Divyadhan Recycling Industries share price lists with 31% premium at ₹84 on NSE SME; hits 5% upper circuit after debut

Divyadhan Recycling Industries share price listed with a decent 31% premium at ₹84 on the NSE SME on Friday, 4 October. The stock, post listing, gained further to hit the 5% circuit limit of ₹88.20.

Divyadhan Recycling Industries IPO had seen strong subscription status following the three-day bidding process that ended on September 30.

The IPO of Divyadhan Recycling Industries received 40.93 times subscription. The offer's retail portion was subscribed 32.43 times in the retail category, 29.39 times in the qualified institutional buyer (QIB) category, and 76.03 times in the non-institutional investor (NII) category.

The grey market premium or GMP for Divyadhan Recycling Industries IPO, however, indicated a soft opening for the company shares. As per Investorgain.com data, the Divyadhan Recycling Industries IPO GMP was nil, suggesting listing at the IPO price of ₹64.

Divyadhan Recycling Industries IPO, worth ₹24.17 crore, was entirely a fresh issue of 37.76 lakh shares.

The registrar of the Divyadhan Recycling Industries IPO was Skyline Financial Services Private Ltd, and the book-running lead manager was Narnolia Financial Services Ltd. Kantilal Chhaganlal Securities was the market maker for Divyadhan Recycling Industries' IPO.

Divyadhan Recycling Industries was founded in May 2010 and produces recycled pellets and recycled polyester staple fiber (R-PSF).

For the purpose of producing recycled polyester staple fiber, the company holds certifications for both the Quality Management System (ISO 14001:2015) and the Environmental Management System (ISO 14001:2015).

Divyadhan Recycling Industries plans to utilise the proceeds from the IPO to meet its capital expenditure requirements. utilising part of proceeds for general corporate purposes and further to meet issue expenses.

While the revenues reported by Divyadhan Recycling Industries have not seen much rise during the FY22-24 period, its net profit has grown from ₹0.52 crore in FY22 to ₹2.16 crore in FY23 and ₹2.37 crore in FY24

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