Sunlite Recycling Industries
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 12 Aug 2024 – 14 Aug 2024
- Listing date
- 20 Aug 2024
- Face value
- ₹10 per share
- Issue price
- ₹105 per share
- Lot size
- 1,200 shares
- Issue type
- Book Building issue
- Total issue size
- ₹30.24 Cr
- Market cap at offer price
- ₹114 Cr
- Promoter holding
- 100.00% → 73.53% pre-issue → post-issue
- ISIN
- INE0U2N01013
- Registrar
- Cameo Corporate Services Ltd.
- Lead managers
- Hem Securities Ltd.
- Registered office
- Survey No.270A & Plot No.1, Survey No.267, Chhatha Mile, Dantali, Vaso, 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 | 8,18,400 | — | — |
| Market maker | 1,48,800 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹105
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,26,000 |
| S-HNI (min) | 2 | 2,400 | ₹2,52,000 |
| S-HNI (max) | 7 | 8,400 | ₹8,82,000 |
| B-HNI (min) | 8 | 9,600 | ₹10,08,000 |
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 (₹) | 11.13 | 8.18 |
| P/E (×) | 9.43 | 12.84 |
| Price to book (×) | 2.41 | — |
| Market cap | — | ₹114 Cr |
Key performance indicators
- Return on net worth
- 44.43%
- ROCE
- 29.49%
- Debt / equity
- 1.74
- PAT margin
- 0.76%
- NAV per share
- ₹43.55
- Price to book
- 2.41
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Sunlite Recycling Industries
Sunlite Recycling Industries Limited (formerly Sunlite Alucop Private Limited) is a Gujarat-based manufacturer of copper rods, wires, earthing wires/strips, conductors and wire bars made by recycling copper scrap, with end-applications in power generation, transmission, distribution and electronic industries. The business began in 2012 as the proprietorship 'M/s Sunlite Industries' of promoter Prahladrai Ramdayal Heda making oxygen-free copper rods, became a three-partner firm in September 2017, was converted into Sunlite Alucop Private Limited on August 4, 2022, renamed Sunlite Recycling Industries Private Limited in January 2024, and became a public limited company on April 30, 2024. It operates a rented ~12,152 sq. mtr. registered office-cum-manufacturing unit at Dantali, Kheda (Gujarat) with 20 machines (induction furnaces, CCR plant, wire drawing, bunching and strip/extrusion lines) and a marketing office in Navi Mumbai, employing 38 permanent employees plus contract labour. It earns revenue mainly from selling copper rods (89.66% of FY24 sales), copper wires (6.16%), copper strips (1.94%) and other products (2.24%), plus job-work conversion of customer-supplied copper scrap; FY24 revenue from operations was Rs. 1,16,627.09 lakhs with PAT of Rs. 890.36 lakhs (PAT margin 0.76%). Products are sold across more than 10 Indian states (Gujarat 45.73%, Dadra & Nagar Haveli 21.49%, Maharashtra 12.75% of FY24 revenue), with small exports to Nepal in FY22-FY23; the company holds ISO 9001:2015 certification and uses a 501 KW DC rooftop solar system and natural gas in its production process.
Company Analysis
from RHPSunlite Recycling Industries Limited manufactures copper rods, wires, earthing wires and strips, conductors and wire bars by recycling copper scrap for the power generation, transmission, distribution and electronic industries, and also provides copper job-work processing services.
Sunlite Recycling Industries Limited (formerly Sunlite Alucop Private Limited) is a Gujarat-based manufacturer of copper rods, wires, earthing wires/strips, conductors and wire bars made by recycling copper scrap, with end-applications in power generation, transmission, distribution and electronic industries. The business began in 2012 as the proprietorship 'M/s Sunlite Industries' of promoter Prahladrai Ramdayal Heda making oxygen-free copper rods, became a three-partner firm in September 2017, was converted into Sunlite Alucop Private Limited on August 4, 2022, renamed Sunlite Recycling Industries Private Limited in January 2024, and became a public limited company on April 30, 2024. It operates a rented ~12,152 sq. mtr. registered office-cum-manufacturing unit at Dantali, Kheda (Gujarat) with 20 machines (induction furnaces, CCR plant, wire drawing, bunching and strip/extrusion lines) and a marketing office in Navi Mumbai, employing 38 permanent employees plus contract labour. It earns revenue mainly from selling copper rods (89.66% of FY24 sales), copper wires (6.16%), copper strips (1.94%) and other products (2.24%), plus job-work conversion of customer-supplied copper scrap; FY24 revenue from operations was Rs. 1,16,627.09 lakhs with PAT of Rs. 890.36 lakhs (PAT margin 0.76%). Products are sold across more than 10 Indian states (Gujarat 45.73%, Dadra & Nagar Haveli 21.49%, Maharashtra 12.75% of FY24 revenue), with small exports to Nepal in FY22-FY23; the company holds ISO 9001:2015 certification and uses a 501 KW DC rooftop solar system and natural gas in its production process.
Objects of the Issue
- Funding of capital expenditure towards installation of new Plant & Machinery (Hydraulic Drawing & Tension Straightening Machine, High Speed electrolytic tinning machine, Fine Wire Drawing Machines, Double Twist Bunching Machines for manufacturing copper flat bus-bars, tinned copper wire and tinned coated bunched copper wire) Rs. 404.55 Lakhs p.73
- Repayment and/or pre-payment, in full or part, of certain borrowings availed by our Company (HDFC Bank Working Capital Demand Loan of Rs. 1400.00 Lakhs and Working Capital Term Loan GECL Extn. of Rs. 180.00 Lakhs) Rs. 1580.00 Lakhs p.74
- General Corporate Purpose p.75
Issue Structure
- Total Issue
- Upto 28,80,000 Equity Shares of face value Rs. 10 each at an issue price of Rs. [●] per share, aggregating up to Rs. [●] Lakhs (constituting 26.47% of post-issue paid-up capital)
- Fresh Issue
- Entire issue is a Fresh Issue of upto 28,80,000 Equity Shares aggregating up to Rs. [●] lakhs (out of which 1,48,800 Equity Shares reserved for the Market Maker; Net Issue of 27,31,200 Equity Shares constituting 25.10% of post-issue capital)
- Offer for Sale
- Nil
- Face Value
- Rs. 10
Business Model
The Company earns revenue by manufacturing and selling copper products - primarily copper rods (~89.66% of FY24 revenue), along with copper wires, copper strips and other items - produced by melting and recycling copper scrap procured from domestic suppliers and imports (Saudi Arabia, UAE, USA). It also earns job-work income by converting customer-supplied copper scrap into copper wire and copper wire rod per customer specifications. The model is high-volume, low-margin and working-capital intensive, with raw material (copper scrap) consumption constituting 96.36% of revenue from manufacturing activities in FY24.
Business Segments
SWOT Analysis
- • Diverse copper product portfolio (rods, wires, earthing wires/strips, conductors, wire bars) serving power and electronics applications(p.101)
- • Stringent quality control backed by ISO 9001:2015 certification(p.101)
- • Diversified revenue across multiple Indian geographies (~92.80% of FY24 revenue from top 5 states)(p.102)
- • Experienced promoter-led senior management with 15-17 years of industry experience(p.102)
- • Strong track record of revenue growth and profitability(p.101)
- • On-site 501 KW rooftop solar system providing green energy and cost effectiveness(p.110)
- • No long-term supply agreements for raw materials; procurement largely from spot market(p.26)
- • Supplier concentration - top 10 suppliers account for 52.03% of FY24 raw material purchases(p.27)
- • Customer concentration - top 10 customers contribute 40.00% of FY24 revenue(p.28)
- • Entire manufacturing concentrated at a single unit at Dantali, Kheda, Gujarat(p.28)
- • Very short operating history as a company (incorporated August 2022)(p.28)
- • Single-segment dependence - copper rods account for 89.66% of FY24 revenue(p.29)
- • High volume-low margin business model constrains pricing power(p.29)
- • High debt-to-equity ratio from bank-financed working capital requirements(p.34)
- • Domestic copper demand projected to grow ~11% in FY2024 and FY2025, outpacing global growth(p.20)
- • Government thrust on affordable housing, smart cities, defence and EV infrastructure supports copper demand(p.20)
- • GoI's 500 GW renewable energy target by 2032 to drive transmission network copper demand(p.99)
- • IPO-funded capex (Rs. 404.55 Lakhs) to add capacity for higher-value products like copper busbars and tinned copper wire(p.102)
- • Strategy to deepen penetration in existing key markets and expand geographical presence(p.103)
- • Significant demand for tinned copper wire in power generation, transmission, distribution and electronics(p.74)
- • Volatility in copper scrap (raw material) prices directly pressures margins(p.26)
- • Substitution of copper wires by lower-cost, lighter aluminium wires threatens core business(p.29)
- • Competition from both organized and unorganized players affects pricing and realization(p.35)
- • Growth tied to cyclical end-user industries (power generation, transmission, distribution, electronics)(p.35)
- • Increasingly stringent environmental, health and safety regulations raise compliance costs(p.36)
- • Slowdown in Indian economic growth could hurt demand and raw material prices(p.43)
- • Changing laws, rules, regulations and tax uncertainties in India(p.43)
- • Foreign exchange risk on imported raw materials (USD-denominated purchases)(p.27)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Nitin Kumar Heda | Promoter; Managing Director | 50.00 | 36.76 |
| Prahladrai Ramdayal Heda | Promoter; Chairman & Whole Time Director | 25.00 | 18.38 |
| Khushboo Manishkumar Heda | Promoter; Non-Executive Director | 25.00 | 18.38 |
| Manish Kumar Heda | Promoter; Chief Financial Officer | 0.00 | 0.00 |
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.