Divyadhan Recycling Industries
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 26 Sep 2024 – 30 Sep 2024
- Listing date
- 04 Oct 2024
- Face value
- ₹10 per share
- Issue price
- ₹64 per share
- Lot size
- 2,000 shares
- Issue type
- Book Building issue
- Listing at
- NSE
- Total issue size
- ₹24.17 Cr
- Market cap at offer price
- ₹91.56 Cr
- Promoter holding
- 94.06% → 69.24% pre-issue → post-issue
- ISIN
- INE0QYI01019
- Registrar
- Skyline Financial Services Pvt.Ltd.
- Lead managers
- Narnolia Financial Services Ltd.
- Registered office
- 1803, Lodha Supremus, Saki Vihar Road, Opp.Telephone Exchange, Powai, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 10,70,000 | — | — |
| Market maker | 2,00,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹64
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,28,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,56,000 |
| S-HNI (max) | 7 | 14,000 | ₹8,96,000 |
| B-HNI (min) | 8 | 16,000 | ₹10,24,000 |
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.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 2.26 | 1.66 |
| P/E (×) | 28.32 | 38.55 |
| Price to book (×) | 4.90 | — |
| Market cap | — | ₹91.56 Cr |
Key performance indicators
- Return on net worth
- 18.42%
- ROCE
- 20.76%
- Debt / equity
- 0.47
- PAT margin
- 4.24%
- NAV per share
- ₹13.06
- Price to book
- 4.90
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Divyadhan Recycling Industries
Divyadhan Recycling Industries Limited was incorporated as a private limited company on May 03, 2010 and converted to a public limited company on March 02, 2024. The company is into the business of manufacturing Recycled Polyester Staple Fibre (R-PSF) and Recycled Pellets produced from post-consumer PET bottles (Polyethylene Terephthalate). The company started its operations in the financial year 2018-19, manufacturing Recycled Polyester Staple Fibre at its manufacturing facility based in Baddi, Himachal Pradesh. The company generates revenue from sale of recycled fiber, recycled pellets, pet flakes, PET recycling by-products, scrap, and EPR certificates, with recycled fiber being the primary revenue driver at 94.68% of total revenue in FY 2024.
Company Analysis
from RHPDivyadhan Recycling Industries Limited manufactures recycled polyester staple fibre (R-PSF) and recycled pellets from post-consumer PET bottles, operating in the recycling and specialty materials industries.
Divyadhan Recycling Industries Limited was incorporated as a private limited company on May 03, 2010 and converted to a public limited company on March 02, 2024. The company is into the business of manufacturing Recycled Polyester Staple Fibre (R-PSF) and Recycled Pellets produced from post-consumer PET bottles (Polyethylene Terephthalate). The company started its operations in the financial year 2018-19, manufacturing Recycled Polyester Staple Fibre at its manufacturing facility based in Baddi, Himachal Pradesh. The company generates revenue from sale of recycled fiber, recycled pellets, pet flakes, PET recycling by-products, scrap, and EPR certificates, with recycled fiber being the primary revenue driver at 94.68% of total revenue in FY 2024.
Objects of the Issue
- Capital Expenditures 1703.71 lakhs p.23
- General Corporate Purpose p.23
- Capital Expenditure - Purchase of Plant and Machinery 1703.71 lakhs p.81
- General Corporate Purposes [●] lakhs (not to exceed 25% of gross proceeds) p.87
- Issue Related Expenses [●] lakhs p.87
- Not specified in this document section
Issue Structure
- Total Issue
- 37,76,000 Equity Shares of face value of Rs.10/- each aggregating to Rs. [●] Lakhs
- Fresh Issue
- 37,76,000 Equity Shares of face value of Rs.10/- each fully paid-up for cash at price of Rs. [●]/- per Equity Share aggregating to Rs. [●] Lakhs
- Offer for Sale
- NIL
- Price Band
- Floor Price: Rs. 60/- per Equity Share; Cap Price: Rs. 64/- per Equity Share (6.00 times to 6.40 times of face value)
- Lot Size
- Bid Lot: 2,000 Equity Shares and in multiples of 2,000 Equity Shares thereafter
- Face Value
- Rs.10/- per Equity Share
Business Model
The company earns revenue from the manufacture and sale of recycled polyester staple fibre, recycled pellets, pet flakes, and related products derived from post-consumer PET bottles. Additional revenue is generated from sale of by-products and EPR (Extended Producer Responsibility) certificates.
Business Segments
SWOT Analysis
- • Established manufacturing operations with modern facilities(p.22)
- • ISO certifications demonstrating quality standards(p.33)
- • Growing market demand for recycled polyester fiber(p.22)
- • Own manufacturing facility with significant capacity(p.131)
- • Experienced management and promoter guidance(p.131)
- • Small order fulfillment capability attracts diverse customer base(p.131)
- • Daily manufacturing operations maintain customer relationships(p.131)
- • ISO certifications for quality and environmental management(p.125)
- • Established manufacturing facility with owned land in Baddi, Himachal Pradesh(p.136)
- • Diversified product portfolio in waste management and recycling(p.146)
- • Experienced promoter team with deep industry knowledge(p.152)
- • Compliance with multiple environmental and waste management regulations(p.138)
- • Established recycled polyester fiber manufacturer with quality product portfolio(p.214)
- • Successful price realization through product quality and market positioning(p.214)
- • Government support via multiple incentive schemes(p.211)
- • Improving operational margins and profitability trajectory(p.217)
- • EBITDA expansion despite flat capacity utilization(p.218)
- • Heavy dependency on single major customer for revenue(p.32)
- • Geographic concentration of operations in Himachal Pradesh(p.29)
- • High dependency on top 10 suppliers for raw materials(p.32)
- • Promoters involved in legal proceedings(p.29)
- • Rented registered office with dependence on third party(p.29)
- • Low capacity utilization of recycled pellets facility(p.31)
- • Group companies involved in significant litigations with high amounts(p.30)
- • Missing corporate documentation from past transactions(p.31)
- • Revenue concentration in single geography and product(p.133)
- • Limited scale of pellets business in trial stage(p.125)
- • Low capacity utilization for recycled pellets(p.131)
- • Dependence on few customer relationships for revenue(p.131)
- • Small employee base relative to operations(p.134)
- • High dependence on a few customers and revenue concentration
- • Significant reliance on debt financing with short-term borrowing obligations(p.192)
- • Recent director resignation and management changes(p.156)
- • Single manufacturing plant location concentrated in one region(p.145)
- • High dependence on recycled fiber sales—dominant revenue contributor(p.210)
- • Rising finance costs indicating increased debt burden(p.212)
- • Significant secured borrowings outstanding from banks(p.220)
- • GST compliance issues and pending show cause notices involving substantial demands(p.231)
- • Multiple unresolved income tax notices and demands pending(p.222)
- • Expansion of manufacturing capacity for recycled products(p.23)
- • Growth in Indian polyester fiber market(p.22)
- • Rising demand for sustainable and recycled products(p.23)
- • Industry focus on environmental sustainability and circular economy(p.22)
- • Rapid growth in recycled polyester fiber market(p.118)
- • Expansion of plastic pellets market globally(p.121)
- • Growing demand in automotive and construction industries(p.117)
- • Increasing non-woven applications for polyester fibers(p.119)
- • Capacity expansion through purchase of plant and machinery(p.132)
- • Government support for waste management and recycling initiatives(p.191)
- • Capacity to expand recycling and waste management services across India(p.146)
- • Growing compliance requirements for plastic waste management(p.138)
- • Development of innovative technologies for recycling and waste treatment(p.146)
- • Diversification into new product lines beyond recycled fiber(p.210)
- • Emerging commission income stream from related party arrangements(p.211)
- • Government grants and GST reimbursement schemes providing incremental capital(p.211)
- • IPO listing to fund expansion and strengthen balance sheet(p.238)
- • Economic slowdown in India affecting demand(p.45)
- • Inflation impacting operational costs(p.45)
- • Changes in government policies and regulations(p.44)
- • Supply chain disruptions and raw material unavailability(p.39)
- • Shortage or price fluctuations in electricity and water(p.38)
- • Environmental compliance risks(p.38)
- • Impact of contagious diseases on operations(p.44)
- • Natural calamities and geopolitical risks(p.46)
- • Intense competition from larger, better-capitalized companies(p.135)
- • Low barriers to entry in recycling industry(p.135)
- • Volatility in raw material prices(p.119)
- • Environmental concerns and regulatory pressures on plastics(p.118)
- • Dependence on availability of post-consumer PET bottles as raw material(p.125)
- • Volatility in raw material costs and PET bottle collection prices(p.207)
- • Stringent regulatory requirements and environmental compliance costs(p.138)
- • Competition from larger waste management and recycling companies(p.207)
- • Dependency on post-consumer PET bottle supply chain sustainability(p.145)
- • Raw material price volatility affecting cost structure(p.214)
- • Capacity utilization pressure affecting revenue despite pricing increases(p.214)
- • Regulatory and tax compliance risks with multiple pending disputes(p.230)
- • Competition from existing and new market entrants(p.219)
- • Group company litigation risks from loan guarantees and disputed liabilities(p.227)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Pratik Gupta | Promoter | 47.03% | 34.62% |
| Mr. Varun Gupta | Promoter | 47.03% | 34.62% |
| Pratik Gupta | Promoter | 47.03% | 34.62% |
| Varun Gupta | Promoter | 47.03% | 34.62% |
| Mr. Varun Gupta | Promoter/Managing Director | 47.03% | — |
| Mr. Pratik Gupta | Promoter/Director | 47.03% | — |
Leadership
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.