Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on July 29, 2025
- The company is engaged in the development of real estate projects in MCGM.
• It posted minuscule operations for FY24 and FY25.
• Based on its recent financial data, the issue is fully priced.
• Though the RI is at a discount of around 20.75%, it’s a “high Risk/Low Return” pricey bet which one can avoid.
ABOUT COMPANY:
Zodiac Ventures Ltd. (ZVL) is in the business of developing real estate projects in the residential space It is a public company listed on the Bombay Stock Exchange (BSE: 503641). Established in 1981 in Mumbai, Zodiac Ventures Limited, its Promoters and its associates are engaged in the business of developing real estate projects in the residential space. The key focus area of the business has been the redevelopment of slum areas, cessed buildings, housing societies or old buildings belonging to the MCGM.
The company acquires and develops land that has locational advantages and are reasonably priced. In developing these properties, they place an emphasis on architecture, infrastructure, raw materials and facilities and seek to apply aesthetic design techniques to make the optimum use of available space. Surprisingly the company has shown its employee strength at 8 as of March 31, 2024 and missing latest data.
ISSUE DETAILS:
The company is coming out with Rights Issue (RI) of 45108000 equity shares of Re. 1 each at a fixed price of Rs. 6.30 per share to mobilize Rs. 28.42 cr. The RI opens for subscription on July 31, 2025, and will close on August 14, 2025. The company is offering RI in the ratio of 6 for 5 to its eligible stakeholders as of the record date of July 18, 2025. The company is asking full money on application. Post allotment, shares will be listed on BSE. The company is spending Rs. 0.50 cr. for this RI process, and from the net surplus, it will utilize Rs. 8.90 cr. for working capital, Rs. 12.50 cr. for repayment of secured/unsecured loan, Rs. 6.52 cr. for general corporate purposes.
The RI is self-managed by the company itself, and MUFG Intime India Pvt. Ltd. is the registrar to the issue.
Post-RI, company’s current paid up equity capital of Rs. 3.76 cr. will stand enhanced to Rs. 8.27 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 52.10 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has (on a consolidated basis) posted total income/net profit of Rs. 0.83 cr. / Rs. 0.39 cr. (FY24), and Rs. 1.64 cr. / Rs. 0.96 cr. (FY25). Thus, it has posted minuscule financial performances for the last two years and post RI, its equity is rising more than double.
Its borrowings to the tune of Rs. 27.47 cr. as of March 31, 2025 raises alarm.
DIVIDEND POLICY:
The company has declared Rs.0.25 dividends in September 2024. It will adopt a prudent dividend policy post listings of RI shares 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: 503641 (FV Re. 1).
The scrip last closed on cum-right basis at Rs. 12.91 on July 17, 2025, and opened on an ex-right basis at Rs. 9.30 on July 18, 2025. Since then, it has marked a high/low of Rs. 10.19 / Rs. 7.65. The scrip last closed at Rs. 7.95 as of July 29, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 12.73 / Rs. 6.49.
The promoters’ holding has been constant at 64.62% for the last three quarters ended with June 30, 2025. The counter is well managed above the RI price to lure investors.
Conclusion / Investment Strategy
ZVL is engaged in the development of real estate projects in MCGM. It posted minuscule operations for FY24 and FY25. Based on its recent financial data, the issue is fully priced. Though the RI is at a discount of around 20.75%, post-RI, its paid up equity stands more than doubled. it’s a “high Risk/Low Return” pricey bet which one can avoid.
Review By Dilip Davda on July 29, 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/
