Divyadhan Recycling Industries Limited is coming up with an IPO with a fresh issue of 37,76,000 shares worth INR 24.17 crores. The company aims to meet the capital expenditure, and fund for general corporate purposes.
Divyadhan Recycling Industries IPO – Important Dates
| Divyadhan Recycling Industries Limited IPO Date | September 26, 2024 to September 30, 2024 |
| Divyadhan Recycling Industries Limited IPO Listing Date | October 4, 2024 |
| Divyadhan Recycling Industries Limited IPO Price | INR 60-64 per share |
| Divyadhan Recycling Industries Limited IPO Lot Size | 2000 Shares |
| Divyadhan Recycling Industries Limited IPO Total Issue Size | INR 24.17 crores |
| Divyadhan Recycling Industries Limited IPO Basis of Allotment | October 1, 2024 |
| Divyadhan Recycling Industries Limited IPO Initiation of Refunds | October 3, 2024 |
| Divyadhan Recycling Industries Limited IPO Credit of Shares to Demat | October 3, 2024 |
| Divyadhan Recycling Industries Limited IPO Issue Type | Book Built Issue IPO |
| Divyadhan Recycling Industries Limited IPO Listing At | NSE SME |
Read more about Divyadhan Recycling Industries Limited IPO GMP
Divyadhan Recycling Industries Limited IPO – Company Profile
The company manufactures 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 with a capacity of 8030 Metric tons per annum.
The company produces Hollow and Solid Recycled Polyester Staple Fibre, which gives good resilience properties and is used to make premium pillows, cushions and quilts. The recycled fibre is supplied to various industries such as Packaging, home furnishing, and Textiles. FSSAI has issued latest instructions dated June 15, 2022, for acceptance criteria for recycled PET for food packaging.
Divyadhan Recycling Industries Ltd IPO Fundamental Analysis
Divyadhan Recycling Industries, despite stable revenues, improved profitability, increasing equity, and reduced debt strengthened the company’s fundamentals. The declining inventory turnover ratio may indicate inefficiencies, but overall, the financial health suggests a cautiously positive outlook. The IPO could be considered for investment, especially if the company sustains profitability and reduces operational risks.
*Revenue and Profitability:
Revenue has declined slightly from ₹5,777.70 lakhs in 2022 to ₹5,612.99 lakhs in 2024, suggesting stagnation in sales growth. However, the company’s profit after tax has steadily increased from ₹52.91 lakhs in 2022 to ₹237.80 lakhs in 2024, indicating improved cost management and profitability despite flat revenue.
*Equity and EPS:
Equity has grown significantly from ₹637.05 lakhs in 2022 to ₹1,291.03 lakhs in 2024, reflecting stronger financial health. The diluted EPS also improved from ₹0.54 in 2022 to ₹2.41 in 2024, showing enhanced returns for shareholders.
*Return on Net Worth (RoNW):
RoNW spiked to 25.34% in 2023 but dropped to 18.42% in 2024, signaling some volatility in shareholder returns.
*Assets and Liabilities:
Total assets increased from ₹1,767.74 lakhs in 2022 to ₹2,412.11 lakhs in 2024, showing growth. Meanwhile, liabilities have remained stable around ₹1,121.08 lakhs, resulting in a decreasing debt-equity ratio from 1.26 to 0.47, which is positive.
*Liquidity and Inventory Management:
The current ratio improved to 1.14 in 2024, indicating better liquidity. The inventory turnover ratio has remained around 10 times, though it’s down from 22.22 in 2022, suggesting slower inventory movement.
Divyadhan Recycling Industries IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in lakhs) | 5777.70 | 5733.83 | 5612.99 |
| Equity (₹ in lakhs) | 637.05 | 853.23 | 1,291.03 |
| Expenses (₹ in lakhs) | 5909.26 | 5515.45 | 5583.48 |
| Profit and Loss After Tax (₹ in lakhs) | 52.91 | 216.18 | 237.80 |
| Diluted EPS only (₹) | 0.54 | 2.20 | 2.41 |
| Return on Net Worth (%) | 8.31 | 25.34 | 18.42 |
| NAV per Equity Share (₹) | 6.49 | 8.69 | 13.06 |
| Total Assets (in lakhs) | 1,767.74 | 1,938.64 | 2412.11 |
| Total Liabilities (in lakhs) | 1,130.69 | 1,085.41 | 1,121.08 |
| Debt Equity Ratio | 1.26 | 0.64 | 0.47 |
| Current Ratio (in times) | 0.90 | 0.94 | 1.14 |
| Inventory Turnover Ratio | 22.22 | 10.19 | 10.02 |
Divyadhan Recycling Industries Limited IPO Peer Comparison
Divyadhan Recycling shows a moderate profit after tax with an RoNW of 18.42% but lacks a P/E ratio, indicating growth potential. Ganesha Ecosphere excels with significantly higher profit, a strong EPS, but a lower RoNW of 5.74%.
| Company | Profit after tax (₹ in lakhs) | Face Value per Equity Share (₹) | P/E Ratio | EPS (Basic & Diluted) (₹) | RoNW (%) |
| Divyadhan Recycling Industries Limited | 237.80 | 10 | NA | 2.41 | 18.42 |
| Ganesha Ecosphere Limited | 6,247.53 | 10 | 68.36 | 27.90 | 5.74 |
Divyadhan Recycling Industries Ltd IPO Objective
The main objective of Divyadhan Recycling Industries is to use INR 17.03 crores for purchasing plant and machinery at its Baddi facility. The remaining funds will cover general corporate purposes, including operating expenses, project development, business growth, and unforeseen costs.
- To Meet Working Capital Requirements: The company intends to carry out capital expenditure by purchasing various plants and machineries. These plant and machinery will set up at the manufacturing facility located at Baddi, Himachal Pradesh. For the said purpose the company plans to utilise INR 17.03 crores.
- General Corporate Purpose: The company will deploy the balance of funds for general corporate purposes, including meeting operating expenses and initial development costs for various projects, strengthening business development and marketing capabilities, and addressing unforeseen exigencies in ordinary operations.
Divyadhan Recycling Industries IPO Risks And Challenges
Divyadhan Recycling Industries risks include heavy reliance on Himachal Pradesh for the majority of its revenue, dependence on a single customer (88% from PV Fibers LLP), and potential negative impacts from inconsistent product quality affecting sales and reputation.
- The majority of the state-wise revenues from operations for the last 3 years is majorly derived from Himachal Pradesh. Any adverse developments affecting the operations in this state could have an adverse impact on the revenue and results of operations.
- Almost 88% of the revenue comes from only one customer- PV Fibers LLP. Any loss of business from this customer may adversely affect the revenues and profitability.
- Inconsistent Product quality could lead to customer dissatisfaction, hampering reputation, sales and business which may materially and adversely affect the business and prospects.
Divyadhan Recycling Industries Ltd IPO – Industry & Market Potential
India Polyester Staple Fibre Market has reached USD1.54 billion by 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 4.25% through 2029. Polyester Staple Fibre (PSF) is extensively used in spinning and other textile applications due to its durability, cost-effectiveness, and versatility.
In the Indian PSF market, there are two main categories: solid and hollow products. Solid PSF is widely popular in traditional textile manufacturing, known for its strength and resilience. On the other hand, hollow PSF is gaining traction for its unique properties such as lightweightness and excellent insulation.
Divyadhan Recycling Industries Limited IPO – Type of Offer
Divyadhan Recycling Industries Limited is launching an IPO with a fresh issue of 37,76,000 shares valued at INR 24.17 crores. The proceeds will be utilized for capital expenditure and general corporate purposes.
Divyadhan Recycling Industries IPO Offer Size
The offer size for Divyadhan Recycling Industries Limited’s IPO is INR 24.17 crores, consisting of 37,76,000 fresh shares. The funds will be used for capital expenditure and general corporate purposes.
Divyadhan Recycling Industries Limited IPO Allotment Structure
Divyadhan Recycling Industries Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 2,00,000 shares are reserved for market makers.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
● Market Maker Reservation: A portion of shares, i.e. 2,00,000 shares, are reserved for market makers.
How to apply for the Divyadhan Recycling Industries IPO?
To apply for the Divyadhan Recycling Industries Limited IPO through Alice Blue, follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Divyadhan Recycling Industries Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Divyadhan Recycling Industries Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
Read more about Divyadhan Recycling Industries IPO Day 1 Subscription
How do you check Divyadhan Recycling Industries IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Divyadhan Recycling Industries Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the DivyadhanRecycling Industries Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Divyadhan Recycling Industries Limited IPO:
● Registrar’s Website: Visit the website of Skyline Financial Services Private Limited, the registrar of the Divyadhan Recycling Industries Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Divyadhan Recycling Industries Ltd IPO Offer Registrar
The registrar for the Divyadhan Recycling Industries Limited IPO is Skyline Financial Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Skyline Financial Services Private Limited
D-153 A, 1st Floor, Okhla Industrial Area, Phase – I, New Delhi-110020
Email: [email protected]
www.skylinerta.com
Divyadhan Recycling Industries IPO – FAQs
1. What is the allotment date of the Divyadhan Recycling Industries IPO?
The allotment date of the Divyadhan Recycling Industries Limited IPO is October 1, 2024.
2. What is the price band of the Divyadhan Recycling Industries IPO?
The price band of the issue is INR 60-64 per share.
3. What is the size of the Divyadhan Recycling Industries IPO?
The offer size for Divyadhan Recycling Industries Limited’s IPO is INR 24.17 crores, consisting of 37,76,000 fresh shares. The funds will be used for capital expenditure and general corporate purposes.
4. What is the listing date of the Divyadhan Recycling Industries IPO?
The listing date of Divyadhan Recycling Industries Limited’s IPO is October 4, 2024.
