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Divyadhan Recycling Industries IPO - AstroIPO

Divyadhan Recycling Industries IPO

September 20, 2024 Written By Mihir Gohel, Reviewed and Fact Checked by Harpal Parmar

The Divyadhan Recycling Industries IPO is opening from September 26 to September 30, 2024. This company, operating in the textile sector, is offering 3,776,000 shares to raise up to ₹24.17 crore.

The price band is set at ₹60 to ₹64 per share, with a face value of ₹10. Investors can bid for a minimum lot of 2000 shares, requiring an investment of ₹128,000 at the upper price band.

Divyadhan Recycling Industries is a relatively new entrant, incorporated in 2023. The IPO will be listed on the NSE SME platform, catering to small and medium enterprises.

Kantilal Chhaganlal Securities will serve as the market maker, managing a portion of 200,000 shares. The textile sector in India has been a cornerstone of the economy, contributing significantly to exports and employment.

Varun Gupta, the Managing Director, leads the company. This book-built issue allows the market to determine the final offer price within the given band, potentially benefiting both the company and investors.

The promoters of Divyadhan Recycling Industries Limited are Mr. Pratik Gupta and Mr. Varun Gupta. The company’s revenue increased by 2%, while profit after tax (PAT) grew by 10% between the fiscal years ending March 31, 2023, and March 31, 2024.

The market capitalization of Divyadhan Recycling Industries IPO stands at Rs 91.56 crore as of March 31, 2024.

Divyadhan Recycling Industries IPO Details

IPO Size ₹24.17 Cr
Price Range ₹60 - ₹64
Retail Quota 35%
QIB Quota 50%
NII Quota 15%
Employee Discount --
Listing at NSE
Minimum Quantity 2000
Investment (cut-off price) ₹1,28,000
Pre IPO Promotor Holding 94.06%
Post IPO Promotor Holding 69.24%
DHRP Draft Click Here
RHP Draft Click Here
Anchor Investors List Click Here

Divyadhan Recycling Industries IPO Timelines

26/09/2024
Start Date
30/09/2024
End Date
01/10/2024
Allotment Date View Status
03/10/2024
Refund Initiation
03/10/2024
Credit of Shares to Demat Ac
04/10/2024
Listing Date

Divyadhan Recycling Industries IPO Lot Size

Application Lot Size Shares Amount
Retail Minimum 1 2000 ₹1,28,000
Retail Maximum 1 2000 ₹1,28,000
HNI Minimum 2 4000 ₹2,56,000

Divyadhan Recycling Industries IPO Subscription Status

QIB NII Retail EMP Total
29.39x 76.03x 32.43x -- 40.93x

Divyadhan Recycling Industries IPO GMP

IPO Performance on Listing Day

Opening Price Closing Price Day High Day Low
₹84 ₹88.20 ₹88.20 ₹81

Divyadhan Recycling Industries IPO Company Financials

Year Total Income Total Expense PAT
FY 2022 ₹59.82 ₹59.09 ₹0.53
FY 2023 ₹58.16 ₹55.15 ₹2.16
FY 2024 ₹59.13 ₹55.83 ₹2.38

About Company

Divyadhan Recycling Industries Limited (DRIL) was founded by executives from the textiles industry, aiming to establish a state-of-the-art manufacturing unit that adheres to high-quality standards absent in the Indian recycled market. Since its inception, DRIL has positioned itself as a premier supplier of fiber for fill and carpet yarn applications, offering recycled polyester products such as fiber, chips, and flakes. The company’s products command a significant premium due to a strong commitment to customer needs and consistent quality assurance.

Originally incorporated as Divyadhan Consultants Private Limited in 2010, the company underwent a name change to Divyadhan Recycling Industries Private Limited in September 2023 and later became a public limited company in March 2024.

The global polyester staple fiber market, valued at $31.8 billion in 2023, is projected to grow at a CAGR of 4.7% through 2034, driven by demand in the home furnishings sector. The Indian polyester staple fiber market, reaching $1.54 billion in 2023, is expected to grow at a CAGR of 4.25% through 2029. The use of recycled polyester, derived from post-consumer PET bottles, aligns with sustainability efforts amid increasing environmental concerns associated with synthetic fibers.

Incorporation Date Sector Managing Director
2023 Textile Varun Gupta

Know Before Investing

Divyadhan Recycling Industries IPO Strengths

  • Sustainable business model prioritizes long-term viability.
  • Environmentally conscious approach minimizes ecological impact.
  • Cordial relations with customers foster loyalty and collaboration.
  • Quality deliverables ensure high standards and client satisfaction.

Divyadhan Recycling Industries IPO Risks

  • The company operates from a registered office that is not owned, and vacating this location could disrupt business operations.
  • Promoters are involved in ongoing legal proceedings, and any adverse outcomes may result in penalties and negatively impact business performance.
  • A significant portion of revenue has been derived from Himachal Pradesh over the last three years, and adverse developments in this state could affect overall revenue and operational results.

Swot Analysis for Divyadhan Recycling Industries IPO

Strengths

Weaknesses

Opportunities

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Company Details

Divyadhan Recycling Industries Limited

1803, Lodha Supremus,
Saki Vihar Road, Opp. Telephone Exchange
Powai, Mumbai City – 400072,

Phone: + 91- 8928434702

Email: [email protected]

Website: http://www.divydhan.in/

IPO Registar Details

Skyline Financial Services Private Ltd

Phone: 02228511022

Email: [email protected]

Website: https://www.skylinerta.com/ipo.php

FAQs

The key objectives of Divyadhan Recycling Industries IPO are:

  • To meet the Capital Expenditure.
  • To meet the General Corporate Purposes; and
  • To meet out the Issue Expenses.

Narnolia Financial Services Ltd is the book-running lead managers for the Divyadhan Recycling Industries IPO.

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