The SME IPO of Divyadhan Recycling Industries will open for subscription today and will close on Monday, September 30. The company aims to raise nearly Rs 24 crore through the SME IPO and list the shares on the NSE SME platform.
Here are 10 key things investors need to know about the public offer before subscribing to the issue.
1) Divyadhan Recycling Industries IPO size
The IPO is entirely a fresh equity issue of 37.76 lakh shares and through the issue, the company plans to raise Rs 24 crore.
2) Divyadhan Recycling Industries IPO price band
The company is offering its shares at Rs 60-64 apiece, and investors can bid for 2,000 shares in 1 lot. It is a 100% book building issue and investors can subscribe to it between 9 am and 5 pm.
3) Divyadhan Recycling Industries IPO GMP
In the unlisted market, the company’s shares were not commanding any grey market premium ahead of the opening of issue.
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4) About Divyadhan Recycling Industries
The company is into the business of manufacturing of Recycled Polyester Staple Fibre (R-PSF) and Recycled Pellets. The recycled fibre and pellets are produced from post-consumer PET bottles also known as Polyethylene Terephthalate bottles. The company started its operations in the financial year 2018-19, by manufacturing Recycled Polyester Staple Fibre (R-PSF) at their manufacturing facility based in Baddi, Himachal Pradesh.
The company was incorporated in May 2010 and Pratik Gupta and Varun Gupta are its promoters.
5) Industry overview
The global industry was valued at US$ 31.8 Bn in 2023. It is expected to grow at a CAGR of 4.7% from 2024 to 2034 and reach US$ 52.4 Bn by the end of 2034.
6) Divyadhan Recycling Industries financial performance
Revenue from operations for the financial year ended March 31, 2024 stood at Rs 56.13 crore versus Rs 57.34 crore in FY23 and Rs 57.78 crore in FY22. Profit after tax in the said periods stood at Rs 2.38 crore, Rs 2.16 crore and Rs 52.91 lakh. Cash flow from operating activities over the last three FYs was Rs 22.98 lakh, Rs 4.42 crore and Rs 3.84 crore, respectively.
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7) Objects of the offer
The company intends to utilise Rs 17.03 crore towards purchase of plant and machinery. Some part of the net proceeds will be used for general corporate purposes. However, the amount utilised for general corporate purposes will not exceed 25% of the gross proceeds of the issue.
8) Lead managers and Registrar
Narnolia Financial Services Limited is acting as the lead manager to the issue and Skyline Financial Services Private Limited is the registrar.
9) Issue structure
About 50% of the offer is reserved for QIB investors, 35% for retail investors, and the rest 15% for non-institutional investors.
10) Important dates
The IPO opened on September 26 and will close on September 30. The final allotment will likely be made on October 1. The company’s shares will likely get listed on October 4.
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