well operated by vested interest and kept much above RI price.
• The company is operating in a highly competitive and fragmented segment.
• Well-informed/cash surplus investors may park moderate funds for long term.
ABOUT COMPANY:
JMJ Fintech Ltd. (JFL) erstwhile known as Meenakshi Enterprises Ltd.- at the time of Incorporation the Company was in the business as traders, exporters, agents representatives, dealers, producers, stockists, importers or distributors of Industrial, commercial, agricultural, scientific, household, domestic, automobile, farm and forest products, goods plants, machineries equipments, apparatus, gadgets, appliances, accessories, spare parts or other merchandise including tea, coffee and to acquire by purchase, lease, exchange, hire or otherwise develop or operate land, buildings and investment of shares and securities.
The Company at the Annual General Meeting held on 09th September, 1997, amended its Object clause of MOA and inserted the objects of business of letting on hire or sale all kinds of commercial and machinery, equipment and tools and to enter in the business of Tour and Travel Agents. The Company post this applied to the Reserve Bank of India for the issuance of Certificate of Non-Banking Financial Company and the Company was issued by the Reserve Bank of India on 09th March, 1998 under the Registration Certificate No. B-07-00141.
The Company since then has been in to the business of Non-Banking Finance Company and trading in Shares and Securities. Apart from NBFC activities, the Company is also investing in Capital Market as and when the Company seems to gaining from these activities and find opportunities to earn profit. As of December 31, 2024, it had 131 employees on its payroll.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 25600000 equity shares of Rs. 10 each at a fixed price of Rs. 10.50 per share to mobilize Rs. 26.88 cr. The RI is opening for subscription on July 18, 2025, and will close on August 14, 2025. The company is offering RI in the ratio of 2 for 1 to its eligible stakeholders as of the record date of July 11, 2025. The company is asking for Rs. 3.15 per share on application for number of shares applied, and the balance by one or more calls as determined by it from time to time. Post allotment, shares will be listed on BSE. The company is spending Rs. 1.16 cr. for this RI process, and from the net proceeds, it will utilize Rs. Rs. 19.00 cr. for augmenting its capital base, and Rs. 6.72 cr. for general corporate purposes.
The RI is self-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. 12.80 cr. will stand enhanced to Rs. 38.40 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 40.32 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, it has posted a total revenue/ net profit, of Rs. Rs. 7.47 cr. / Rs. 2.14 cr. (FY24), Rs. 17.15 cr. / Rs. 5.17 cr. (FY25). Its NAV stood at Rs. 18.46 per share as of March 31, 2025.
DIVIDEND POLICY:
The offer document is silent on its dividend policy. The company has not declared 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.
SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 538834 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 37.85 on July 10, 2025, and opened on an ex-right basis at Rs. 19.50 on July 11, 2025. Since then, it has marked a high/low of Rs. 20.85 / Rs. 18.90. The scrip last closed at Rs. 19.55 as of July 16, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 21.24 / Rs. 10.48. The counter is currently under ESM: Stage 1.
The promoters’ holding has declined to around 14.50% for the last two quarters ended with March 31, 2025, against 22.86% as of period ended December 13, 2024. The counter is currently trading well above the RI price to tempt investors. It is well operated by vested interest quarters.
Conclusion / Investment Strategy
JFL is currently operating as an NBFC and engaged in finance related activities and investment in securities. Its promoter’s holding is down to 14.50% from 22.86%. Though the RI is at a discount of around 46%, it’s a “High Risk/Low Return” bet. The counter is well operated by vested interest and kept much above RI price. The company is operating in a highly competitive and fragmented segment. Well-informed/cash surplus investors may park moderate funds for long term.
Review By Dilip Davda on July 16, 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/
