Divyadhan Recycling Industries SME IPO: Check latest subscription, GMP and other details

Divyadhan Recycling Industries opened its SME IPO for subscription on September 26 and will end today, September 30. The company aims to raise ₹24.17 crore through the offering and has set a price band in the range of ₹60-64 per share.

Divyadhan Recycling Industries IPO Subscription Status

The IPO has been witnessing robust demand with the issue being subscribed 30.57  times till 3:34 pm on Monday, the third of the bidding. The IPO received bids for 7.65 crore equity shares against 25.06 lakh shares on offer.

The retail investor segment was subscribed fully subscribed 27.46 times, while the non-institutional investors (NII) category was booked 48.59 times. Finally, the Qualified Institutional Buyers (QIBs) quota was bid 22.45 times till now.

Divyadhan Recycling Industries IPO GMP today

The IPO's grey market premium (GMP) today, September 30 is ₹0 per share, which indicates an expected listing price of ₹64, same as its issue price. The GMP has been the same since September 19.

About the IPO

Divyadhan Recycling Industries IPO is comprised of only a fresh issue of 37.76 lakh shares with no offer-for-sale component. The company plans to utilize the net proceeds from the issue to fund capital expenditure requirements, address general corporate purposes, and cover the associated issue expenses.

Retail investors must apply for a minimum lot size of 2000 shares, amounting to an investment of ₹1.28 lakh. High net-worth individuals (HNIs) must apply for at least two lots, or 4000 shares, totalling ₹2.56 lakh.

The company has reserved 50% of the net offer size for Qualified Institutional Buyers and 15% for the Non Institutional Investors. The remaining 35% is allocated to retail investors.

The allotment for the Divyadhan Recycling Industries IPO is expected to be finalised on Tuesday, October 1, 2024. Meanwhile, the initiation of refunds for investors who were not allotted the shares and the credit of shares to the Demat account of the allottees will take place on Thursday, October 3. The shares will be listed on the NSE SME platform on Friday, October 4, 2024.

Narnolia Financial Services Ltd is the book running lead manager of the Divyadhan Recycling Industries IPO, while Skyline Financial Services Private Ltd is the registrar for the issue. The market maker for Divyadhan Recycling Industries IPO is Kantilal Chhaganlal Securities.

About the company

Incorporated in May 2010, Divyadhan Recycling Industries Limited specializes in manufacturing Recycled Polyester Staple Fibre (R-PSF) and Recycled Pellets. The company holds certifications for both Quality Management and Environmental Management systems. Divyadhan operates across two business segments: Recycled Fiber, producing R-PSF from post-consumer PET bottles like those used for soda and water, and Recycled Pellets, manufactured from the same raw materials.

Between FY23 and FY24, the company's revenue increased by 2 percent, while profit after tax (PAT) grew by 10 percent.

Review

"The company is engaged in the business of manufacturing recycled polyester staple fibre and pellets. It posted almost static top lines for the last three fiscals, but marked surge in bottom lines for FY23 and FY24 with cost control and more value added features to its products. It is operating in the highly competitive and fragmented segment. Based on FY24 earnings, the issue appears fully priced. Though the issue appears fully priced, it is poised for bright prospects and better times ahead. Investors may park funds for long term," Dilip Davda of Chittorgarh.com, said, assigning an 'apply' rating to the issue.

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