(Comprehensive Investor Guide)
Key Takeaways
✅ Record Date: July 28, 2025
✅ Issue Price: ₹1.10 per share (99%+ discount to market price)
✅ Ratio: 1 new share for every 3 held (1:3)
✅ Fundraising Goal: ₹46.46 Crores
⚠️ Critical Risk: Volatile financials & negative analyst review
Company Snapshot: Who is Indian Infotech & Software?
A Mumbai-based IT services firm listed on the BSE (Code: BSE:509051). The company specializes in:
- Software development & IT consulting
- Legacy system maintenance
- Limited public client portfolio
Red Flags Noted:
- Basic website (
indianinfotechandsoftwareltd.in) - Yahoo email ID (
indianinfotechsoftware@yahoo.com) - Minimal investor communication
Rights Issue 2025: Critical Details
| Parameter | Detail |
|---|---|
| Issue Open | August 6–13, 2025 |
| Record Date | July 28, 2025 |
| Price | ₹1.10 per share |
| Ratio | 1:3 (1 share for every 3 owned) |
| Total Shares Offered | 42.23 Crore shares |
| Funds Raised | ₹46.46 Crores |
| Listing | BSE |
Why Such a Low Price?
- Current Market Price (July 2025): ₹1.11
- Effective Discount: 99.01% (virtually par value)
- Signals desperation for capital or impending dilution.
Financial Health: Troubling Inconsistencies
Revenue & Profit Collapse (₹ in Crores):
| Year | Revenue | Profit (PAT) | Trend |
|---|---|---|---|
| 2023 | 47.06 | 0.61 | -15% YoY |
| 2024 | 21.12 | 1.72 | ⬇️ 55% |
| 2025 | 39.43 | 6.92 | ⬆️ 227% |
Analysis:
- 2024 Revenue Crash: Revenue halved without clear explanation.
- 2025 PAT Spike: Profit surge amid revenue stagnation suggests asset sales or accounting adjustments.
- Net Worth Stagnation: ~₹230 Crores (2021–2023) – Zero growth in 4 years.
Use of Funds: Vague & High-Risk
The company states proceeds will cover:
- Working Capital Requirements (Primary use)
- General Corporate Purposes
Why This Raises Concerns:
- No specifics on clients, projects, or growth strategy.
- Previous 2024 rights issue (₹41.83 Cr) also funded “working capital” – yet revenue fell 55% next year.
- Analyst Dilip Davda’s 2024 verdict: “Avoid” – citing poor transparency.
Step-by-Step Application Guide
For Existing Shareholders (as of July 28, 2025):
1️⃣ ASBA via Net Banking:
- Log in → Rights Issue section → Select “Indian Infotech & Software” → Enter RE quantity → Block funds.
2️⃣ R-WAP Platform (Registrar): - Visit Purva Sharegistry → Enter PAN/Demat details → Apply online.
For New Investors:
- Buy Rights Entitlements (REs) during renunciation (August 8–13, 2025) via your stockbroker.
Key Dates:
- Last Date to Buy Shares: July 25, 2025
- Rights Credit to Demat: July 28, 2025
- Renunciation Window: August 8–13, 2025
- Allotment & Listing: By August 19, 2025
4 Major Risks You Can’t Ignore
- Financial Instability: Wild swings in revenue/profit suggest operational crisis.
- Extreme Dilution: 42.23 Cr new shares → 33% equity dilution → EPS crash likely.
- Poor Governance:
- No investor presentations/quarterly calls.
- Basic website lacking annual reports.
- Liquidity Trap: Avg. daily traded value: ₹8.5 Lakhs – exiting positions could crash prices.
Should You Invest? The Honest Verdict
Avoid If:
- You seek stable returns or dividend income.
- Transparency is non-negotiable.
- Previous rights issues (like 2024’s) burned you.
Consider Only If:
- You hold shares pre-record date and want to average down cost.
- Speculating on a buyout (despite no evidence).
- Risk appetite is “high-risk lottery ticket.”
💡 Analyst Insight: “Raising capital at ₹1.10 when shares trade at ₹1.11 implies zero market confidence. Proceed like you’d bet on a penny stock – only with money you can lose.” – Market expert analysis.
FAQs: Quick Answers
Q: What’s the record date?
A: July 28, 2025 – Hold shares in demat by this date.
Q: Can I apply if I don’t hold shares?
A: Yes! Buy REs during renunciation (Aug 8–13, 2025).
Q: Where to check allotment?
A: Registrar’s portal: Purva Sharegistry
Q: Why such a low issue price (₹1.10)?
A: Likely a last-resort effort to attract capital amid weak investor interest.
9. Contact & Resources
- Registrar: Purva Sharegistry India Pvt Ltd
📞 +91-022-23018261 | ✉️support@purvashare.com - Company:
📍 110, 1st Floor, Golden Chamber, Andheri West, Mumbai
📞 022-49601435 | ✉️indianinfotechsoftware@yahoo.com
Critical Document:
10. Final Word: Tread Carefully
Indian Infotech’s rights issue offers extreme risk-reward asymmetry:
- Upside: Minimal (listing gains unlikely at near-par price).
- Downside: Total capital wipeout if business collapses.
For smart investors:
- Existing holders → Renounce REs to exit partially.
- New entrants → Avoid until audited growth evidence emerges.
Remember: When a company raises capital at 99% below market price, it screams distress – not opportunity. Verify or avoid.
