Resgen
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 28 Feb 2023 – 02 Mar 2023
- Listing date
- 13 Mar 2023
- Face value
- ₹10 per share
- Issue price
- ₹47 per share
- Lot size
- 3,000 shares
- Issue type
- Book Building issue
- Total issue size
- ₹28.20 Cr
- Market cap at offer price
- ₹98.58 Cr
- Promoter holding
- 94.15% → 67.22% pre-issue → post-issue
- ISIN
- INE0NYN01016
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Gretex Corporate Services Ltd.
- Registered office
- 919, Floor 9th, Plot-221, Maker Chamber., V.Jamnalal Bajaj Marg, Nariman Point, 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 | 16,92,000 | — | — |
| Market maker | 3,00,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹47
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,41,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,82,000 |
| S-HNI (max) | 7 | 21,000 | ₹9,87,000 |
| B-HNI (min) | 8 | 24,000 | ₹11,28,000 |
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 (₹) | 17.90 | — |
| P/E (×) | 2.63 | — |
| Market cap | — | ₹98.58 Cr |
Key performance indicators
- Return on net worth
- 20.00%
- ROCE
- 14.57%
- Debt / equity
- 2.54
- PAT margin
- 15.29%
- NAV per share
- ₹17.90
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Resgen
ResGen Limited, established in 2018 and headquartered in Mumbai, is engaged in manufacturing pyrolysis oil from waste and scrap plastics at its chemical recycling plant in Vikramgad, Palghar, Maharashtra. The company converts all kinds of plastics into combustible liquid fuel (pyrolysis oil as a substitute for furnace oil) and generates by-products including carbon (substitute for coal) and gas (substitute for LPG). This eco-friendly process addresses the environmental hazard of plastic waste while creating commercially viable fuel alternatives. The company started commercial operations in FY 2021-2022 after two years of research and development. Revenue is generated from the sale of pyrolysis oil and by-products to customers in the renewable energy and industrial sectors.
Company Analysis
from RHPResGen Limited manufactures pyrolysis oil (substitute for furnace oil) and by-products (carbon and gas) from waste plastics through chemical recycling, operating in the renewable energy and waste management industries.
ResGen Limited, established in 2018 and headquartered in Mumbai, is engaged in manufacturing pyrolysis oil from waste and scrap plastics at its chemical recycling plant in Vikramgad, Palghar, Maharashtra. The company converts all kinds of plastics into combustible liquid fuel (pyrolysis oil as a substitute for furnace oil) and generates by-products including carbon (substitute for coal) and gas (substitute for LPG). This eco-friendly process addresses the environmental hazard of plastic waste while creating commercially viable fuel alternatives. The company started commercial operations in FY 2021-2022 after two years of research and development. Revenue is generated from the sale of pyrolysis oil and by-products to customers in the renewable energy and industrial sectors.
Objects of the Issue
- Working Capital Requirements [●] p.26
- Purchase of the land where our Manufacturing facility is currently situated 176.00 Lakhs p.26
- General Corporate Purpose [●] p.26
- Working Capital Requirements [●] p.82
- Purchase of the land where our Manufacturing facility is currently situated 176.00 Lakhs p.84
- General Corporate Purposes [●] p.84
- Not stated in this part of the document
- The document is Part 4 of 6 and contains primarily financial statements and notes. The Objects of the Issue section would typically appear in earlier sections of an offer document. This part contains financial data but does not explicitly state the specific uses of proceeds from this IPO.
Issue Structure
- Total Issue
- Upto 60,00,000 Equity Shares aggregating to ₹ [●] Lakhs
- Fresh Issue
- Upto 60,00,000 Equity Shares of face value ₹ 10.00 each aggregating to ₹ [●] Lakhs
- Offer for Sale
- Nil
- Price Band
- ₹ 45.00 (Floor Price) to ₹ 47.00 (Cap Price)
- Lot Size
- 3,000 Equity Shares and in multiples of 3,000 thereafter
- Face Value
- ₹ 10.00 each
Business Model
The company manufactures and sells pyrolysis oil (substitute for furnace oil) and by-products (carbon and gas) produced through the chemical recycling of waste plastics. Revenue is derived from selling these products to industrial customers.
Business Segments
SWOT Analysis
- • Decoded pyrolysis technology formula(p.87)
- • Strategic location of manufacturing facility(p.87)
- • Expanding installed renewable energy capacity and government support(p.102)
- • Growing waste management market opportunity(p.100)
- • Patented pyrolysis process technology(p.107)
- • Successfully decoded complex pyrolysis conversion formula(p.107)
- • Strategic manufacturing location near major industrial areas and raw material sources(p.107)
- • Strong quality assurance and control systems(p.108)
- • Experienced and qualified management team(p.108)
- • Multiple revenue streams from by-products(p.105)
- • Proprietary pyrolysis technology with patent protection for plastic waste conversion process(p.178)
- • Strategic manufacturing location with proximity to major industrial demand centers(p.178)
- • Quality assurance processes and consistent delivery record enabling customer retention(p.178)
- • Experienced management team with proven capability in business operations and growth(p.179)
- • Low sulfur/nitrogen content in pyrolysis oil creates environmental advantage over diesel(p.178)
- • Limited operating history in core business(p.29)
- • Heavy dependence on key customers(p.30)
- • Leased facilities (office and factory)(p.29)
- • No long-term customer agreements(p.31)
- • Regulatory compliance lapses(p.32)
- • Outstanding litigation involving promoters(p.28)
- • Negative cash flows in prior periods(p.37)
- • Trademark not yet registered(p.38)
- • High leverage and short-term borrowings(p.48)
- • Heavy dependence on land lease arrangement(p.84)
- • Minimal financial history and early-stage operations(p.49)
- • Very concentrated promoter shareholding(p.76)
- • Early-stage company with limited operational history(p.105)
- • Limited geographic reach due to capacity constraints(p.108)
- • Small workforce and limited human resources(p.110)
- • Significant financial debt obligations(p.111)
- • Heavy dependence on promoter shareholding(p.140)
- • Minimal cash reserves(p.153)
- • High financial leverage with debt-to-equity ratio of 0.98 pre-IPO(p.176)
- • Significant capital work-in-progress of ₹758.14 Lakhs indicates incomplete capacity expansion(p.167)
- • Outstanding TDS (Tax Deducted at Source) defaults totaling ₹1,190 Lakhs(p.193)
- • Expiration of pollution and plastic waste management certifications requiring renewal(p.198)
- • Very recent operational history with minimal financial performance prior to 2021-22(p.182)
- • Growing renewable energy market in India(p.24)
- • Rapid expansion of renewable capacity(p.24)
- • Significant waste generation addressing market need(p.24)
- • Government support for renewable energy sector(p.24)
- • Northern India hub for renewable energy(p.24)
- • Rising municipal solid waste generation in India(p.100)
- • Government support for alternative fuels and waste processing(p.97)
- • Growing oil and energy demand in India(p.101)
- • Make in India and manufacturing-focused government initiatives(p.98)
- • Government push for renewable energy and waste management(p.103)
- • Growth in industrial demand for alternative fuels(p.106)
- • Expansion of production capacity and geographic reach(p.108)
- • Potential for product refinement and circular economy applications(p.106)
- • Government waste collection partnerships(p.109)
- • Strategic acquisition and alliance opportunities(p.109)
- • Geographic expansion beyond Maharashtra to capture demand in other states(p.179)
- • Scale economies and increased production capacity to improve operational efficiency(p.179)
- • Refinement of pyrolysis oil into diesel fuel for higher-value applications(p.178)
- • Strategic acquisitions and technology partnerships to expand market reach and capabilities(p.180)
- • Brand awareness and marketing initiatives to capture industrial and heavy industry customers(p.180)
- • Rapid technological changes in renewable energy(p.30)
- • COVID-19 pandemic impact(p.30)
- • Intense competition from organized players(p.36)
- • Regulatory changes in industry(p.43)
- • Macroeconomic conditions affecting demand(p.36)
- • Power supply disruptions(p.35)
- • Severe weather and natural disasters(p.35)
- • Industry malpractices affecting sector reputation(p.43)
- • Global economic slowdown and inflation(p.93)
- • Political instability and policy changes affecting business(p.44)
- • Financial instability in Indian markets from global contagion(p.44)
- • Natural calamities impacting economic growth(p.45)
- • Foreign exchange and capital movement restrictions(p.45)
- • Increasing competition in the renewable energy sector(p.110)
- • Regulatory and environmental compliance requirements(p.110)
- • Dependence on raw material supply from specific industries(p.109)
- • Volatility in fuel prices and market demand(p.110)
- • Requirement to obtain material environmental clearances for operations(p.110)
- • Risks from rapid changes in government policies and incentives(p.103)
- • Regulatory restrictions and pollution control compliance requirements for hazardous waste processing(p.197)
- • Vulnerability to fluctuations in raw material availability and plastic waste supply(p.178)
- • Competition from established petroleum/diesel suppliers and other waste-to-fuel alternatives(p.190)
- • Volatility in global commodity prices affecting profitability and fuel price competitiveness(p.190)
- • Dependence on industrial customer base exposed to economic cyclicality and slowdowns(p.178)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Karan Atul Bora | Promoter | 90.24% | 64.43% |
| Mr. Kunal Atul Bora | Promoter | — | — |
| Mr. Karan Atul Bora | Promoter | 90.24% | 64.43% |
| Mr. Kunal Atul Bora | Promoter | 0.00% | 0.00% |
| Mr. Ajit Trimbakkar | Promoter Group | 2.57% | 1.84% |
| Ms. Kavita Arjun Karwasra | Promoter Group | 0.33% | 0.24% |
| Mr. Manoj Karwasara | Promoter Group | 0.33% | 0.24% |
| Mr. Kamlesh M. Gandhi | Promoter Group | 0.33% | 0.24% |
| Mr. Gaurang N. Patel | Promoter Group | 0.33% | 0.24% |
| Karan Atul Bora | Promoter | 90.24% | — |
| Kunal Atul Bora | Promoter | 0.00% | — |
| Karan Atul Bora | Promoter/Director | — | — |
| Ajit Trimbakkar | Shareholder | — | — |
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.