Divyadhan Recycling Industries shares list at 31% premium on NSE SME

Divyadhan Recycling Industries shares made a positive debut on the NSE SME platform on Friday, opening at Rs 84, a premium of 31.25% over the issue price of Rs 64 per share.

The Divyadhan Recycling Industries IPO was a book-built issue totaling Rs 24.17 crore, featuring a fresh issue of 37.76 lakh shares. The issue was subscribed 41 times over three days, with non-institutional investors leading the charge by buying 76 times the portion reserved for them. Retail investors and qualified institutional buyers (QIBs) subscribed 32 and 29 times, respectively.

Incorporated in 2010, the company is into the business of manufacturing of Recycled Polyester Staple Fibre (R-PSF) and Recycled Pellets. The recycled fibre and pellets are produced from post-consumer PET bottles also known as Polyethylene Terephthalate bottles. The company started its operations in the financial year 2018-19, by manufacturing Recycled Polyester Staple Fibre (R-PSF) at their manufacturing facility based in Baddi, Himachal Pradesh.

The company intends to utilise Rs 17.03 crore towards the purchase of plant and machinery. Some part of the net proceeds will be used for general corporate purposes. However, the amount utilised for general corporate purposes will not exceed 25% of the gross proceeds of the issue.

Its revenue from operations for the financial year ended March 31, 2024, stood at Rs 56.13 crore versus Rs 57.34 crore in FY23 and Rs 57.78 crore in FY22. Profit after tax in the said periods stood at Rs 2.38 crore, Rs 2.16 crore and Rs 52.91 lakh. Cash flow from operating activities over the last three FYs was Rs 22.98 lakh, Rs 4.42 crore and Rs 3.84 crore, respectively.

Narnolia Financial Services Limited serves as the lead manager for the issue, while Skyline Financial Services Private Limited is the registrar.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)

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