Courtesy: https://www.chittorgarh.com/
- The company has entered in AI based digital innovation solutions post change in name.
• It has posted erratic financial performance so far.
• The counter is trading at a discount to its RI price.
• The counter is inflated with thin volumes to tempt investors.
• Simply stay away from this pricey and highly risky bet.
ABOUT COMPANY:
Kairosoft AI Solutions Ltd. (KASL) erstwhile known as Pankaj Piyush Trade and Investment Ltd., is engaged in AI solutions to revolutionize digital content creation. It believes in innovation meets efficiency in the world of content creation. Its diverse suite of AI tools is designed to empower creators, developers, and businesses by streamlining the content creation process across multiple domains. At Kairosoft, it specializes in cutting-edge solutions that cover every aspect of content generation, from advanced text and code generation to pioneering visual and voice technologies. Whether you’re crafting compelling narratives, coding innovative software, designing striking visuals, or producing dynamic voice content, its AI tools are engineered to enhance creativity and productivity.
Its mission is to transform the way content is created, making it faster, smarter, and more accessible to everyone. With a focus on delivering high- quality, user-friendly tools, Kairosoft is committed to helping with unparalleled efficiency and precision. As AI Solutions Company it is at the forefront of leveraging artificial intelligence to revolutionize digital content creation, marketing strategies, and business model innovations. It specializes in providing advanced tools and services that empower businesses to enhance their visual and written content, optimize their marketing efforts, and develop innovative AI-based business models.
The company is entering highly competitive and fragmented segment. The offer document is silent on its employees’ strength. Though the company’s RI is opening on February 20, 2025, its offer documens were made available only on February 19, 2025 on designated exchange.
ISSUE DETAILS:
The company is coming out with Rights Issue (RI) of 800000 equity shares of Rs. 10 each at a fixed price of Rs. 250 per shares to mobilize Rs. 20.00 cr. The RI is opening for subscription on February 20, 2025, and will close on March 03, 2025. The company is offering RI in the ratio of 2 for 1 to its eligible stakeholders as of the record date of February 11, 2025. The company is asking for full money on application for the number of shares applied. Post allotment, shares will be listed on BSE. The company is spending Rs. 0.60 cr. for this RI process, and from the net proceeds, it will utilize Rs. 12.41 cr. for working capital, Rs. 3.34 cr. for capex on purchase of laptops, servers, printers etc., and Rs. 4.25 cr. for general corporate purposes. There is a mismatch of its total fund mobilization and funds utilization data on page no. 48
The RI is self- managed by the company itself, and Skyline Financial Services Pvt. Ltd. is the registrar to the issue.
Post-RI, company’s current paid-up equity capital of Rs. 0.40 cr. will stand enhanced to Rs. 1.20 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 30.00 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has posted total revenue/net profit/ – (loss) of Rs. 3.75 cr. / Rs- (0.05) cr. (FY23), Rs. 1.80 cr. / Rs. – (4.54) cr. (FY24). For H1 of FY25 ended on September 30, 2024, it posted a profit of Rs. 0.56 cr. on a total revenue of Rs. 0.90 cr. Thus the sudden boost in its top and bottom lines ahead of RI issue raises eyebrows and concern over its sustainability. Mega loss posted for FY24 may dent its immediate future prospects. The financial data is given in Rs. thousands, which appears to be an eyewash.
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. However, the offer document is silent on its dividend policy.
SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 506122 (FV Rs. 10)
The scrip last closed on cum-right basis at Rs. 246.05 on February 10, 2025, and opened on an ex-right basis at Rs. 233.75 on February 11, 2025. Since then, it has marked a high/low of Rs. 259.00 / Rs. 225.50. The scrip last closed at Rs. 246.35 as of February 19 2025. For the last 52 weeks’ it has posted a high/low of Rs. 347.15 / Rs. 92.15.
The promoters’ holding has been constant at 15% for the last three quarters ended with December 31, 2024. The counter is well maintained above the RI price by vested interest operators to tempt investors. The counter is jacked up with thin volumes.
Conclusion / Investment Strategy
KASL has entered in AI based digital innovation solutions post change in name. It has posted erratic financial performance so far. The counter is trading at a discount to its RI price. The counter is inflated with thin volumes to tempt investors. Despite market operations, the counter is marking discounted price on BSE. Simply stay away from this pricey and highly risky bet.
Review By Dilip Davda on February 20, 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. Readers must consult a qualified financial advisor before making any actual investment decisions, based on the information published here. My reviews do not cover GMP market and operators game plans. Any reader taking decisions based on any information published here does so entirely at their own risk. Investors should bear in mind that any investment in stock markets is subject to unpredictable market-related risks. The above information is based on RHP and other documents available as of date coupled with market perception. 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/
