IPO Details

Bidding Dates

26 Sep '24 - 30 Sep '24

Minimum Investment

₹1,28,000/ 1 Lot (2000 Shares)

Price Range

₹60 - ₹64

Maximum Investment

₹1,28,000/ 1 Lot (2000 Shares)

Retail Discount

To be announced

Issue Size

₹24.17 Cr

Investor category and sub category

Retail Individual Investors (RII)  |   Non-institutional Investors (NII)  |   Qualified Institutional Buyers (QIB)  |   Eligible employees  |  

IPO Dates

Important dates with respect to IPO allotment and listing

Opening Date

Sep 26, 2024

Closing Date

Sep 30, 2024

Basis of Allotment

Oct 1, 2024

Initiation of Refunds

Oct 3, 2024

Listing Date

Oct 4, 2024

About Divyadhan Recycling Industries IPO

Divyadhan Recycling Industries IPO is a fresh issue comprising 37.76 lakh shares, raising ₹24.17 crores. The IPO is set to open on September 26, 2024, and close on September 30, 2024. The allotment date is expected to be finalised on October 1, 2024, with the shares likely to be listed on the NSE SME on October 4, 2024.

The price band for the IPO is set between ₹60 and ₹64 per share, making it accessible to various investors. Retail investors can apply for a minimum of 2,000 shares, requiring an investment of ₹1,28,000. High Net Worth Individuals (HNIs) can invest in a minimum of two lots, which equates to 4,000 shares, amounting to ₹2,56,000.

Narnolia Financial Services Ltd is managing the IPO as the book running lead manager, while Skyline Financial Services Private Ltd serves as the registrar. Kantilal Chhaganlal Securities is the market maker, playing a crucial role in maintaining liquidity in the stock post-listing. This IPO provides investors an opportunity to participate in the expanding recycling industry through Divyadhan Recycling Industries.

Industry Outlook:

  1. Capital expenditure by the Union Government stood at ₹8.1 lakh crore, up by 36.5% year-on-year, while capital spending by 22 major states rose by 26.6%. Private sector investment projects completed in FY24 reached ₹3.1 lakh crore, significantly higher than ₹2.7 lakh crore in FY23.
  2. India's merchandise exports grew by 1.08% year-on-year in April 2024, driven by strong performances in electronic goods (25.8% growth), organic and inorganic chemicals (16.8%), petroleum products (3.1%), and pharmaceuticals (7.4%). Imports increased by 10.3%, widening the trade deficit by 32.3%.

Divyadhan Recycling Industries IPO Objectives

The company plans to allocate the net proceeds from the issuance to the following purposes:

  1. Funds will be used to support capital expenditures, enhancing operational capabilities and overall productivity.
  2. Allocation of funds towards general business needs to improve operational efficiency and support growth strategies.
  3. Part of the funds will cover costs related to the issue process, ensuring smooth and efficient listing on the NSE's Emerge Platform.

About Divyadhan Recycling Industries Limited

Divyadhan Recycling Industries Limited, originally incorporated as Divyadhan Consultants Private Limited in 2010, underwent a series of transformations, including a significant acquisition in 2015-16 when it purchased a manufacturing facility in Baddi, Himachal Pradesh, from Axis Bank under the SARFAESI Act. The company rebranded as Divyadhan Recycling Industries Private Limited in 2023 before converting to a public limited company in March 2024.

The company specialises in manufacturing Recycled Polyester Staple Fibre (R-PSF) and Recycled Pellets from post-consumer PET bottles, which are widely used in packaging, home furnishings, and textiles. Operations began in 2018-19 with a facility capable of producing 8,030 metric tons per annum. The company started producing Recycled Pellets in November 2023, currently in the trial stage.

Divyadhan Recycling Industries holds ISO 9001:2015 and ISO 14001:2015 certifications, reflecting its commitment to quality and environmental management. The company’s vision is to be a leader in PET waste recycling and promote environmental sustainability. By focusing on advanced recycling technology, the company aims to impact industries through sustainable practices and responsible waste management.

Peer Details

Ganesha Ecosphere Limited is the only listed peer considered by Divyadhan Recycling Industries Limited.

How to Check the Allotment Status of the Divyadhan Recycling Industries Limited IPO?

Steps to check IPO allotment status on Angel One’s app:

  1. Log in to the Angel One app
  2. Go to the IPO Section and then to IPO Orders.
  3. Select the individual IPO that you had applied for and check the allotment status.
  4. Angel One will notify you of your IPO allotment status via push notification and email.

How to apply for Divyadhan Recycling Industries IPO online?

  1. Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
  2. Locate the IPO Section: Navigate to the 'IPO' section on the platform.
  3. Select IPO: Find and select the Divyadhan Recycling Industries IPO from the list of open IPOs.
  4. Enter the Lot Size: Specify the number of lots you want to bid for.
  5. Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
  6. Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.

Contact Details of Divyadhan Recycling Industries IPO

  • Registered office: 1803, Lodha Supremus, Saki Vihar Road, Opp. Telephone Exchange, Powai, Mumbai City, Maharashtra - 400072, India
  • Phone: + 91-8928434702
  • E-mail: cs@divyadhan.in

IPO Financials

Particulars Year ending on March 31, 2024 Year ending on March 31, 2023 Year ending on March 31, 2022
Revenue from Operation (in ₹ lakh) 5612.99 5733.83 5777.70
Profit After Tax (PAT) (in ₹ lakh) 237.80 216.18 52.91
Current Ratio (x) 1.14 0.94 0.90
Net Worth (in ₹ lakh) 1291.03 853.23 637.05
EBITDA (in ₹ lakh) 570.18 506.67 289.64
Return on Equity (%) 0.18 0.25 0.08
Return on Capital Employed (RoCE) (%) 0.21 0.25 0.10
Earnings Per Share (in ₹) 2.41 2.20 0.54

Know before investing

Strengths

6

  1. Own manufacturing facility with 10,000 sqm of land ensures controlled production.

  2. Young, experienced promoters drive growth by identifying strategic opportunities.

  3. Small order size supports small-scale buyers and boosts profit margins.

  4. Continuous operation builds strong relationships and meets market demand.

  5. Expansion plans to increase capacity and capitalise on industry growth potential.

  6. Focus on quality standards strengthens customer loyalty and brand reputation.

Risks

6

  1. Registered office lease dependency could impact the business if vacated unexpectedly.

  2. Legal proceedings against promoters pose risks to operations and finances.

  3. Revenue dependency on Himachal Pradesh increases exposure to regional risks.

  4. Legal issues involving group companies may impact related party transactions.

  5. Non-statutory auditor-prepared financial statements could raise regulatory concerns.

  6. Underutilisation of manufacturing facilities may affect business performance negatively.

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Divyadhan Recycling Industries IPO FAQs

What is the Divyadhan Recycling Industries IPO?

Divyadhan Recycling Industries IPO is a book built IPO. The IPO will be open from September 26, 2024, to September 30, 2024.

When will Divyadhan Recycling Industries IPO be allotted?

The Basis of Allotment will happen on Tuesday, October 1, 2024.

When will Divyadhan Recycling Industries IPO open for subscription?

The IPO subscription window will open on September 26, 2024.

What minimum lot size can retail investors subscribe to?

The minimum lot size retail investors can subscribe to is 1 lot, and the lot size is 2,000 shares.

When will Divyadhan Recycling Industries Limited list on exchanges?

The listing date for Divyadhan Recycling Industries is Friday, October 4, 2024.

What would be the listing gains on the Divyadhan Recycling Industries IPO?

Listing gains cannot be ascertained before the listing of the IPO on the stock exchange.

How to increase your chances of getting a Divyadhan Recycling Industries IPO allotment?

  1. Multiple Submissions: Use different Demat accounts to make multiple applications.
  2. Higher Price Band Bidding: Opt for bidding at the cut-off price or higher price band.
  3. Timely Subscription: Ensure you subscribe to the IPO within the specified time frame.

How do I approve the UPI mandate request for Divyadhan Recycling Industries IPO?

You must complete the payment process by logging in to your UPI handle and approving the payment mandate.

Can I submit more than one application for the public issue of Divyadhan Recycling Industries Limited using one PAN?

You can submit only one application using your PAN card.

How to read Divyadhan Recycling Industries Limited's financial statements?

To read Divyadhan Recycling Industries’s financial statements, download the IPO’s  RHP document.