Divyadhan Recycling Industries Limited
Divyadhan Recycling Industries Limited(DIVYADHAN)
Total Shares
37,76,000
Issue Size
₹24.17 Cr
Price Band
₹60 – ₹64
Lot Size
2000 shares
Min. Investment
₹1,28,000
Max. Investment
₹1,28,000
Open Date
26 Sep, 2024
Close Date
30 Sep, 2024
Allotment
01 Oct, 2024
Listing
04 Oct, 2024
Max. Investment
₹1,28,000
Announced
26 Sep, 2024
Opening Date
26 Sep, 2024
Closing Date
30 Sep, 2024
Basis of Allotment
01 Oct, 2024
Initiation of Refunds
03 Oct, 2024
Credit of Shares
03 Oct, 2024
Listing Date
04 Oct, 2024
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About Divyadhan Recycling Industries Limited IPO
Incorporated in May 2010, Divyadhan Recycling Industries Limited manufactures Recycled Polyester Staple Fibre (R-PSF) and Recycled Pellets.
The company is certified for Quality Management System (ISO 14001:2015) and Environmental Management System (ISO 14001:2015) for manufacturing Recycled Polyester Staple Fibre.
The company operates in two business verticals:-
- Recycled Fiber: The company produces synthetic fibre known as Recycled Polyester Staple
Divyadhan Recycling Industries Limited IPO Share Price and Issue Size
Issue Breakdown
Shareholding
Dilution: 35.9% increase in shares
Divyadhan Recycling Industries Limited IPO Financials Health
Divyadhan Recycling Industries Limited IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 1 | 2000 | ₹1,28,000 |
| Retail Maximum | 1 | 2000 | ₹1,28,000 |
| HNI Minimum | 2 | 4000 | ₹2,56,000 |
(All values in CR)
Divyadhan Recycling Industries Limited IPO Valuation
| Metric | Value |
|---|---|
| Debt/Equity | 0.47 |
| PAT Margin (%) | 4.24 |
| ROCE | 20.76% |
| ROE | 18.42% |
| RoNW | 18.42% |
(All values in CR)
Strength & Risk of Divyadhan Recycling Industries Limited IPO
1. Sustainable Business Model.
2. Environmentally conscious approach.
3. Cordial relations with our customers.
4. Quality Deliverables.
1. Our Registered Office from where we operate are not owned by us. If we are required to vacate the same, due to any reason whatsoever, it may adversely affect our business operations.
2. Our Company is involved in certain legal proceedings/litigations. Any adverse decision in such proceedings may render us/them liable to penalties and may adversely affect our business and result of operations.
3. We have had negative cash flows in the past and may continue to have negative cash flows in the future.
4. The restated financial statements of the company has been provided by the peer reviewed chartered accountant who is not the statutory auditor of the Company.
5. Under-utilization of our currently operational manufacturing facilities and any inability to effectively utilize our proposed manufacturing capacity could have an adverse effect on our business, future prospects, and future financial performance.
6. Inconsistent Product quality could lead to customer dissatisfaction, hampering reputation, sales and business which may materially and adversely affect our business and prospects.
7. Changes in technology may render our current technologies obsolete or require us to make substantial investments.
8. Majority of our state wise revenues from operations for the last 3 years is majorly derived from Himachal Pradesh. Any adverse developments affecting our operations in this state could have an adverse impact on our revenue and results of operations.
9. We depend on a limited number of customers for a significant portion of our revenues. The loss of a major customer or significant reduction in demand from any of our major customers may adversely affect our business, financial condition, results of operations and prospects.
10. Our Company derive signification portion of revenue from Recycled PET Fiber and any reduction in the sale of such products could have an adverse the business, result of operations and financial condition.
Divyadhan Recycling Industries Limited IPO Subscription Status
| Investor Category | Subscription (times) | Shares Offered | Shares bid for | Total Amount (Rs Cr.) |
|---|---|---|---|---|
| Anchor | 1.00 | 10,70,000 | 10,70,000 | 6.85 |
| HNI | 76.41 | 5,38,000 | 4,11,06,000 | 263.08 |
| Market Maker | 1.00 | 2,00,000 | 2,00,000 | 1.28 |
| QIB | 29.39 | 7,16,000 | 2,10,46,000 | 134.69 |
| Retail | 32.43 | 12,52,000 | 4,06,08,000 | 259.89 |
| Total | 41.01 | 25,06,000 | 10,27,60,000 | 657.66 |
Divyadhan Recycling Industries Limited IPO GMP
Last updated 24 Sep, 2024 · Source: aggregated grey-market dealers
| Date | IPO Price | GMP | Sub2 Sauda | Est. Listing | Est. Profit | Updated |
|---|---|---|---|---|---|---|
| 24 Sep, 2024 | 64 | ₹0 | -- | ₹64 (0.00%) | - | 24 Sep, 2024 |
| 25 Sep, 2024 | 64 | ₹0 | -- | ₹64 (0.00%) | - | 25 Sep, 2024 |
| 26 Sep, 2024 | 64 | ₹0 | -- | ₹64 (0.00%) | - | 26 Sep, 2024 |
| 27 Sep, 2024 | 64 | ₹0 | -- | ₹64 (0.00%) | - | 27 Sep, 2024 |
| 30 Sep, 2024 | 64 | ₹0 | -- | ₹64 (0.00%) | - | 30 Sep, 2024 |
| 01 Oct, 2024 | 64 | ₹0 | -- | ₹64 (0.00%) | - | 01 Oct, 2024 |
| 03 Oct, 2024 | 64 | ₹0 | -- | ₹64 (0.00%) | - | 03 Oct, 2024 |
| 04 Oct, 2024 | 64 | ₹0 | -- | ₹64 (0.00%) | - | 04 Oct, 2024 |
Disclaimer: GMP is an unofficial signal from grey-market dealers and is not regulated by SEBI. Use it alongside subscription data and other research for informed decision-making.
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Divyadhan Recycling Industries Limited IPO Analysis
Divyadhan Recycling Industries Limited is preparing to launch its Initial Public Offering (IPO) to raise capital for business expansion, debt repayment, and general corporate purposes. Below is a summary and analysis of the IPO, highlighting key details along with a pros and cons list for investors.
Overview of Divyadhan Recycling Industries Limited IPO
Divyadhan Recycling Industries Limited, a leading company in recycled polyester staple fiber (R-PSF) and recycled pellets production, is entering the public market through an IPO. The company plans to raise funds to enhance its operations and strengthen its financial position.
Company Overview
Established in 2010, Divyadhan Recycling Industries Limited focuses on the manufacturing of recycled polyester staple fiber (R-PSF) and recycled pellets. These products are made from post-consumer PET bottles, contributing to sustainability efforts in the textile industry. The company operates from its manufacturing facility in Baddi, Himachal Pradesh, which commenced operations in FY 2018-19.
- Founded: 2010 (Converted to Public in 2023)
- Industry: Recycling, Polyester Staple Fiber, and Pellets
- Products: Recycled Polyester Staple Fiber (R-PSF), Recycled Pellets
Key Details of the IPO
- IPO Size: 37,76,000 equity shares with a face value of Rs. 10 each
- Use of Proceeds:
- Business Expansion: Expanding production capacity and improving operational efficiency.
- Debt Repayment: Reducing outstanding loans to improve financial stability.
- General Corporate Purposes: Strengthening the company’s overall financial position.
- Listing: Shares are proposed to be listed on the NSE Emerge platform
Pros of Investing in Divyadhan Recycling Industries Limited IPO
- Sustainable Business Model: The company focuses on recycling PET bottles to produce polyester fiber, which aligns with global sustainability efforts and the rising demand for eco-friendly products.
- Growing Demand for R-PSF: With the polyester staple fiber market expected to grow, Divyadhan is well-positioned to capitalize on the rising demand.
- Experienced Leadership: Led by promoters Pratik Gupta and Varun Gupta, the company benefits from seasoned leadership with a deep understanding of the recycling and textile industries.
- Expansion Plans: The IPO will fund the expansion of operations, which could lead to increased revenue and profitability in the future.
Cons of Investing in Divyadhan Recycling Industries Limited IPO
- Market Dependency: The company is dependent on the textile and plastics recycling industries. Any downturn in these sectors could negatively impact growth.
- Competition: The recycled fiber market is becoming increasingly competitive, with both domestic and international players vying for market share.
- Economic Sensitivity: The company’s performance is vulnerable to economic cycles, which may affect raw material costs and consumer demand.
- First Public Issue: As this is the company's first public issue, there is uncertainty regarding post-listing share performance and market reception.
Financial Performance and Market Position
Divyadhan Recycling Industries Limited has shown consistent growth in its financial performance, benefiting from the rising demand for recycled polyester. However, the company’s success will depend on its ability to manage costs and scale operations effectively in a competitive market.
- Revenue Growth: Steady growth in revenue, reflecting strong market demand for recycled products.
- Profitability: Healthy profit margins, though future performance will be affected by operational efficiency and market competition.
- Debt Reduction: Part of the IPO proceeds will be used to repay loans, improving the company’s balance sheet and reducing interest expenses?.
Should You Invest in Divyadhan Recycling Industries Limited IPO?
Investing in Divyadhan Recycling Industries Limited’s IPO offers an opportunity to participate in the growing market for sustainable and recycled products. The company’s commitment to expansion and sustainability positions it for potential growth. However, investors should weigh the risks, including market dependency and competition, before making a decision.
Conclusion
The Divyadhan Recycling Industries Limited IPO provides a chance to invest in a company contributing to sustainability while operating in a high-demand sector. With strong leadership and expansion plans, the company could be a solid investment, though investors must consider the risks associated with competition and market volatility.
FAQs About Divyadhan Recycling Industries Limited Ipo
Divyadhan Recycling Industries Limited IPO will open on 26 Sep, 2024 and close on 30 Sep, 2024. Investors must apply within this period to participate.
The Divyadhan Recycling Industries Limited IPO price band is set between ₹60.00 and ₹64.00 per share. The minimum lot size is 2000, requiring an investment of at least ₹128000.00.
The Divyadhan Recycling Industries Limited IPO shares are expected to be listed on 04 Oct, 2024, subject to regulatory approvals and final allotment.
You can track your Divyadhan Recycling Industries Limited IPO application status on the registrar’s website: Link Intime or KFintech using your PAN, application number, or DP ID
The Divyadhan Recycling Industries Limited IPO will be listed on major stock exchanges such as BSE, where you can trade shares once they are listed.