Sunlite Recycling Industries Limited manufactures copper rods and wires, copper earthing wires, copper earthing strips, copper conductors, copper wire rods etc. by recycling copper scrap.
IPO opens
August 12 2024
IPO Closes
August 14, 2024
IPO Size (Rs.)
₹30.24 Cr)
Breakup
Fresh issue only
Face Value:
₹ 10
IPO Price in Rs :
₹100 to ₹105 per share
Minimum Lot
1200 Shares
Listing At
NSE SME
QIB
~50 %
NII Quota
~15%
Retail Quota
~35%
Lead Manager
Hem Securities Limited
Registrar
Cameo
Market maker
Hem Finlease.
Sunlite Recycling Industries Limited was established in 2012 and manufactures copper rods and wires, copper earthing wires, copper earthing strips, copper conductors, copper wire rods etc. by recycling copper scrap.
These are suitable for applications in power generation, transmission, distribution and electronic industries.
They are also engaged in providing job work services for processing of various products of copper.
Sunlite Recycling Industries has manufacturing facility in Kheda, Gujarat,
Net proceeds use:
Sr No.
Particulars
Amount (₹ in Lakhs)
1.
Funding of capital expenditure towards installation of new Plant & Machinery
404.55
2.
Repayment and/or pre-payment, in full or part, of certain borrowings availed by our Company;
1580.00
3.
General Corporate Purpose
[●]
Peers
Company/ FY24 figures
CMP Rs.
Revenue Rs. Cr
Net Profit Rs. Cr
NPM (%)
PE
Macp/sales
RONW
Sunlite Recycling Industries Limited
105
1,166.55
8.9
0.8%
12.8
0.1
44.43%
Rajnandini Metal Limited
12.7
1,220.93
15.00
1.2%
23
0.29
26.94%
Bhagyanagar India Limited
99.9
1,474.80
46
3.1%
33.9
0.22
23.65%
Company has diversified revenue from multiple geographical locations from various states in India.
Copper scrap is procured from global suppliers from India and in Saudi Arabia, UAE, USA etc.
Company’s topline has grown at CAGR of 12 % from FY22-FY24.
Profits has grown at CAGR of 45 % from FY22-FY24.
Sunlite Recycling Industries IPO is coming at a PE ratio of 12.8x (FY24 Earnings).
I intend to apply in Sunlite Recycling Industries IPO subject to availability of funds. This is a high volume low margin business. Good demand for copper.
GMP as reported on social media has been Rs. 30-35.
The lead manager Hem securities has a good track record.
SME IPOs are quite volatile and new retail investors need to exercise considerable caution in my view.
This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared 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.
