– By Dilip Davda
- This is the 2nd RI from the company since July 2023.
- It posted spectacular financial performance for the reported periods.
- Based on its recent market price trends, the issue appears aggressively priced.
- Only well-informed investors may park moderate funds for medium term.
ABOUT COMPANY:
Shraddha Prime Projects Ltd., (SPPL) is engaged in the development of real estate projects on identified land parcels. This is primarily achieved by entering into joint development agreements (“JDAs”) and forming strategic partnerships with landowners, co-developers or other key stakeholders, enabling collaborative execution of end-to-end project activities such as site planning, regulatory approvals, construction, sales and handover of projects.
The Company intends to strengthen its project execution capabilities with an emphasis on undertaking a greater number of projects of higher scale and complexity. Company’s experience, enable it to grow in size and expand business operations. However, it is operating in a highly competitive and fragmented segment. The offer document is silent on its employees’ strength data.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 6060150 equity shares of Rs. 10 each at a fixed price of Rs. 160 per share to mobilize Rs. 96.96 cr. The RI opened for subscription on November 12, 2026, and will close on November 20, 2026. The company is offering RI in the ratio of 3 for 20 to its eligible stakeholders as of the record date of October 15, 2026. The company is asking for Rs. 144 per share on application for number of shares applied. The balance amount of Rs. 16 to be paid by one or more subsequent calls as decided by the company. Post allotment, RI shares will be listed on BSE. The company is spending Rs. 0.46 cr. for this RI process, from the net proceeds, Rs. 90.00 cr. for working capital, and Rs. 6.50 cr. for general corporate purposes.
The RI is solely lead managed by the company itself, and RCMC Share Registry Pvt. Ltd. is the registrar to the issue. GYR Capital Advisors Pvt. Ltd. Is the advisor to the issue.
Post-RI, company’s current paid-up equity capital of Rs. 40.40 cr. (40401000 equity shares) will stand enhanced to Rs. 46.46 cr. (46461150 shares). Based on the RI pricing, the company is looking for a market cap of Rs. 743.38 cr. The Letter of Offer were made available only on the pre-eve of the RI opening.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has (on a consolidated basis) posted total revenue / net profit of Rs. 155.58 cr. / Rs 24.91 cr. (FY25), Rs. 521.90 cr. / Rs. 54.11 cr. (FY26). For H1 of FY27 ended on September 30, 2026, it has earned a net profit of Rs. 44.31 cr. on a total income of Rs. 272.77 cr. Its NAV stood at Rs. 37.46 as of June 30, 2026. The company marked growth in its top and bottom lines for the reported periods. Its higher PAT margins raise eyebrows and concern over its sustainability going forward.
DIVIDEND POLICY:
The company has paid dividend of 2% for FY24 and FY25. It will adopt a prudent dividend policy, based on its financial performance and future prospects. The offer document is silent on its dividend policy.
SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 531771 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 168.60 on October 14, 2026, and opened on an ex-right basis at Rs. 169.20 on October 15, 2026. Since then, it has marked a high/low of Rs. 169.20 / Rs. 138.60. The scrip last closed at Rs. 163.65 as of November 12, 2026. For the last 52 weeks’ it has posted a high/low of Rs. 257.09 / Rs. 138.60.
The promoters’ holding has been at 74.78%L for the last three quarters ended on September30, 2026. The counter is trading well above the RI price, with vested interest operations.
CONCLUSION:
This is the 2nd RI from SPPL since July 2023. The company marked progress in its top and bottom lines for the reported periods. It posted spectacular financial performance for the reported periods. Based on its recent market price trends, the issue appears aggressively priced. Only well-informed investors may park moderate funds for medium term.
Review By Dilip Davda on August, 2026
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 ).
