Nupur Recyclers SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 13 Dec 2021 – 15 Dec 2021
- Listing date
- 23 Dec 2021
- Face value
- ₹10 per share
- Issue price
- ₹60 per share
- Lot size
- 2,000 shares
- Total issue size
- ₹34.20 Cr
- Market cap at offer price
- ₹125 Cr
- Promoter holding
- 99.90% → 72.52% pre-issue → post-issue
- ISIN
- INE0JM501013
- Registrar
- Skyline Financial Services Pvt.Ltd.
- Lead managers
- Corporate Capitalventures Pvt.Ltd.
- Registered office
- Plot No.5, G/F, Kh No.12/8 & 12/9 Kh-12, Arjun Gali, New Mandoli Industrial Area, New Delhi
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 | 3,00,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹60
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,20,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,40,000 |
| S-HNI (max) | 8 | 16,000 | ₹9,60,000 |
| B-HNI (min) | 9 | 18,000 | ₹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
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹125 Cr |
About Nupur Recyclers SME
Nupur Recyclers Limited was incorporated on January 22, 2019 as a private limited company and converted to a public limited company on October 6, 2021. The Company was incorporated in 2019 into the business of metal recycling. Its promoters have diversified experience of more than 30 years in the field of trading of non-ferrous metal scrap. The Company imports mixed scrap metals from countries such as Canada, Cyprus, Europe, UAE and UK, transfers them to its warehouse, segregates them for further processing, and sells them in the Indian domestic market. The business is labour-intensive, relying on daily wage labour for segregation of imported scrap. The Company earns revenue through the sale of recycled and traded scrap metals.
Company Analysis
from RHPNupur Recyclers Limited is a metal recycling and trading company that imports scrap metals from overseas and sells them in the Indian domestic market.
Nupur Recyclers Limited was incorporated on January 22, 2019 as a private limited company and converted to a public limited company on October 6, 2021. The Company was incorporated in 2019 into the business of metal recycling. Its promoters have diversified experience of more than 30 years in the field of trading of non-ferrous metal scrap. The Company imports mixed scrap metals from countries such as Canada, Cyprus, Europe, UAE and UK, transfers them to its warehouse, segregates them for further processing, and sells them in the Indian domestic market. The business is labour-intensive, relying on daily wage labour for segregation of imported scrap. The Company earns revenue through the sale of recycled and traded scrap metals.
Objects of the Issue
- Working Capital Requirement Rs. 2600.00 Lakh p.16
- General Corporate Purposes Rs. 649.00 Lakh p.16
- Issue Expenses Rs. 171.00 Lakh p.16
- Working Capital Requirement ₹2,600.00 lakh p.66
- General Corporate Purposes ₹649.00 lakh p.66
- Issue Expenses ₹171.00 lakh p.66
Issue Structure
- Total Issue
- Rs. 3420.00 Lakh
- Fresh Issue
- 57,00,000 Equity Shares of face value of Rs.10/- each at a price of Rs. 60/- per Equity Share aggregating Rs. 3420.00 Lakh
- Price Band
- Rs. 60/- per Equity Share (Fixed Price)
- Face Value
- Rs. 10/- per Equity Share
Business Model
The Company imports scrap metals from overseas markets and sells them in the Indian domestic market. It procures or imports stock from different countries and sells it to vendors and customers in India. The Company does not have its own manufacturing facilities or production lines.
Business Segments
SWOT Analysis
- • Promoters have 30+ years of diversified experience in non-ferrous metal scrap trading(p.15)
- • Strong revenue growth with FY2021 revenue of Rs. 10,497 lakhs vs FY2020 revenue of Rs. 1,321 lakhs(p.16)
- • Profitability improvement with FY2021 PAT of Rs. 1,000.52 lakhs vs FY2020 PAT of Rs. 3.28 lakhs(p.16)
- • Promoter experience spanning over three decades in non-ferrous metal scrap trading(p.91)
- • B2B business model with established customer base in manufacturing and engineering sectors(p.91)
- • Positive cash flow and strong financial performance(p.102)
- • Experienced and professional management team(p.102)
- • Excellent network management and logistics capabilities(p.102)
- • Good track record in business operations(p.102)
- • Established presence in metal recycling with over 30 years of promoter experience(p.173)
- • Strong revenue growth trajectory and profitability improvement(p.177)
- • Significant improvement in net profit margins(p.178)
- • Solid balance sheet with positive net worth(p.192)
- • PAN India distribution network for metal sales(p.173)
- • High customer concentration with top 10 customers contributing 70.10% of revenues(p.20)
- • Heavy geographic concentration with Delhi & Haryana contributing over 80% of revenues(p.22)
- • Non-compliance with Stamp Act provisions including non-payment of consolidated stamp duty(p.20)
- • Registered office premises held on short-term lease expiring January 28, 2022(p.21)
- • Negative operating cash flow in recent quarter with cash burn of Rs. 303.64 lakhs(p.21)
- • No insurance coverage for assets, stock, or transport operations(p.23)
- • High debt with unsecured loans of Rs. 459.71 lakhs repayable on demand(p.23)
- • Very limited operating history of less than 2 years(p.24)
- • Limited geographic presence in southern and northeastern regions of India(p.102)
- • Market operating under cyclical downturn due to pandemic impact(p.102)
- • Constrained financial resources relative to operational needs(p.102)
- • Heavy dependence on imports for metal scrap supply(p.90)
- • Significant dependence on a small customer base(p.180)
- • High leverage with substantial borrowings(p.181)
- • High finance costs reflecting debt burden(p.177)
- • Recent incorporation with limited operational history(p.173)
- • Related party lending dependence(p.160)
- • Growing global metal recycling market driven by Asia-Pacific's fastest growth and urbanization(p.15)
- • Large untapped market with material recycling rates in India below global standards and mostly informal(p.15)
- • Government policy support through National Mineral Policy 2019 for metal recovery through recycling(p.15)
- • Capital infusion of Rs. 2,600 lakhs for working capital to support business expansion(p.16)
- • Expected recovery in market sentiment and economic conditions(p.102)
- • Government initiatives promoting recycling and material efficiency(p.102)
- • Increasing demand from Make in India and infrastructure development programs(p.102)
- • Global metal recycling market projected to grow at 7.8% CAGR through 2025(p.83)
- • Asia Pacific expected to be fastest-growing regional market for metal recycling(p.84)
- • India's growing demand for non-ferrous metals outpacing domestic production(p.88)
- • Significant employment generation potential in recycling sector(p.90)
- • Expansion of ferrous and non-ferrous metal recycling business(p.173)
- • Potential for migration to NSE main board upon meeting capital and profitability criteria(p.205)
- • Growth in domestic metal demand and scrap recycling market(p.180)
- • Expansion through merger and acquisition opportunities(p.206)
- • International sourcing capabilities for global metal imports(p.169)
- • Highly competitive fragmented market with low barriers to entry(p.27)
- • Raw material price volatility with inability to hedge between procurement and selling(p.33)
- • Foreign exchange risk with 97% of purchases in FY2021 from overseas imports(p.23)
- • Dependence on third-party suppliers with no long-term agreements(p.23)
- • Labor-intensive operations vulnerable to strikes and wage demands(p.23)
- • Regulatory and compliance risks including environmental laws and import/export controls(p.22)
- • Economic slowdown and capital gains tax changes could adversely impact Indian economy and demand(p.36)
- • COVID-19 pandemic disruption to global trade and imports(p.102)
- • High level of competition in fragmented market with many small and medium players(p.102)
- • Regulatory policy changes affecting business operations(p.102)
- • Global economic uncertainty and uneven recovery post-pandemic(p.77)
- • Rising global inflation affecting input costs and operating expenses(p.76)
- • Material recycling in India heavily dependent on informal sector creating competition(p.90)
- • Volatility in global metal prices and commodity markets(p.174)
- • Changes in regulatory framework affecting metals trading and import-export(p.174)
- • Currency fluctuation risk from international sourcing(p.169)
- • Competition from established industry players(p.180)
- • Risk of failure to adapt to industry changes(p.174)
- • Potential conflicts of interest with related party entities(p.144)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Rajesh Gupta | Promoter | 50.00% | 36.30% |
| Anoop Garg | Promoter | 49.75% | 36.13% |
| Rajesh Gupta | Promoter | 50.00% | — |
| Anoop Garg | Promoter | — | — |
| Rajesh Gupta | Promoter | 50.00% | — |
| Anoop Garg | Promoter | 50.00% | — |
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.