Hi-Green Carbon
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 21 Sep 2023 – 25 Sep 2023
- Listing date
- 28 Sep 2023
- Face value
- ₹10 per share
- Issue price
- ₹75 per share
- Lot size
- 1,600 shares
- Issue type
- Book Building issue
- Total issue size
- ₹52.80 Cr
- Market cap at offer price
- ₹187 Cr
- Promoter holding
- 100.00% → 71.83% pre-issue → post-issue
- ISIN
- INE0PIC01017
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Beeline Capital Advisors Pvt.Ltd.
- Registered office
- G-557, Lodhika Industrial Estate, Metoda G.I.D.C.Gate No.3, Metoda, Lodhika, 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 |
|---|---|---|---|
| Anchor investor · within QIB | 19,84,000 | — | — |
| Market maker | 4,20,800 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹75
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,20,000 |
| S-HNI (min) | 2 | 3,200 | ₹2,40,000 |
| S-HNI (max) | 8 | 12,800 | ₹9,60,000 |
| B-HNI (min) | 9 | 14,400 | ₹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.
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 (₹) | 5.71 | — |
| P/E (×) | 13.13 | — |
| Market cap | — | ₹187 Cr |
Key performance indicators
- Return on net worth
- 48.02%
- ROCE
- 64.70%
- Debt / equity
- 0.60
- PAT margin
- 13.81%
- NAV per share
- ₹11.89
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Hi-Green Carbon
Hi-Green Carbon Limited, incorporated on August 29, 2011, and headquartered in Rajkot, Gujarat, is part of Radhe Group Energy. The company was established with a mission to create wealth from waste by recycling end-of-life tyres (ELTs). The company operates a manufacturing plant in Rajasthan using continuous pyrolysis technology controlled by Supervisory Control and Data Acquisition (SCADA) systems. The process is fully automatic with minimal human intervention. The company's major products include Recovered Carbon Black (rCB) and Steel Wires under Raw Material Category, Fuel Oil and Synthesis Gas under Energy Components Category. The company also manufactures sodium silicate (raw glass) utilizing synthesis gas produced as a by-product of the pyrolysis process. The company has capacity to recycle 100 MT waste tyres per day and produce 60 MT sodium silicates per day. The company is certified with ISO 14001:2015 (Environmental Management), ISO 45001:2018 (Occupational Health & Safety), ISO 9001:2015 (Quality Management), GMP, and RoHS compliance.
Company Analysis
from RHPHi-Green Carbon Limited is a waste tyres recycling company engaged in processing end-of-life tyres through continuous pyrolysis to produce recovered carbon black, steel wires, fuel oil, and sodium silicate.
Hi-Green Carbon Limited, incorporated on August 29, 2011, and headquartered in Rajkot, Gujarat, is part of Radhe Group Energy. The company was established with a mission to create wealth from waste by recycling end-of-life tyres (ELTs). The company operates a manufacturing plant in Rajasthan using continuous pyrolysis technology controlled by Supervisory Control and Data Acquisition (SCADA) systems. The process is fully automatic with minimal human intervention. The company's major products include Recovered Carbon Black (rCB) and Steel Wires under Raw Material Category, Fuel Oil and Synthesis Gas under Energy Components Category. The company also manufactures sodium silicate (raw glass) utilizing synthesis gas produced as a by-product of the pyrolysis process. The company has capacity to recycle 100 MT waste tyres per day and produce 60 MT sodium silicates per day. The company is certified with ISO 14001:2015 (Environmental Management), ISO 45001:2018 (Occupational Health & Safety), ISO 9001:2015 (Quality Management), GMP, and RoHS compliance.
Objects of the Issue
- Setting up of New Manufacturing Unit at Maharashtra ₹1,783.13 Lakhs p.22
- To Meet Working Capital Requirements ₹1,653.93 Lakhs p.22
- General Corporate Purpose p.22
- Setting up of new Manufacturing Unit at Maharashtra ₹ 1,783.13 Lakhs p.79
- To Meet Working Capital Requirements ₹ 1,653.90 Lakhs p.79
- General Corporate Purpose [●] p.79
- To meet Public Issue Expenses [●] p.79
- Funding capex for the new plant in Maharashtra ₹1,400.00 Lakhs (sanction letter for machinery purchase cost of ₹2,000.00 Lakhs) p.213
Issue Structure
- Total Issue
- 7040000 Equity Shares aggregating to ₹ [●] Lakhs
- Fresh Issue
- 5990000 Equity Shares aggregating to ₹ [●] Lakhs
- Offer for Sale
- 1050000 Equity Shares by M/s RNG Finlease Private Limited aggregating to ₹ [●] Lakhs
- Lot Size
- [●] Equity Shares
- Face Value
- ₹ 10/- each
Business Model
The company generates revenue by recycling end-of-life tyres through continuous pyrolysis process and selling the resulting products: Recovered Carbon Black (rCB), Steel Wires, Fuel Oil, Synthesis Gas, and Sodium Silicate. The company operates on a purchase order basis without long-term customer agreements. Revenue from operations for FY 2022-23 was ₹7,852.41 lakhs with profit after tax of ₹1,084.78 lakhs.
Business Segments
SWOT Analysis
- • Established waste tyre recycling business with modern SCADA-controlled integrated plant(p.20)
- • ISO-certified operations with high EHS standards and REACH compliance(p.20)
- • Existing manufacturing facility with 100 MT daily waste tyre processing capacity(p.20)
- • Revenue growth trajectory with PAT increasing from ₹9.59 Lakhs (FY2021) to ₹1084.78 Lakhs (FY2023)(p.23)
- • Experienced and qualified promoter management team(p.93)
- • Strategic geographic location of manufacturing facilities(p.93)
- • Proprietary continuous pyrolysis technology with automatic process control(p.79)
- • Diversified product portfolio capturing both energy and material value(p.79)
- • Strong revenue and profitability growth trajectory(p.95)
- • Experienced management with decades of industry expertise(p.116)
- • Strategic manufacturing location with excellent infrastructure and market access(p.116)
- • Automatic continuous pyrolysis process requiring minimal human intervention(p.116)
- • Multiple ISO certifications and international compliance standards(p.116)
- • Strong revenue growth and improving profitability metrics(p.114)
- • Wide range of products from waste tyre recycling with diverse applications(p.113)
- • State-of-the-art integrated recycling facility with SCADA operation and multiple ISO certifications(p.212)
- • Strong revenue growth trajectory with 53.65% YoY growth in FY2023(p.214)
- • Significant EBITDA margin expansion to 25.39% in FY2023(p.212)
- • Positive net worth of ₹2,259.02 lakhs as at March 31, 2023 with improving trajectory(p.201)
- • Diversified product portfolio reducing revenue concentration risk(p.215)
- • Strong Return on Equity of 63.19% in FY2023(p.201)
- • High customer concentration with top 10 customers representing 63.87% of FY2023 sales(p.30)
- • Heavy dependence on few suppliers with top 10 suppliers representing 96.88% of FY2023 purchases(p.31)
- • No long-term supply or purchase agreements with customers and suppliers(p.31)
- • Geographic concentration with 79.73% of domestic revenue from Rajasthan(p.30)
- • Registered office is leased, not owned; lease of only 11 months with uncertain continuation(p.29)
- • Outstanding litigation against company with financial implication of ₹10,44,64,205 across 3 matters(p.24)
- • Unsecured loans of ₹264.45 Lakhs repayable on demand from directors and promoters(p.34)
- • Past non-compliance with Companies Act provisions regarding whole-time company secretary appointment(p.34)
- • High customer concentration risk with top customer representing significant revenue(p.96)
- • Significant dependence on raw material sourcing—end-of-life tyres(p.79)
- • New manufacturing facility at expansion stage with execution risks(p.79)
- • Modest scale compared to mature competitors with limited operating history(p.102)
- • High concentration of revenue among top customers creating dependency risk(p.115)
- • Significant outstanding debt obligations with short-term borrowing needs(p.125)
- • Minimal cash position despite strong operations(p.169)
- • Qualification in audit reports regarding MSME interest non-compliance(p.165)
- • Significant concentration with top 5 customers contributing 48.71% of FY2023 revenue(p.212)
- • Heavy dependence on top 10 suppliers contributing 96.88% of purchases in FY2023(p.218)
- • Outstanding tax demands from Income Tax Department including major AY 2013-14 reassessment(p.220)
- • Unfunded gratuity liability with non-current provisions of ₹14.81 lakhs(p.188)
- • Allegations of fictitious loan transactions from RNG Finlease Private Limited(p.221)
- • Expansion of manufacturing capacity with planned new facility at Dhule, Maharashtra with 100 MT daily capacity(p.20)
- • Diversification into value-added products through sodium silicate manufacturing from synthesis gas byproduct(p.20)
- • Strong Indian economic growth trajectory with India projected as fastest-growing major economy at 6.5-7.0% in FY23(p.21)
- • Access to international markets with exports to Sri Lanka, Qatar and Thailand(p.35)
- • Alignment with India's aggressive renewable energy and circular economy targets(p.112)
- • Government incentives and PLI schemes supporting domestic manufacturing(p.112)
- • Increasing demand for sustainable waste management and end-of-life tyre recycling(p.93)
- • Strong domestic consumption recovery and manufacturing capacity utilization(p.110)
- • Potential for scale and margin expansion through new facility deployment(p.86)
- • Expansion to new manufacturing facility in Maharashtra(p.113)
- • Growing demand for recovered carbon black across multiple end-use industries(p.117)
- • Ready market for fuel oil from nearby industrial manufacturing facilities(p.116)
- • Potential value addition through further processing of recovered carbon black(p.117)
- • International export market development(p.115)
- • Expansion into Maharashtra with sanctioned ₹1,400 crore bank loan for new machinery(p.213)
- • Growing waste tire recycling industry with capacity utilization increasing from 10,558 MT to 16,558 MT annually(p.212)
- • Export market expansion with international customers in Sri Lanka and other markets(p.215)
- • Value-added product development with sodium silicate production from waste heat(p.212)
- • Incorporation of wholly-owned subsidiary Shantol Recycling Private Limited for potential business expansion(p.213)
- • Raw material price fluctuations and dependency on spot market procurement without long-term contracts(p.31)
- • Payment delays and credit risks from customers with no advance payments or security deposits(p.32)
- • Industrial accident and fire hazard risks from rubber combustibility and machinery operations(p.33)
- • Foreign exchange fluctuation exposure from international revenue in unhedged foreign currencies(p.35)
- • Regulatory compliance risks in safety, health, environmental protection and statutory approvals(p.34)
- • Interest rate fluctuation risks affecting cost of future borrowings and financial condition(p.35)
- • COVID-19 pandemic and future public health emergencies could disrupt operations and supply chain(p.38)
- • Machinery price escalation risk with 84.95% of machinery cost yet to be ordered(p.30)
- • Commodity price volatility affecting input costs and product pricing(p.103)
- • Global economic slowdown and recession risks impacting demand(p.103)
- • Rising interest rates and monetary tightening reducing credit availability(p.103)
- • Regulatory and environmental compliance requirements for waste processing(p.79)
- • Competition from established players and new market entrants(p.80)
- • Fluctuation in finished product prices impacting margins(p.121)
- • Changes in government policies affecting waste management and recycling sector(p.121)
- • Operating in highly competitive market with numerous unorganized players(p.122)
- • Dependence on availability and supply of raw material (end-of-life tyres)(p.122)
- • Regulatory compliance requirements including environmental and labor laws(p.134)
- • Competition from existing and potential competitors in waste recycling sector(p.218)
- • Dependence on fluctuating commodity prices and raw material costs(p.213)
- • Environmental regulations and pollution control compliance requirements(p.212)
- • Regulatory and taxation challenges with pending income tax appeals(p.221)
- • Exposure to natural calamities and external economic shocks(p.213)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| M/s RNG FINLEASE PRIVATE LIMITED | Promoter | 71.58% | 50.22% |
| Mr. Amitkumar Hasmukhrai Bhalodi | Promoter | 5.79% | 4.40% |
| Dr. Shaileshkumar Vallabhdas Makadia | Promoter | 5.79% | 4.40% |
| Mrs. Krupa Chetankumar Dethariya | Promoter | 5.79% | 4.40% |
| Mrs. Radhika Amitkumar Bhalodi | Promoter | 3.68% | 2.80% |
| Mrs. Shriyakumari Shaileshkumar Makadia | Promoter | 3.68% | 2.80% |
| Mr. Koosh Chetanbhai Dethariya | Promoter | 3.68% | 2.80% |
| Mr. Amitkumar Hasmukhrai Bhalodi | Promoter | 5.79% | 4.40% |
| M/s RNG Finlease Private Limited | Promoter | 71.58% | 50.22% |
| Dr. Shaileshkumar Vallabhdas Makadia | Promoter | 5.79% | 4.40% |
| Mrs. Krupa Chetankumar Dethariya | Promoter | 5.79% | 4.40% |
| Mrs. Radhika Amitkumar Bhalodi | Promoter | 3.68% | 2.80% |
| Mrs. Shriyakumari Shaileshkumar Makadia | Promoter | 3.68% | 2.80% |
| Mr. Koosh Chetan Dethariya | Promoter | 3.68% | 2.80% |
| M/s. RNG Finlease Private Limited | Corporate Promoter | 71.58% | — |
| Mr. Amitkumar Hasmukhrai Bhalodi | Promoter | 33.01% | — |
| Dr. Shaileshkumar Vallabhdas Makadia | Promoter | — | — |
| Mrs. Krupa Chetakumar Dethariya | Promoter | — | — |
| Mrs. Radhika Amirkumar Bhalodi | Promoter | — | — |
| Mrs. Shiryakumari Shaileshkumar Makadia | Promoter | — | — |
| Mr. Koosh Chetankumar Dethariya | Promoter | — | — |
| RNG Finlease Private Limited | Promoter/Holding Company | 71.58% | — |
| Amitkumar Hasmukhrai Bhalodi | Promoter | 5.79% | — |
| Krupa Chetakumar Dethariya | Promoter | 13.22% | — |
| Shailesh Vallabhdas Makadia | Promoter | 5.79% | — |
| Rupa Chetakumar Jariwala | Promoter | 3.53% | — |
| Mayur Gajera | Promoter | 4.60% | — |
| Kush Chetankumar Dethariya | Promoter | 3.68% | — |
| Radhika Amirkumar Bhalodi | Promoter | 3.68% | — |
| Shriyakumari Shaileshkumar Makadia | Promoter | 3.68% | — |
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.