Why does the company again considering rights issue ?! The promoter sold stocks to infuse cash at 0% interest but thats not enough ?
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Industrial Plot Allotment
Stallion India Fluorochemicals received an allotment letter (Nov 4, 2025) from RIICO for an industrial plot of approximately *28,650 square meters* in Ukhaliya, Rajasthan. This land acquisition supports the company’s long-term *capacity expansion* and future operational requirements for its R-32 Manufacturing Plant. #BusinessUpdate
Strategic Tech Tie-up Guidance
SIFL has signed a strategic technology tie-up (MoU) with Portugal-based SYS ADVANCE for Helium Recovery & Liquefaction Systems, critical for space and defense applications. SIFL is actively working with ISRO for long-term support in this area. Management has issued a strong *3-year revenue CAGR guidance of 30-35%* based on this expansion into advanced gas technologies. #StrategicPivot #StrongGuidance
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Any views on the the quarterly results for Stallion?
Key Takeaways from Q3 FY26 Concall held on 3rd Feb (AI generated summary)
1. Financial Performance (Q3 & 9M FY26)
Q3 FY26: Total revenue reached ₹104.87 crores (23.2% YoY growth). EBITDA stood at ₹13.56 crores, and PAT was reported at ₹11-12 crores [01:59].
9M FY26: Total revenue was ₹321.18 crores (41.7% YoY growth). EBITDA grew to ₹43.69 crores (up 48.6%), and PAT surged by 72.8% to ₹32.9 crores [02:34].
EPS: Earnings Per Share for 9M FY26 stood at 4.15 compared to 3.1 in the previous year [03:04].
2. Strategic Expansions & New Facilities
R32 Manufacturing Plant (Bhilwara, Rajasthan): The company received environmental clearance for a 10,000-ton per annum facility. This project is a critical step towards backward integration and is expected to be commissioned by August 2026 [03:30].
Mambattu & Khalapur Facilities:
Khalapur (Helium): Delayed due to a system upgrade from 200 bar to 300 bar pressure standards. Startup is expected in March 2026 [08:10].
Mambattu (Andhra Pradesh): The facility’s scope was significantly expanded (doubling tank capacity, adding semiconductor/helium facilities), pushing operations to start by March/April 2026 [09:13].
Helium Business: The company entered a tie-up with CIS Advance (Portugal) for technology and a strategic partnership with Sharia Oxygen (Dubai) for sourcing liquid helium. They target ₹200 crores revenue from helium and specialty gases within 5 years [04:08], [45:36].
3. Promoter Stake Sale & Fundraising
Context: The MD sold 2% of his stake recently. He clarified this was necessary because a planned preferential issue became unviable due to extreme market volatility and a sharp rise in stock price (crossing ₹250).
Usage of Funds: The proceeds were injected into the company as an interest-free loan to kickstart the time-bound R32 project immediately.
Rights Issue: These funds will be converted back into equity through an upcoming Rights Issue, which the MD intends to subscribe to fully [06:40].
4. Future Guidance & Outlook
FY26 Targets: The company remains confident in achieving its revenue guidance of ₹430 crores and PAT guidance of ₹40 crores for the full year [05:15].
Growth Projections: They project a 30-35% CAGR over the next 3 years.
R32 Revenue Potential: The new R32 plant is expected to generate ~₹275 crores in the second half of FY27 (6 months of production) and ~₹550 crores in FY28 [39:37].
Margins: New products (R32, Helium) are expected to have PAT margins between 16% to 24%, aiming to improve the overall company PAT margin up from ~10% by 3-4% [32:31] [5:30]
5. Operational Insights
Capacity Utilization: The current revenue of ~₹430 crores is generated purely from existing trading/blending operations, excluding the three new upcoming facilities (Bhilwara, Mambattu, Khalapur).
Market Position: Management emphasized that despite currently being a non-manufacturing entity, they have retained customers against global giants. Becoming a manufacturer (backward integration) is expected to further strengthen their pricing power and retention [24:06].
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Right Issue details announced
Issue Size - 364/- CR
Price Fixed - 99/- per share
Entitlement Ratio - 19 shares for every 41 shares held by existing shareholders
Record Date - 11 Feb
can someone explain me is it favourable for existing shareholders and if yes, then why?
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Some major shady actions by promotor, still has potential to go down further. Equity dilution by 30%.
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Promoter sold stocks near 3% of it’s peak around 280 rupees worth 45 crores.
Now he will participate in rights issue and buy same at 99 rupees. Intelligent promoter foolish retail investors
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Let’s calculate it.
Old shares Capital: 7.93 Cr
Promoter Sale at Price: ₹280 (Hypothetical)
Value of old shares:
7.93×280=₹2220Cr
New shares issued:
3.67 Cr at ₹99 (Promoter and existing shareholders)
Money raised:
≈ ₹364 Cr
Total value after right issue:
2220+364=₹2584Cr (Rs 364Cr came in to company)
Total shares after issue:
7.93+3.67
11.61Cr
New theoretical price:
2584/11.61≈₹222.257
So the fair price after rights should move toward ₹220, not ₹280.
which means dilution brings price to Rs 222
If i am correct, this money does not go in to the pocket but in the company. So he is not benefited immediately. One has to wait it to perform well and show earning growth then only it will appreciate in value and one can sell at higher than buying price which effectivelly Rs 222.
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can you explain this from the very start because i am not been able to understand this transaction.
364 crores won’t come immediately right. Only 25% will come now I.e. 91 crores and rest 273 will come in 18 months. I am not sure whether equity dilution take effect immediately or after 18 months when rights fully converted.
According to this document shared by company;
The rights shares are fully paid
The ₹364 crore was received immediately
The dilution happened immediately, not gradually.
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Highlighted the foolishness of the promoter earlier but he is not foolish after all…he is a scammer.
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Anti‑dumping probe on PTFE imports from China and Russia
R-32 Prices Rising
Summer Demand Factor
This is not true. The promoter sold and handed over the money to company as interest free loan. The loan is now adjusted against rights issue. So promoter has not taken one rupee from sale. Why promoter sold- to finance the capex in Bhilwara urgently.
Disc : Tracking. Like he company
Independent director has resigned : Not a good sign.
Disclosure : Not invested but tracking for knowledge
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Why not a good sign?. Did you saw the reason. If we have negative aspect towards a company then we can’t invest in it. This has nothing to do with company thesis. I feel you can delete the post and I will do mine as it won’t be added service to this thread.
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A company sells own stocks at higher levels, loans to own company, come up with a large equity dilution, bring price down with result manipulation and convert loaned money at lower rate to capture more stake. These are all critical aspects of a very poor corporate governance. Independent director resignation confirms that things are not good.
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Bro..the reason aint that deep !
Almost all the reasons I have seen at board/executive levels are similar..personal commit,profes commit,no objection,thankful and all.As they are all mature and professionals, i think theres not much to read into reason.
D- No investment.