Organic Recycling Systems
Fixed Price issueSME₹50 Cr issue
+7.50%
Listing gain over issue price
Issue size
₹50 Cr
1 lot at cut-off
₹1,20,000
Lot size
600shares
Open
21 Sep 2023
Close
26 Sep 2023
Allotment
29 Sep 2023
Listing
06 Oct 2023
Listing performance
Issue price
₹200
Listed at
₹215
Listing-day close
₹225.75
Latest price
₹201.15
Close on 23 Oct 2026
Listing gain
+7.50%
Return since issue
+0.57%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 21 Sep 2023 – 26 Sep 2023
- Listing date
- 06 Oct 2023
- Face value
- ₹10 per share
- Issue price
- ₹200 per share
- Lot size
- 600 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹50 Cr
- Market cap at offer price
- ₹154 Cr
- Promoter holding
- 30.14% → 20.35% pre-issue → post-issue
- ISIN
- INE0MIO01019
- Registrar
- Maashitla Securities Pvt.Ltd.
- Lead managers
- Arihant Capital Markets Ltd.
- Registered office
- Office No.1003, 10th Floor, The Affaires Plot No.9, Sector-17, Sanpada, 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 |
|---|---|---|---|
| Market maker | 1,30,200 | — | — |
Application size
Minimum 600 shares per lot, in multiples, at ₹200
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 600 | ₹1,20,000 |
| S-HNI (min) | 2 | 1,200 | ₹2,40,000 |
| S-HNI (max) | 8 | 4,800 | ₹9,60,000 |
| B-HNI (min) | 9 | 5,400 | ₹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.
Valuation and performance
Valuation at offer price
₹200 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 7.83 | — |
| P/E (×) | 25.54 | — |
| Market cap | — | ₹154 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 14.33%
- ROCE
- 13.06%
- Debt / equity
- 2.70
- PAT margin
- 14.78%
- NAV per share
- ₹49.05
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Organic Recycling Systems
Organic Recycling Systems Limited, incorporated in 2008 as a private company and converted to public in 2022, is engaged in sustainable waste management solutions with operations across the waste management value chain. The company has been providing robust, cost-effective, and environment-friendly waste management technologies since 2008. Incorporated by technocrats, the company's focus is on developing simple-to-operate solutions for waste processing and disposal. The company's major revenue-generating operations include its subsidiary Solapur Bio-Energy Systems Pvt. Ltd., which operates a waste-to-energy project in Solapur under a concession agreement with Solapur Municipal Corporation.
Company Analysis
from RHPOrganic Recycling Systems Limited is an Indian waste management company providing sustainable solutions across municipal solid waste collection, processing, treatment, and disposal.
Organic Recycling Systems Limited, incorporated in 2008 as a private company and converted to public in 2022, is engaged in sustainable waste management solutions with operations across the waste management value chain. The company has been providing robust, cost-effective, and environment-friendly waste management technologies since 2008. Incorporated by technocrats, the company's focus is on developing simple-to-operate solutions for waste processing and disposal. The company's major revenue-generating operations include its subsidiary Solapur Bio-Energy Systems Pvt. Ltd., which operates a waste-to-energy project in Solapur under a concession agreement with Solapur Municipal Corporation.
Waste ManagementMunicipal Solid Waste (MSW) ManagementEnvironmental ServicesWaste Processing and DisposalWaste-to-Energy
Objects of the Issue
- Repayment of Debt ₹3,750.40 lakhs p.16
- General Corporate Purpose ₹1,048.00 lakhs p.16
- Issue Expenses ₹202.00 lakhs p.16
- Reduction of the aggregate outstanding borrowings of our Company ₹3,750.40 lakhs (75.00% of gross proceeds) p.62
- General Corporate Purpose ₹1,048.00 lakhs (20.96% of gross proceeds) p.62
- The document does not contain a specific 'Objects of the Offer' section detailing the uses of IPO proceeds.
Issue Structure
- Total Issue
- ₹5,000.40 Lakh
- Fresh Issue
- ₹5,000.40 Lakh (25,00,200 equity shares of Rs. 10/- each at Rs. 200/- per share)
- Price Band
- ₹200 per equity share
- Lot Size
- As per SEBI regulations for SME Platform
- Face Value
- ₹10 per equity share
Business Model
The company earns revenue primarily through municipal contracts for waste collection, aggregation, treatment, and disposal services. Revenue is generated from processing and disposal contracts awarded by municipal authorities such as Solapur Municipal Corporation and Kalyan Dombivali Municipal Corporation, typically through competitive bidding processes. The company operates under fixed-rate contracts with some containing price escalation clauses for materials, labour, and fuel costs.
Business Segments
Major revenue generating subsidiary operating a waste-to-energy project for Solapur Municipal Corporation under concession agreement, engaged in waste processing and disposal
Associate company for developing the Pallakad waste management project through consortium arrangement with Blue Planet Environmental Solutions India Private Limited
Develops projects with Urban Local Bodies (ULBs) on BOOT basis and Public Private Partnership (PPP) model; provides technological support and equity participation; focuses on conversion of MSW into power, Compressed Biogas (CBG), and compost with EPC margins of 15%-18%, operation and management fees, and dividend income from equity shares.
Designs and supplies key equipment required to set up MSW projects with plans to augment offering by acquiring exclusive marketing rights and manufacturing rights for other MSW processing equipment.
Intended to offer technical and financial advisory services to businesses in waste management sector; provides engineering services, feasibility studies, R&D activities, and contract research services leveraging data collected over ten years and proprietary technology.
Operates a 400 TPD Waste to Energy facility processing organic fraction of MSW using DRYAD™ technology to generate electricity (3 MW capacity), compost (60 TPD capacity), and planned CBG production (3.5 tons/day capacity). Electricity sold under Power Purchase Agreement with MSEDCL; compost sold to fertilizer companies and farmers.
The company constructs, develops and maintains Municipal Solid Waste to Energy projects through special purpose vehicles (SPVs) under concession agreements with municipal corporations. These projects convert organic fraction of municipal solid waste into electricity and compost using proprietary DRYAD™ and DRYCO-AD™ technologies based on anaerobic digestion process.
The company provides EPC services for waste-to-energy projects, where it designs, manufactures, installs, commissions and markets waste management equipment and systems. The company is paid on completion of milestones for these contracts.
Engineering Procurement and Commissioning services for waste-to-energy and MSW processing facilities
Operation and maintenance of waste processing facilities
Consultancy fees for waste management solutions
Sale of compost and electricity from the Solapur MSW processing facility
Licensing of proprietary waste-to-energy and waste processing technology
SWOT Analysis
Strengths
- • Over 15 years of operational history in waste management sector(p.16)
- • Established patent portfolio for core waste processing technology(p.26)
- • Profitable operations with return to profitability in FY2023(p.25)
- • Strong revenue growth trajectory(p.32)
- • Recognized trademark portfolio with extended protection(p.26)
- • Patented waste-to-energy technology with proven operational track record(p.90)
- • Long-operating flagship Solapur facility recognized as best practice by Government(p.96)
- • Multiple revenue streams from single waste processing facility(p.100)
- • Experienced promoter and management team with 100+ years combined waste sector experience(p.93)
- • Patented proprietary technology (DRYAD) with demonstrated capability to process diverse waste streams(p.107)
- • Penetration across multiple business verticals (BOOT, EPC, product, consulting)(p.90)
- • India's first MSW-to-energy plant using proprietary DRYAD™ technology(p.117)
- • Solapur plant recognized as best practice by Government of India(p.117)
- • 15+ years sector experience and technology leadership(p.117)
- • Patent protection for waste treatment technology(p.120)
- • Multiple successful project implementations across India(p.120)
- • 14+ years of operational experience in waste-to-energy sector(p.217)
- • Proven proprietary anaerobic biomethanation technology recognized by Government of India(p.217)
- • Operational waste-to-energy plant recognized as best practice under Swachh Bharat Mission(p.217)
- • Diversified service offerings across waste management value chain (BOOT, EPC, equipment supply)(p.217)
- • Turnaround to profitability in FY2023 with Rs. 365.38 lakhs net profit(p.220)
- • Recent patent grant for integrated waste pre-treatment and anaerobic digestion process(p.218)
- • Strong 69% year-on-year revenue growth in FY2023(p.220)
Weaknesses
- • High contingent liabilities exposure from regulatory and tax matters(p.27)
- • Past history of losses and negative operating cash flows(p.25)
- • Significant levels of debt with previous payment defaults(p.25)
- • Ongoing investigations by regulatory authorities involving promoters(p.24)
- • High working capital requirements and cash flow challenges(p.28)
- • Concentration of revenue from limited customer base(p.26)
- • Multiple outstanding litigations involving company, subsidiaries and promoters(p.22)
- • Significant dependence on few major customers and contracts(p.100)
- • Delhi projects terminated and company in litigation for outstanding dues(p.104)
- • Solapur plant operating at only 50% of installed capacity(p.106)
- • Reliance on land lease arrangement with expiration timeline(p.97)
- • Loss-making performance in recent years prior to FY 2023(p.70)
- • Pending litigation risk related to Meerut project(p.104)
- • Significant accumulated losses and negative net worth in group entities(p.143)
- • Heavy dependence on single large customer (Municipal Corporation of Delhi)(p.190)
- • History of defaults in loan compliance(p.124)
- • Significant overdue trade receivables(p.190)
- • Project delays due to municipal authority delays in land acquisition and approvals(p.125)
- • Preference share redemption obligation(p.125)
- • Significant contingent tax liabilities including disputed income tax demands(p.223)
- • Heavy dependence on limited customer base - single largest customer represented Rs. 1,000 lakhs revenue in FY2023(p.193)
- • High financial leverage with debt-to-equity ratio of 2.74 pre-IPO(p.206)
- • Substantial accumulated losses from prior years requiring recovery(p.221)
- • Related party exposure with significant trade payables to Blue Planet Yasasu Solutions(p.203)
- • Ongoing regulatory inquiries by MCA and SFIO into historical WCV investment transactions(p.226)
- • Pending litigation with Kolkata Municipal Corporation regarding plant non-performance(p.228)
Opportunities
- • Government focus on solid waste management under Swachh Bharat Mission(p.23)
- • Expansion of geographical presence and customer base(p.30)
- • Moving up the waste management value chain(p.30)
- • Utilization of IPO proceeds for debt reduction and capacity enhancement(p.16)
- • Market consolidation opportunity in fragmented MSW sector(p.30)
- • Massive addressable market in Indian waste management with only 30% of recyclable waste currently processed(p.93)
- • Government support through multiple schemes including Swachh Bharat Mission 2.0 and SATAT(p.86)
- • Significant market potential in bio-CNG production under SATAT scheme(p.88)
- • Circular economy opportunities with estimated Rs. 11,836 crores annual potential in dry waste recycling alone(p.89)
- • Strategic partnerships with major players like White Organic Retail for agricultural waste management expansion(p.102)
- • Expansion opportunities across geographies (Kerala, West Bengal projects underway or under negotiation)(p.102)
- • Scaling technology across India's waste management sector(p.117)
- • EPC contract model for technology monetization(p.120)
- • Bio-CNG generation from organic waste(p.120)
- • Large-scale integrated waste management projects(p.120)
- • New product development pipeline(p.183)
- • Large waste management market in India due to demographics and consumption patterns(p.217)
- • MOU with White Organic Retail Limited for Rs. 600 lakhs technology fee and estimated Rs. 300 crores EPC contracts(p.219)
- • Exclusive EPC partnership for agricultural waste management across Punjab, Haryana, and Maharashtra(p.219)
- • Growing government focus on sustainable waste management under Swachh Bharat Mission(p.217)
- • Circular economy opportunity to recover maximum resources from waste(p.217)
- • Expansion opportunity across Asian, Middle Eastern, and African regions(p.217)
Threats
- • Heavy dependence on municipal authorities for business awards and payments(p.23)
- • Risk of delays and cost overruns due to government bureaucracy and PILs(p.23)
- • Fixed-price contracts with uncontrollable cost escalations(p.26)
- • Intense competition from larger and better-resourced competitors(p.30)
- • Macroeconomic headwinds and currency volatility affecting Indian economy(p.35)
- • Potential changes to tax laws and loss of tax benefits(p.36)
- • COVID-19 and other communicable disease outbreaks impact business operations(p.34)
- • Sector faces structural delay challenges in land allocation and project execution(p.103)
- • High dependence on municipal corporation contracts with payment default risk(p.104)
- • Exposure to regulatory changes in waste management rules and environmental standards(p.114)
- • Competitive landscape with many startups entering waste management sector(p.93)
- • Commodity price and energy tariff volatility affecting project returns(p.63)
- • Technology adoption lagging across Indian states with only 6 states having WTE plants(p.81)
- • Contract termination by key customer(p.190)
- • Project delays and cost overruns dependent on municipal authorities(p.125)
- • Regulatory and environmental approval delays(p.125)
- • Dependence on tariff fixation by regulatory authorities(p.120)
- • Regulatory delays and approvals affecting project timelines(p.220)
- • Dependence on government contracts and municipal corporation policies(p.221)
- • Competition from alternative waste management technologies(p.218)
- • Outstanding contingent liabilities from service tax demands(p.202)
- • Performance bank guarantee exposure of Rs. 181.79 lakhs(p.202)
- • Vulnerability to economic cycles and government policy changes(p.218)
- • Risk from failure to obtain timely approvals and licenses(p.218)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Sarang Bhand | Promoter | 30.14% | — |
| Sarang Bhand | Promoter | 30.14% | 20.35% |
| Sarang Bhand | Promoter | 30.14% | — |
| Sarang Bhand | Promoter | — | — |
Leadership
Sarang Bhand · Managing Director
Yashas Bhand · Whole time Director and CEO
Zinal Mukund Shah · Company Secretary & Compliance Officer
Jigar Gudka · Chief Financial 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.
Organic Recycling Systems IPO FAQs
What is the lot size of Organic Recycling Systems IPO?
The minimum lot size of Organic Recycling Systems IPO is 600 shares. One lot costs ₹1,20,000 at the cut-off price.
When does Organic Recycling Systems IPO open and close?
Organic Recycling Systems IPO opened for subscription on 21 Sep 2023 and closed on 26 Sep 2023.
What is the listing date of Organic Recycling Systems IPO?
Organic Recycling Systems IPO listed on 06 Oct 2023.