Hi-Green Carbon IPO plans to raise ₹52.80 crore which comprises a fresh issue of 59.9 lakh equity shares and an offer for sale (OFS) of 10.50 lakh equity shares.. Hi-Green Carbon IPO will list on NSE SME platform Rajkot-based Hi-Green Carbon is engaged in the business of waste tyre recycling.
IPO opens
Sep 21, 2023
IPO Closes
Sep 25, 2023
IPO Size (Rs.)
₹52.80 Cr
IPO Size (shares)
7,040,000 share
Breakup
only Fresh issue
Face Value:
₹ 10
IPO Price in Rs :
₹71 to ₹75
Minimum Lot
1600 Shares
Listing At
NSE SME
market Maker
5.98%
Anchor Quota
28.19%
Qib Quota
18.80%
NII Quota
14%
Retail Quota
32.9%
Lead Manager
Beeline Capital Advisors Pvt Ltd.
Registrar
Kfin Technologies Limited
Market maker
Spread X Securities
About Hi-Green Carbon Limited:
Company is engaged in the business of waste tyres recycling.
Its manufacturing plant operates on continuous pyrolysis process.
It is an uninterrupted working method with continuous feeding and discharging system controlled by the Supervidory control and data acquisition (SCADA).
Following continuous pyrolysis, it processes the end-of-life tyres (ELTs) pieces to produce energy components and raw materials. The major products are Recovered Carbon Black (rCB) and Steel Wires under Raw Material Category, Fuel Oil and Synthesis Gas under Energy components category. In order to utilise the energy in efficient manner, it uses the said synthesis gas, produced as by product of the pyrolysis process, for also manufacturing sodium silicate commonly known as raw glass
Headquartered in Rajkot, Gujarat, Hi-Green Carbon Limited is a part of Radhe Group Energy, based at Rajkot, Gujarat. Radhe Group of Energy, founded by Dr. Shaileshkumar Vallabhdas Makadia,
The groups focus is on Renewable Energy with a diversified balanced portfolio stretching from castings, capital goods, consumer goods, corporate farming, packaging and herbal products.
Promoters of Company are M/s. RNG Finlease Private Limited, Mr. Amitkumar Hasmukhrai Bhalodi, Dr. Shaileshkumar Vallabhdas Makadia, Mrs. Krupa Chetankumar Dethariya, Mrs. Radhika Amitkumar Bhalodi, Mrs. Shriyakumari Shaileshkumar Makadia, Mr. Koosh Chetanbhai Dethariya.
As on the date of filing RHP M/s. RNG Finlease Private Limited is holding 71.58% of pre-issue paid up capital of the company.
Financials:
Particulars / Rs Lacs
FYE23
FYE22
FYE21
Revenue from operations
7,852.41
5,110.69
2,427.09
Profit bef Tax
1,613.26
466.81
13.2
Profit After Tax
1,084.78
367.95
9.59
Share Capital
1,900.00
1,900.00
1,900.00
Net worth
2,259.02
1,174.23
806.28
Earnings Per Share
5.71
1.94
0.05
NAV per Equity Shares
11.89
6.18
4.24
Total Borrowings
1,362.19
1,586.70
1,783.10
Post issue Share Capital
2,499
FV
10.0
IPO price
75.0
EPS Fy23
4.3
PE Fy23
17.3
Market cap in Lacs
18,742.5
Market Cap/sales
2.4
Anchor
Hi-Green Carbon IPO: Salient Points
At present, manufacturing facility of company is located in Bhilwara, Rajasthan having installed capacity of 24000 MT per annum for Tire Processing and 12000 MT per annum for Sodium Silicate Production respectively.
The company will use proceeds of the issue to set up a new facility in the Dhule district of Maharashtra, with a recycling capacity of 100 metric tonnes of waste tyres per day. Company has already acquired land admeasuring 21,500 sq. meters for the said purpose. The expansion will add to the company’s existing tyre processing capacity.
Revenue bifurcation product wise:
Name of Product
For the year ended March 31
2023
2022
2021
Sales
%
Sales
%
Sales
%
Recovered Carbon Black
1,731.86
22.06%
1,076.59
21.07%
667.99
27.52%
Fuel Oil
3,676.53
46.82%
2,389.20
46.75%
1,063.49
43.82%
Sodium Silicate Glass
2,432.59
30.98%
1,628.29
31.86%
671.00
27.65%
Steel Scrap and others
11.43
0.15%
16.61
0.32%
24.62
1.01%
Total Sales
7,852.41
100.00%
5,110.69
100.00%
2,427.09
100.00%
It also exports its products to Sri Lanka, Qatar and Thailand.
Nature of Sale
For the year ended March 31
2023
2022
2021
Sales
%
Sales
%
Sales
%
Domestic Sale
7,535.52
95.96%
4,899.67
95.87%
2,370.08
97.65%
International Sale
316.89
4.04%
211.03
4.13%
57.01
2.35%
Total Sales
7,852.41
100.00%
5,110.69
100.00%
2,427.09
100.00%
State of Rajasthan contribute 79.73%, of the total domestic revenue for financial year ended on March 31, 2023.
KPIs of company:
Particulars
For the Year ended on March 31
2023
2022
2021
Revenue from Operations (₹ in Lakhs)
7,852.41
5,110.69
2,427.09
Growth in Revenue from Operations (%)
53.65%
110.57%
0
EBITDA (₹ in Lakhs)
1994.02
885.38
356.12
EBITDA Margin (%)
25.39%
17.32%
14.67%
Profit After Tax (₹ in Lakhs)
1084.78
367.95
9.59
PAT Margin (%)
13.81%
7.20%
0.40%
RoE (%)
63.19%
37.16%
1.20%
RoCE (%)
64.70%
27.97%
3.28%
Net Fixed Asset Turnover (In Times)
4.30
3.12
1.43
Operating Cash Flows (₹ in Lakhs)
1553.11
669.81
(118.58)
Hi-Green Carbon IPO is coming at a PE ratio of 17.3x(fy23 earnings). revenues and profits has increased many times in Fy22 and Fy23.
Another company, the recently listed Srivari Spices gave good listing gains.
I intend to apply in Hi-Green Carbon IPO subject to availability of funds and expect good respponse despite many IPOs.
GMP as reported on social media has been around Rs. 60 and has slowly moved upwards.
Beeline Capital Advisors Pvt Ltd is the Lead Manager to the issue. It has a reasonable record. Past issues handled by them include Vinsys IT, Ahasolar Technologies, Pentagon Rubber, Remus Pharmaceuticals, Sotac Pharmaceuticals, RBM Infracon Limited, Transvoy Logistics, Dev Labtech, Viviana Power Tech, Vital Chemtech, Aristo Bio-Tech and Lifescience, Viaz Tyres, Vertexplus Technologies etc.
SME IPO are quite illiquid and volatile and exit options sometimes is delayed.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
