Divyadhan Recycling Industries is scheduled to hit the market on September 26, 2024 and close on September 30, 2024. Divyadhan Recycling Industries plans to raise around ₹24.17 Cr through an IPO with a sale of up to 3,776,000 equity shares of ₹10 each. The Retail offered 35%, QIB Shares Offered 50%, HNI Shares Offered 15%.
Divyadhan Recycling Industries Limited was started in May 2010 and makes Recycled Polyester Staple Fibre (R-PSF) and recycled pellets. The company has quality certifications for its manufacturing processes, ensuring they meet environmental standards.
The manufacturing unit is located in Kalyanpur, Baddi, Solan District, Himachal Pradesh. It has a production capacity of 8,030 metric tons per year for fiber and 4,320 metric tons per year for pellets. As of August 31, 2024, there are about 83 employees working in different departments of the company.
Divyadhan Recycling Industries IPO Details
Divyadhan Recycling Industries IPO opens on September 26, 2024, and closes on September 30, 2024. The Listing date for Divyadhan Recycling Industries IPO is on October 04, 2024. The price band for IPO is ₹60 to ₹64 per share and lot size of 2000 Shares.
| IPO Date | September 26, 2024 to September 30, 2024 |
| Listing Date | October 04, 2024 |
| Price | ₹60 to ₹64 per share |
| Lot Size | 2000 Shares |
| Issue Size | ₹24.17 Cr |
| Face Value | ₹10 per share |
Divyadhan Recycling Industries IPO Tentative Timetable
Divyadhan Recycling Industries opening date is September 26, 2024 and close date is September 30, 2024. The IPO allotment date is October 01, 2024. Therefund initiation of IPO is on October 03, 2024. The credit of shares in demat account is on October 03, 2024. The listing date is on October 04, 2024.
| Event | Date |
|---|---|
| IPO Opening | September 26, 2024 |
| IPO Closing | September 30, 2024 |
| IPO Allotment Date | October 01, 2024 |
| Refund Initiation | October 03, 2024 |
| Shares Credit to Demat | October 03, 2024 |
| Lisiting Date | October 04, 2024 |
Divyadhan Recycling Industries IPO Lot Size
Lot Size of this IPO is 2000 shares. A retail-individual investor can apply for up to 1 lots (2000 shares or ₹128,000).
| Category | Lots | Shares | Amount |
|---|---|---|---|
| Retail(Minimum) | 1 | 2000 | ₹128,000 |
| Retail(Maximum) | 1 | 2000 | ₹128,000 |
| HNI (Minimum) | 2 | 4000 | ₹256,000 |
Divyadhan Recycling Industries IPO Promoter Holding
| Pre Issue Share Holding | 94.06% |
| Post Issue Share Holding | 69.24% |
Divyadhan Recycling Industries IPO Review
The company is launching its first IPO using the book building method. They are offering 3,776,000 equity shares at a price of Rs. 10 each to raise Rs. 24.17 crore (at the highest price).
In the last three financial years, the company has shown total income and net profit figures as follows:
- FY22: Total Income – Rs. 59.82 crores, Net Profit – Rs. 0.53 crores
- FY23: Total Income – Rs. 58.16 crores, Net Profit – Rs. 2.16 crores
- FY24: Total Income – Rs. 59.13 crores, Net Profit – Rs. 2.38 crores
The company's total income has remained almost the same over the three years, but its net profit has significantly increased in FY23 and FY24.
According to the management, by using modern technology and making improvements to the plant, the company has been able to produce high-margin and quality products that are in demand. This has resulted in better profits over the last two years. With new machinery, they expect to improve both their sales and profits in the coming years by offering more value-added products. The company also sees good opportunities in global markets for its products.
Over the last three years, the average Earnings Per Share (EPS) has been Rs. 2.03, and the average Return on Net Worth (RoNW) is 19.04%. The issue is priced at a Price-to-Book Value (P/BV) of 4.90 based on its Net Asset Value (NAV) of Rs. 13.06 as of March 31, 2024, and at a P/BV of 2.36 based on its post-IPO NAV of Rs. 27.14 per share (at the upper limit).
If we consider the strong earnings from FY24 against its post-IPO fully diluted equity capital, the asking price reflects a Price-to-Earnings (P/E) ratio of 38.55. Based on FY23 earnings, the P/E ratio is 42.38. Therefore, this issue seems to be priced quite high.
The company reported Profit After Tax (PAT) margins of 0.92% for FY22, 3.77% for FY23, and 4.24% for FY24. The Return on Capital Employed (RoCE) margins were 10.30% for FY22, 25.48% for FY23, and 20.76% for FY24 during these periods.
The company makes recycled polyester staple fiber and pellets. It has seen steady sales over the last three financial years but has experienced a significant increase in profits for FY23 and FY24 due to cost management and added features to its products. It operates in a highly competitive market. Based on earnings from FY24, the stock seems to be fairly priced. Even though it appears fully priced, the company has good potential for growth in the future. Investors might consider investing for the long term.
Divyadhan Recycling Industries IPO Subscription Status (Bidding Details)
Table not foundDivyadhan Recycling Industries IPO Broker Recommendations
- Capital Market: To be updated soon
- Anand Rathi: To be updated soon
- SMC Global: To be updated soon
- Arihant Capital: To be updated soon
Divyadhan Recycling Industries IPO FAQs
What is Divyadhan Recycling Industries IPO?
Divyadhan Recycling Industries is issuing 3,776,000 equity shares with a face value of ₹10 each, totaling up to ₹24.17 Cr. The shares are being offered at a price of ₹60 to ₹64 each, with a minimum order quantity of 2000 shares.
Skyline Financial Services Private Ltd is the registrar for the IPO, and the shares are planned to be listed on the BSE and NSE.
When Divyadhan Recycling Industries IPO will open?
Divyadhan Recycling Industries will open on September 26, 2024 for QIB, NII, and Retail Investors.
When Divyadhan Recycling Industries IPO will end?
Divyadhan Recycling Industries will end on September 30, 2024.
What is Divyadhan Recycling Industries IPO Size?
Divyadhan Recycling Industries IPO size is ₹24.17 Cr.
What is Divyadhan Recycling Industries IPO Price Band?
Divyadhan Recycling Industries price band is ₹60 to ₹64 per share.
What is Divyadhan Recycling Industries IPO Allotment Date?
Divyadhan Recycling Industries allotment date is October 01, 2024.
What is Divyadhan Recycling Industries IPO Listing Date?
Divyadhan Recycling Industries listing date is October 04, 2024. The IPO is to be listed on BSE and NSE.
How to Divyadhan Recycling Industries IPO through Zerodha?
To apply for the IPO “Divyadhan Recycling Industries” on Zerodha, log in to the Zerodha website or app, go to the Portfolio section, and click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Zerodha.
How to Apply Divyadhan Recycling Industries IPO through Upstox?
To apply for the IPO “Divyadhan Recycling Industries” on Upstox, log in to the Upstox website or app, click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Upstox.
How to check Divyadhan Recycling Industries IPO Allotment Status?
For Divyadhan Recycling Industries IPO Allotment status check you can visit this link, select the desired IPO and enter your PAN to check the allotment status.
What is Divyadhan Recycling Industries IPO GMP?
You can check out here: Divyadhan Recycling Industries IPO GMP. Check all IPO GMP here.