Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on June 09, 2025
- This is the 2nd RI from the company since March 2024.
• It marked negative earnings till FY23 and has accumulated losses
• Minuscule earnings against two and half time higher post-RI equity may have its servicing issues going forward.
• The company is operating in a highly competitive and fragmented segment.
• There is no harm in skipping this “High Risk/No Return” bet.
PREFACE:
The company is coming out with its RI to mobilize Rs. 48.96 cr., RI is opening for subscription on June 10, 2025, and its offer document is dated May 22, 2025, with a record date was of May 28, 2025, but the offer document was not uploaded on the designated exchange till this morning of June 09, 2025. Thus, delayed submission of offer documents for RI is unabatedly going on. It has just 3 employees on its payroll as of the filing date of this offer document.
ABOUT COMPANY:
Markobenz Ventures Ltd. (MVL) was originally incorporated as Maharashtra Fur Fabrics Ltd. and changed its name to PodarKnitex Ltd., then to Evergreen Textiles Ltd., and then to its current name.
It was originally engaged in manufacturing, bleaching, dyeing, printing, knitting, in High Pile Fur Fabrics, cloth and other fabrics made from acrylic, polyester, cotton silk, artificial silk, wool and other suitable materials. The operations of the activities were closed in the year (???). Subsequently it was taken over by new management in June, 2023. The company has restarted operations in the business of trading of agriculture commodities. It operates in B2B segment. It is operating in a highly competitive and fragmented segment. As of the date of this offer document, it had just 3 employees on its payroll.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 48000000 equity shares of Rs. 10 each at a fixed price of Rs. 10.20 per share to mobilize Rs. 48.96 cr. The RI is opening for subscription on June 10, 2025, and will close on June 25, 2025. The company is offering RI in the ratio of 5 for 2 to its eligible stakeholders as of the record date of May 28, 2025. 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. 0.80 cr. for this RI process, and from the net proceeds, it will utilize Rs. 36.20 cr. for working capital, and Rs. 11.96 cr. for general corporate purposes.
The RI is self-managed by the company itself, and Purva Sharegistry (I) Pvt. Ltd. is the registrar to the issue.
Post RI, company’s current paid-up equity capital of Rs. 19.20 cr. will stand enhanced to Rs. 67.20 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 68.54 cr. There is garble in the Capital Structure data on page no. 33 of the offer document.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, it has posted a total revenue/ net profit/ – (loss) of Rs. NIL cr. / Rs. – (13.55) cr. (FY21), Rs. NIL / Rs. – (11.27) cr. (FY22), Rs. NIL cr. / Rs. – (16.90) cr. (FY23), Rs. 24.30 cr. / Rs. 2.19 cr. (FY24). For 9M of FY25 ended on December 31, 2024, it earned a net profit of Rs. 1.63 cr. on a total income of Rs. 45.51 cr. The accounting info given on offer document page nos. 95, 133, 150 and 152 is confusing as it has changed the units. Thus, its financial data shows minuscule operations and carried forward losses of earlier years.
DIVIDEND POLICY:
The company has not declared any dividends for the reported periods of the offer document. It will adopt a prudent dividend policy post listings of RI shares based on its financial performance and future prospects.
SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 514060 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 9.50 on May 27, 2025, and opened on an ex-right basis at Rs. 10.35 on May 28, 2025. Since then, it has marked a high/low of Rs. 10.74 / Rs. 9.29. The scrip last closed at Rs. 10.72 as of June 06, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 27.12 / Rs. 5.81. The counter is currently under ESM: Stage 1.
The promoters’ holding has been constant around 18.50% for the last three quarters ended with March 31, 2025. The counter is well managed above the RI price to lure investors.
Conclusion / Investment Strategy
This is the 2nd RI from MVL since March 2024. It marked negative earnings till FY23 and has accumulated losses. Minuscule earnings against two and half time higher post-RI equity may have its servicing issues going forward. The company is operating in a highly competitive and fragmented segment. There is no harm in skipping this “High Risk/No Return” bet.
Review By Dilip Davda on June 9, 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/
