Divyadhan Recycling Industries had a strong debut on the NSE SME, listing at ₹84, which is a 31% premium. The company’s initial public offering (IPO) saw impressive subscription levels after the bidding process closed on September 30.
The IPO was oversubscribed by 40.93 times overall, with the retail category subscribed 32.43 times, the Qualified Institutional Buyer (QIB) category subscribed 29.39 times, and the Non-Institutional Investor (NII) category subscribed 76.03 times.
Despite this strong interest, the grey market premium (GMP) for the IPO suggested a softer opening, with reports indicating a GMP of Nil. This meant that market participants expected the shares to list close to the upper band of the bidding price of ₹64.
Divyadhan Recycling Industries’ IPO raised ₹24.17 crores, consisting of a new issue of 37.76 lakh shares. The IPO’s registrar is Skyline Financial Services Private Ltd., with Narnolia Financial Services Ltd. as the book-running lead manager. Kantilal Chhaganlal Securities is acting as the market maker for this IPO.
Founded in May 2010, Divyadhan Recycling Industries specializes in producing recycled pellets and recycled polyester staple fiber (R-PSF). The company holds quality certifications, including ISO 14001:2015 for both its Quality Management System and Environmental Management System.
The funds raised from the IPO will be used to cover capital expenditure needs, general corporate purposes, and related issue expenses.
Although Divyadhan Recycling Industries has not seen much revenue growth between FY22 and FY24, its net profit has increased from ₹0.52 crore in FY22 to ₹2.16 crore in FY23, and further to ₹2.37 crore in FY24.
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