Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on October 21, 2025
- The company is in the business of trading in steel and infrastructure raw materials.
• It is operating in a highly competitive and fragmented segment.
• It marked minuscule financial performances for the reported periods.
• 29 fold jump in its post-RI equity may pose its servicing issue.
• There is no harm in skipping this at par “High Risk/Low Return” dicey bet.
ABOUT COMPANY:
Magnus Steel & Infra Ltd. (MSIL) is establishing a trading enterprise specializing in the supply of essential steel and infrastructure raw materials, including TMT Reinforcement Steel, Industrial Steel, MS (Mild Steel) Products, AAC (Autoclaved Aerated Concrete) Blocks, Readymix Concrete, and Cement. These materials are fundamental to the construction and infrastructure sectors, which are experiencing significant growth in India. As of March 31, 2025, it had just 9 employees on its payroll. Its total borrowing of Rs. 1.76 cr. as of March 321, 2025, raise alarm.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 49014350 equity shares of Re. 10 each at par value to mobilize Rs. 49.01 cr. The RI opens for subscription on October 23, 2025, and will close on November 14, 2025. The company is offering RI in the ratio of 29 for 2 to its eligible stakeholders as of the record date of October 10, 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. 0.75 cr. for this RI process, and from the net proceeds, it will utilize Rs. 36.53 cr. for working capital, and Rs. 11.73 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. 3.38 cr. will stand enhanced to Rs. 52.39 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 52.39 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has posted total income / net profit/ – (loss), of Rs. 0.67 cr. / Rs. – (0.38) cr. (FY24), and Rs. 3.19 cr. / Rs. 0.06 cr. (FY25). It has posted a minuscule financial performance for the reported periods. 29 fold jump in its paid-up equity capital post-RI may face its servicing issue. As of March 31, 2025, it had a carried forward loss of Rs. 1.45 cr.
DIVIDEND POLICY:
The company has not paid any dividends for the reported periods. It will adopt a prudent dividend policy, based on its financial performance and future prospects. However, offer document is silent on its dividend policy.
SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 517320 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 19.74 on October 09, 2025, and opened on an ex-right basis at Rs. 11.15 on October 10, 2025. Since then, it has marked a high/low of Rs. 13.66 / Rs. 11.15. The scrip last closed at Rs. 13.66 as of October 20, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 13.66 / Rs. 3.85. The counter is currently under ESM: Stage 2.
The promoters’ holding has been at 46.13% as of September 30, 2025, against 47.60% for previous two quarters ended June 30, 2025. The counter is well maintained above the par value to tempt investors.
Conclusion / Investment Strategy
The company is in the business of trading in steel and infrastructure raw materials. It is operating in a highly competitive and fragmented segment. It marked minuscule financial performances for the reported periods. 29 fold jump in its post-RI equity may pose its servicing issue. There is no harm in skipping this at par “High Risk/Low Return” dicey bet.
Review By Dilip Davda on October 21, 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/
