Greenhitech Ventures
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 12 Apr 2024 – 16 Apr 2024
- Listing date
- 22 Apr 2024
- Face value
- ₹10 per share
- Issue price
- ₹50 per share
- Lot size
- 3,000 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹6.30 Cr
- Market cap at offer price
- ₹23.50 Cr
- Promoter holding
- 100.00% → 73.19% pre-issue → post-issue
- ISIN
- INE0S0701019
- Registrar
- Skyline Financial Services Pvt.Ltd.
- Lead managers
- Beeline Capital Advisors Pvt.Ltd.
- Registered office
- B27/92 K1 Jawahar Nagar Colony, Bhelupura, Uttar Pradesh
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 | 66,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹50
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,50,000 |
| S-HNI (min) | 2 | 6,000 | ₹3,00,000 |
| S-HNI (max) | 6 | 18,000 | ₹9,00,000 |
| B-HNI (min) | 7 | 21,000 | ₹10,50,000 |
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
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 1.66 | 0.91 |
| P/E (×) | 30.12 | 54.95 |
| Price to book (×) | 3.77 | — |
| Market cap | — | ₹23.50 Cr |
Key performance indicators
- Return on net worth
- 7.80%
- ROCE
- 17.19%
- Debt / equity
- 0.95
- PAT margin
- 10.62%
- NAV per share
- ₹13.27
- Price to book
- 3.77
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Greenhitech Ventures
Greenhitech Ventures Limited was originally incorporated as a Partnership Firm 'Greentech Hydrocarbons' on November 18, 2011, and converted to a Private Limited Company on May 14, 2023, then to a Public Limited Company on October 10, 2023. The company is engaged in trading of petroleum-based products including biodiesel and light density oils for various industrial categories, and has recently diversified into operation and maintenance services as a job worker for ethanol manufacturing in government-owned distilleries. The company generates revenue through biofuel trading and ethanol production job work, focusing on providing business solutions and services to consumers of fuels and alternative materials across India while maintaining relationships with key customers in the energy sector.
Company Analysis
from RHPGreenhitech Ventures Limited is a petroleum-based products trader and ethanol manufacturing job worker operating across biofuels and renewable energy sectors in India.
Greenhitech Ventures Limited was originally incorporated as a Partnership Firm 'Greentech Hydrocarbons' on November 18, 2011, and converted to a Private Limited Company on May 14, 2023, then to a Public Limited Company on October 10, 2023. The company is engaged in trading of petroleum-based products including biodiesel and light density oils for various industrial categories, and has recently diversified into operation and maintenance services as a job worker for ethanol manufacturing in government-owned distilleries. The company generates revenue through biofuel trading and ethanol production job work, focusing on providing business solutions and services to consumers of fuels and alternative materials across India while maintaining relationships with key customers in the energy sector.
Objects of the Issue
- To Meet Working Capital Requirement ₹450.00 Lakhs p.18
- General Corporate Expenses ₹85.00 Lakhs p.18
- Public Issue Expenses ₹95.00 Lakhs p.18
- To Meet Working Capital Requirement ₹450.00 lakhs p.69
- General Corporate Purpose ₹85.00 lakhs p.69
- Working capital requirement p.194
- General corporate purpose p.194
- Issue expenses p.194
Issue Structure
- Total Issue
- ₹630.00 Lakhs
- Fresh Issue
- 12,60,000 Equity Shares of ₹10/- each at Issue Price of ₹50/- per share aggregating to ₹630.00 Lakhs
- Offer for Sale
- Nil
- Price Band
- Fixed Price Issue at ₹50/- per Equity Share
- Lot Size
- Not explicitly stated in this part
- Face Value
- ₹10/- per Equity Share
Business Model
The company operates through two revenue streams: (1) Trading of biofuels including biodiesel and light density oils, which accounted for 22.56% of revenue as of January 31, 2024; and (2) Job work for ethanol production in government-owned distilleries, which contributed 77.44% of revenue as of January 31, 2024. The company procures biofuels from suppliers and operates and maintains ethanol manufacturing units at government-owned distillery facilities under agreements with Rajasthan State Ganganagar Sugar Mills Ltd and Uttar Pradesh Cooperative Sugar Federation Limited.
Business Segments
SWOT Analysis
- • Recently diversified into ethanol manufacturing as job worker with established agreements(p.26)
- • Engaged in trading of biofuels with growing market tailwinds in renewable energy sector(p.18)
- • India's strong policy support for renewable energy and petroleum sector expansion(p.18)
- • Existing client relationships and repeat business(p.97)
- • Experienced promoter and management team(p.97)
- • Scalable, order-driven business model(p.97)
- • Quality assurance and standards adherence(p.98)
- • Eco-friendly products aligned with sustainability(p.97)
- • Timely fulfillment of orders(p.97)
- • Established presence in biofuel sector with recognized expertise(p.170)
- • Experienced promoter and management team with decade-long industry tenure(p.171)
- • Strong customer relationships and market positioning in Purvanchal region(p.170)
- • Dual operational capability in trading and job-work manufacturing(p.170)
- • Negative operating cash flows in all prior periods(p.24)
- • Recent company incorporation with incomplete regulatory transition and compliance obligations(p.25)
- • Highly concentrated customer base with top ten customers representing 100% of revenues(p.25)
- • Substantial outstanding indebtedness requiring significant cash flows to service(p.26)
- • No insurance coverage for registered office and key personnel(p.30)
- • Unsecured loans from directors and NBFCs that can be recalled at any time(p.34)
- • Outstanding tax litigations with 5 matters involving ₹288.65 lakhs(p.20)
- • Heavy dependence on two promoters with first-generation entrepreneurship experience(p.34)
- • Heavy dependence on suppliers for raw materials(p.103)
- • High working capital requirement(p.103)
- • Company lacks owned manufacturing capacity(p.105)
- • Limited operations to two geographic regions(p.106)
- • High debt-to-equity ratio indicating significant financial leverage(p.164)
- • Concentration of ownership and control among two promoters(p.133)
- • Promoters have provided personal guarantees on significant borrowings(p.125)
- • Limited operational scale without owned manufacturing facilities(p.170)
- • Minimal cash reserves relative to liabilities(p.143)
- • High dependence on few customers(p.178)
- • Significant finance costs relative to revenue(p.173)
- • High debt-to-equity ratio pre-issue(p.179)
- • Multiple pending GST and tax litigations(p.181)
- • Outstanding TDS defaults across multiple fiscal years(p.181)
- • Group company GST litigations with significant exposure(p.183)
- • India's growing energy demand and position as third-largest oil consumer globally(p.18)
- • Expansion opportunity for ethanol manufacturing job work business(p.25)
- • Large planned refining infrastructure expansion attracting significant foreign investment(p.18)
- • Transition from trading to higher-margin manufacturing operations(p.24)
- • Government thrust for biofuel development and E20 blending target(p.91)
- • Expanding into new geographical areas(p.103)
- • Growth in India's ethanol market at high CAGR(p.93)
- • India, Brazil and Indonesia expected to account for two-thirds of biofuel demand growth(p.93)
- • Government opportunity: setting up 5,000 CBG plants by 2023(p.91)
- • Leveraging marketing skills to increase customer base(p.98)
- • Government support and market demand for biofuels sector(p.111)
- • Expansion opportunity through UP state bioenergy incentives(p.112)
- • Regulatory framework supporting biodiesel market expansion(p.170)
- • Potential to expand geographical operations beyond current region(p.171)
- • Shift to higher-margin ethanol manufacturing business(p.176)
- • Government distillery partnerships for ethanol production(p.176)
- • Geographic expansion of trading business achieved(p.176)
- • Improved profit margins in current operations(p.176)
- • Supply interruption risk and price volatility in biofuel sourcing(p.23)
- • Customer resistance to switching from conventional fossil fuels to biofuels(p.24)
- • Seasonality of ethanol manufacturing business affecting revenue predictability(p.25)
- • Dependence on supplier concentration with top ten suppliers representing 100% of purchases(p.25)
- • Risk of termination of ethanol manufacturing agreements with state-owned entities(p.26)
- • Regulatory and policy changes affecting tax incentives and subsidies(p.34)
- • Dependence on leased property with termination risk(p.30)
- • Broad macroeconomic sensitivity to Indian economic conditions and global markets(p.30)
- • Natural disasters and security risks in India affecting operations(p.37)
- • Increased competition from larger organized players(p.103)
- • Low entry barriers enabling new competitors(p.103)
- • Change in government policies affecting business(p.103)
- • Rising labour wages(p.103)
- • Fluctuation in raw material prices(p.103)
- • Dependency on government tenders for ethanol job-work operations(p.170)
- • Exposure to regulatory changes in petroleum and biofuel sectors(p.171)
- • Vulnerability to petroleum product price fluctuations(p.171)
- • Competition from established players in biofuel and petroleum trading(p.170)
- • Dependence on infrastructure availability in operating regions(p.171)
- • Exposure to natural disasters and supply chain disruptions(p.171)
- • Seasonal disruption in ethanol manufacturing(p.178)
- • Significant revenue volatility from business transition(p.174)
- • Dependence on government-owned distillery operations(p.176)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Naved Iqbal | Promoter | 48.20% | 35.28% |
| Mr. Mohammad Nadeem | Promoter | 48.20% | 35.28% |
| Mr. Naved Iqbal | Promoter & Managing Director | 48.20% | 35.28% |
| Mr. Mohammad Nadeem | Promoter & Whole-Time Director | 48.20% | 35.28% |
| Mr. Naved Iqbal | Promoter | 48.20% | — |
| Mr. Mohammad Nadeem | Promoter | 48.20% | — |
| Not disclosed in this document section | Promoter details not provided in pages 173-226 | — | — |
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.