Baheti Recycling SME
SME₹12.42 Cr issue
+166.67%
Listing gain over issue price
Issue size
₹12.42 Cr
1 lot at cut-off
₹1,35,000
Lot size
3,000shares
Open
28 Nov 2022
Close
30 Nov 2022
Allotment
05 Dec 2022
Listing
08 Dec 2022
Listing performance
Issue price
₹45
Listed at
₹120
Listing-day close
₹114
Latest price
₹704.30
Close on 23 Oct 2026
Listing gain
+166.67%
Return since issue
+1465.11%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 28 Nov 2022 – 30 Nov 2022
- Listing date
- 08 Dec 2022
- Face value
- ₹10 per share
- Issue price
- ₹45 per share
- Lot size
- 3,000 shares
- Total issue size
- ₹12.42 Cr
- Market cap at offer price
- ₹46.66 Cr
- Promoter holding
- 99.98% → 73.37% pre-issue → post-issue
- ISIN
- INE029Q01017
- Registrar
- Purva Sharegistry (India) Pvt.Ltd.
- Lead managers
- Hem Securities Ltd.
- Registered office
- A-2/3, L.R.Apartments, Opp.Police Commissioner Office, Shahibaug, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 1,47,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹45
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,35,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,70,000 |
| S-HNI (max) | 7 | 21,000 | ₹9,45,000 |
| B-HNI (min) | 8 | 24,000 | ₹10,80,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
₹45 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹46.66 Cr |
Key performance indicators
Latest reported period
- PAT margin
- 1.17%
- NAV per share
- ₹21.94
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Baheti Recycling SME
Incorporated in 1994, Baheti Recycling Industries Limited (formerly known as Baheti Metal And Ferro Alloys Limited) is an aluminium recycling company primarily engaged in processing aluminium-based metal scrap to manufacture (i) aluminium alloys in the form of ingots and (ii) aluminium de-ox alloys in the form of cubes, ingots, shots and notch bar. The Company operates a manufacturing facility in Dehgam, Gandhinagar, Gujarat with an installed production capacity of 12,000 MT. Aluminium alloys are used in automobiles, construction, electrical transmission applications, and food packaging due to their stiffness, corrosion resistance and excellent strength to weight ratio. Aluminium de-ox alloys are used as deoxidizers in steel manufacturing units.
Company Analysis
from RHPBaheti Recycling Industries Limited is an aluminium recycling company engaged in processing aluminium-based metal scrap to manufacture aluminium alloys and de-ox alloys.
Incorporated in 1994, Baheti Recycling Industries Limited (formerly known as Baheti Metal And Ferro Alloys Limited) is an aluminium recycling company primarily engaged in processing aluminium-based metal scrap to manufacture (i) aluminium alloys in the form of ingots and (ii) aluminium de-ox alloys in the form of cubes, ingots, shots and notch bar. The Company operates a manufacturing facility in Dehgam, Gandhinagar, Gujarat with an installed production capacity of 12,000 MT. Aluminium alloys are used in automobiles, construction, electrical transmission applications, and food packaging due to their stiffness, corrosion resistance and excellent strength to weight ratio. Aluminium de-ox alloys are used as deoxidizers in steel manufacturing units.
Aluminium recyclingAluminium alloy manufacturingSteel industry (as end-user)Automobile and auto-components sectorConstructionElectrical transmissionFood packaging
Objects of the Issue
- Modernization and expansion of existing manufacturing unit ₹255.21 lakhs p.20
- To meet Working Capital requirements ₹700.00 lakhs p.20
- General Corporate Purpose ₹190.29 lakhs p.20
- Modernization and expansion of existing manufacturing unit Rs. 255.21 lakhs p.85
- To meet Working Capital requirements Rs. 700.00 lakhs p.85
- General Corporate Purpose Rs. 190.29 lakhs p.85
- To meet issue expenses Rs. 96.50 lakhs p.87
- Funding capex for capacity expansion and technological upgradation p.209
Issue Structure
- Total Issue
- ₹1242.00 lakhs
- Fresh Issue
- ₹1242.00 lakhs (27,60,000 equity shares at ₹45 per share)
- Offer for Sale
- Nil
- Price Band
- ₹45 per equity share (fixed price)
- Lot Size
- 3000
- Face Value
- ₹10 per equity share
Business Model
The Company manufactures and sells aluminium alloys and de-ox alloys, generating revenue from customers engaged primarily in the steel sector and auto-components sector. For F.Y. 2022, revenues from steel sector and auto-components sector constituted approximately 38.5% and 41.8% respectively of revenue from operations. The Company does not have firm long-term commitments and instead relies on short-term purchase orders from customers. Top five customers for F.Y. ended March 31, 2022 accounted for 60.94% of revenue from operations.
Business Segments
Manufacturing aluminium alloys in the form of ingots used in automobiles, construction, electrical transmission applications, and food packaging.
Manufacturing aluminium de-ox alloys in the form of cubes, ingots, shots and notch bar used as deoxidizers in steel manufacturing units.
Anti-oxidant products used to remove gases from molten steel, produced in the form of cubes, ingots, shots and notch bar. Contains 93% to 99% purity as per customer requirements. Made from aluminium scrap such as used beverage cans, radiators, sheets and foils.
Produced by adding alloying elements such as silicon, copper, magnesium, manganese, titanium, strontium in different grades (ADC-12, ADC-6, LM-6, LM-9, ALSI-8 CU3 etc.) containing 80-85% aluminium. Capable of withstanding high temperature with optimal corrosion resistance. Used in automobile, electronics, LED components and die-casting industries.
Trading of scrap materials including aluminium scrap, brass scrap, copper scrap, zinc scrap, silicon metal, ferro chrome and other scraps.
Processing of aluminium-based metal scrap to manufacture aluminium alloys in the form of ingots and aluminium de-ox alloys in the form of cubes, ingots, shots and notch bar.
As we operate in single segment i.e. manufacturing & trading of aluminium based products and related items, the same is not applicable on our Company
SWOT Analysis
Strengths
- • In-house manufacturing facility with technology-driven process enabling cost-effective production(p.109)
- • Stringent multi-stage quality control mechanism ensuring product conformance(p.109)
- • Diversified customer base with long-standing relationships spanning five years(p.109)
- • Globally diversified supplier base providing cost advantages and supply security(p.109)
- • Experienced promoter management with 35+ years combined industry expertise(p.110)
- • ISO certifications (9001:2015, 14001:2015, 45001:2018) demonstrating quality and safety standards(p.109)
- • Established metal recycling and processing business with 28+ years of operations since 1994(p.128)
- • Diverse product portfolio in aluminium alloys and de-ox alloys across multiple forms(p.158)
- • Consolidated manufacturing facility with land and building assets in place(p.128)
- • Experienced promoter with 35+ years in the metal industry(p.134)
- • Recent successful amalgamation demonstrating operational integration capability(p.130)
- • Established aluminum recycling capacity with modern facilities(p.192)
- • Strategic location near key customer manufacturing facilities(p.192)
- • Environmental advantage of recycled aluminum over primary production(p.192)
- • ISO certifications demonstrating quality and safety standards(p.208)
- • Revenue growth and improved profitability(p.194)
Weaknesses
- • Substantial dependence on few customers; top 5 customers accounted for 60.94% of FY2022 revenue(p.26)
- • Volatile raw material prices with exposure to commodity price fluctuations and FX risk(p.27)
- • High inventory levels increase working capital requirements and risk of obsolescence(p.29)
- • Negative operating cash flow in FY 2020-21 despite strong overall growth(p.35)
- • Trademark not registered; subject to objection under Trademarks Act(p.33)
- • Unsecured loans that can be recalled at any time; limited working capital buffer(p.36)
- • High debt level; total outstanding indebtedness of Rs. 4,536.31 lakhs as of May 31, 2022(p.37)
- • Unregistered office space on rent from promoter; risk of termination affecting operations(p.35)
- • Past non-compliance with corporate regulations and accounting standards(p.34)
- • Lacking documentation of corporate records from 1997-1998 onwards(p.35)
- • Heavy dependence on imported raw materials for aluminium scrap sourcing(p.116)
- • Exposure to metal price volatility affecting raw material costs(p.109)
- • Single manufacturing facility concentration in Dehgam, Gandhinagar(p.108)
- • Historical capacity utilization below 100%, indicating underutilized capacity(p.115)
- • High debt-to-equity ratio indicating substantial leverage(p.185)
- • Weak cash generation and low profitability margins(p.185)
- • Significant dependence on unsecured promoter loans for working capital(p.169)
- • Pending litigation against the company involving workers' compensation claim(p.162)
- • Very low current liquidity position relative to short-term obligations(p.185)
- • High dependence on a small number of customers(p.197)
- • No long-term customer agreements(p.197)
- • Significant debt burden and financial leverage(p.199)
- • Outstanding litigation against company and promoters(p.200)
- • Income tax demands and compliance issues(p.201)
Opportunities
- • Aluminium demand growth at CAGR of 6.77% across multiple sectors(p.20)
- • Diversified customer base across automotive (41.8%), steel (38.5%), and other sectors with overseas presence(p.29)
- • Planned capacity expansion funded by IPO proceeds(p.31)
- • Strong capacity utilization at 92.11% in FY2022 indicating healthy demand(p.32)
- • Modernization of manufacturing technology to reduce costs and increase efficiency(p.36)
- • Government push for EV adoption increasing demand for lightweight aluminium in automobiles(p.110)
- • Planned capacity expansion from 12,000 MTPA to 20,000 MTPA through new furnace installation(p.110)
- • Growing demand for recycled aluminium driven by 95% energy savings versus primary production(p.110)
- • Expansion into international markets currently representing only 8.83% of revenue(p.110)
- • India's growing non-ferrous metals demand driven by government's Make in India initiative targeting 25% manufacturing share(p.105)
- • Expanded business mandate following name change to emphasize recycling and circular economy alignment(p.119)
- • Increasing regulatory push for waste management and environmental compliance creating tailwinds for recyclers(p.124)
- • Government support through MSME classification and ECLGS credit scheme availability(p.166)
- • Export opportunity with established trade finance and export credit facilities in place(p.187)
- • Growth in key aluminum-consuming industries(p.192)
- • Capacity expansion through IPO proceeds(p.209)
- • Rising demand for environmentally sustainable materials(p.192)
- • Listing on NSE Emerge enables access to capital markets(p.217)
Threats
- • Cyclical downturn in steel and automotive sectors could reduce demand for products(p.29)
- • Raw material import restrictions and tariff changes could disrupt supply chain(p.27)
- • Intense competition from organized and unorganized players affecting pricing power(p.33)
- • Geographical concentration of operations in Gujarat vulnerable to regional disruptions(p.32)
- • Operational hazards including fire, explosion, and mechanical failures at manufacturing facility(p.29)
- • COVID-19 pandemic uncertainty could disrupt supply chain and operations(p.41)
- • Indian economic slowdown and inflation could reduce demand and increase input costs(p.41)
- • Changes in labor laws and regulations could impact operational flexibility and costs(p.42)
- • Regulatory changes including GST implementation could increase compliance burden(p.42)
- • Political instability and policy changes could affect market conditions and licensing(p.42)
- • Intense competition from organized and unorganized sector competitors(p.116)
- • Exposure to global commodity price volatility for aluminium scrap(p.109)
- • Dependence on supply chain stability for imported raw materials amid global disruptions(p.109)
- • Risk of equipment failure and operational hazards in manufacturing facility(p.117)
- • Regulatory changes in non-ferrous metal recycling and environmental compliance requirements(p.118)
- • Cyclical nature of metals and commodity price volatility affecting margins(p.131)
- • Dependence on access to aluminium scrap as raw material with no disclosed long-term supply agreements(p.158)
- • Competitive recycling industry with low barriers to entry attracting new participants(p.121)
- • Stringent environmental and occupational safety compliance requirements adding operational cost burden(p.119)
- • Concentrated plant location exposing company to regional operational disruptions(p.128)
- • Exposure to commodity price volatility (LME aluminum prices)(p.194)
- • Competition in aluminum recycling and alloy manufacturing(p.197)
- • Regulatory and environmental compliance risks(p.193)
- • Impact of economic downturns and market cycles(p.193)
- • Foreign exchange and input price risks(p.193)
- • Technology obsolescence risk(p.192)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Shankerlal Bansilal Shah | Promoter | 37.90% | 27.81% |
| Mr. Balkishan Shankerlal Shah | Promoter | 19.71% | 14.47% |
| Mr. Yash Shankerbhai Shah | Promoter | 19.71% | 14.47% |
| Mrs. Savitaben Shakerlal Shah | Promoter Group | 10.14% | 7.44% |
| M/s Shankerlal B. Shah HUF | Promoter Group | 3.77% | 2.77% |
| Mrs. Rashmi Balkishan Shah | Promoter Group | 4.38% | 3.21% |
| Mrs. Ayushi Shah | Promoter Group | 4.36% | 3.20% |
| Mr. Shankerlal B. Shah | Promoter | 28,84,000 shares (37.90%) | 28,84,000 shares (27.81%) |
| Mr. Yash Shankerbhai Shah | Promoter | 15,00,000 shares (19.71%) | 15,00,000 shares (14.47%) |
| Mr. Balkishan Shankerlal Shah | Promoter | 15,00,000 shares (19.71%) | 15,00,000 shares (14.47%) |
| Mrs. Savitaben Shankerlal Shah | Promoter Group | 7,71,155 shares (10.14%) | 7,71,155 shares (7.44%) |
| M/s Shankerlal B. Shah HUF | Promoter Group | 2,86,710 shares (3.77%) | 2,86,710 shares (2.77%) |
| Mrs. Rashmi Balkishan Shah | Promoter Group | 3,33,335 shares (4.38%) | 3,33,335 shares (3.21%) |
| Mrs. Ayushi Shah | Promoter Group | 3,31,990 shares (4.36%) | 3,31,990 shares (3.20%) |
| Shankerlal Bansilal Shah | Promoter | 37.90% | — |
| Balkishan Shankerlal Shah | Promoter | 19.71% | — |
| Yash Shankerbhai Shah | Promoter | 19.71% | — |
| Shankerlal B. Shah | Promoter/Promoter Group | — | — |
| Savita S Shah | Promoter/Promoter Group | — | — |
| Balkishan Shankerlal Shah | Promoter/Promoter Group | — | — |
| Yash Shankerbhai Shah | Promoter/Promoter Group | — | — |
Leadership
Mr. Shankerlal Bansilal Shah · Chairman & Whole Time Director
Mr. Balkishan Shankerlal Shah · Managing Director
Mr. Yash Shankerbhai Shah · Joint Managing Director
Mrs. Ayushi Yash Shah · Non-Executive Director
Mr. Satya Narain Mittal · Independent Director
Mr. Jaimish Govindbhai Patel · Independent Director
Mr. Manoj Kumar Shah · CFO
Mrs. Mansi Harsh Darji · Company Secretary & Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Baheti Recycling SME IPO FAQs
What is the lot size of Baheti Recycling SME IPO?
The minimum lot size of Baheti Recycling SME IPO is 3,000 shares. One lot costs ₹1,35,000 at the cut-off price.
When does Baheti Recycling SME IPO open and close?
Baheti Recycling SME IPO opened for subscription on 28 Nov 2022 and closed on 30 Nov 2022.
What is the listing date of Baheti Recycling SME IPO?
Baheti Recycling SME IPO listed on 08 Dec 2022.