Hi-Green Carbon Ltd, a company that recycles waste tyres into valuable products, has launched its initial public offering (IPO) on September 21. The IPO is open for subscription till September 25 and is expected to list on the NSE SME platform on October 4.
If you are interested in investing in this IPO, here are some key details you should know:
What does Hi-Green Carbon do?
Hi-Green Carbon Ltd is a part of the Radhe Group of Energy, which has 15 years of experience in processing waste hydrocarbons. The company specializes in producing rCB (Recovered Carbon Black), which is a raw material used in various industries such as rubber, plastics, paints, and ink.
The company has developed an indigenous and patented technology to convert waste tyres into rCB using a continuous process. The company operates one of the world’s largest plants with a capacity of 100 TPD (tonnes per day) at Bhilwara, Rajasthan.
The company claims that its rCB has superior quality and lower environmental impact than conventional carbon black. The company also produces other by-products such as pyrolysis oil, steel wire, and gas from the waste tyre recycling process. The company claims that its process is eco-friendly, energy-efficient, and cost-effective.
Hi-Green Carbon Financial Report(Restated Standalone)
| Period Ended | 31 Mar 2021 | 31 Mar 2022 | 31 Mar 2023 |
| Assets | 3,310.91 | 3,424.36 | 4,387.83 |
| Revenue | 2,429.39 | 5,113.95 | 7,903.90 |
| Profit After Tax | 9.59 | 367.95 | 1,084.78 |
| Net Worth | 806.28 | 1,174.23 | 2,259.02 |
| Reserves and Surplus | -1,093.72 | -725.77 | 359.02 |
| Total Borrowing | 1,783.10 | 1,586.70 | 1,362.19 |
Hi-Green Carbon IPO Details
The Hi-Green Carbon IPO is an SME IPO, which means that it is meant for small and medium enterprises. The IPO size is ₹52.80 crore, which comprises a fresh issue of 59.9 lakh equity shares worth ₹44.93 crore and an offer for sale (OFS) of 10.5 lakh shares worth ₹7.88 crore.
The price band of the IPO is ₹71 to ₹75 per share. The minimum lot size is 1,600 shares and the minimum investment amount is ₹120,000. The company plans to use the net proceeds from the fresh issue for setting up a new plant with a capacity of 200 TPD at Bhilwara, Rajasthan and for general corporate purposes.
The book running lead manager for the IPO is Beeline Capital Advisors Pvt Ltd and the registrar is Link Intime India Private Ltd.
Hi-Green Carbon IPO GMP and Subscription Status
The Hi-Green Carbon IPO has received a strong response from the investors on the second day of the bidding process. As of Friday, September 22, the IPO was subscribed 25.46 times.
The retail category was oversubscribed by 36.56 times, while the qualified institutional buyers (QIB) category and the non-institutional investors (NII) category were subscribed by 10.86 times and 19 times respectively.
The grey market premium (GMP) of the Hi-Green Carbon IPO was also high at ₹60 per share ( as of 25 September ), as per market observers. This means that the shares were trading at a premium of ₹60 over the issue price in the unofficial market.
Based on the GMP and the issue price, the estimated listing price of the Hi-Green Carbon shares could be ₹135 per share, which is 80% higher than the issue price.
Hi-Green Carbon IPO Anchor List
| Anchor Name | Shares Allocated | Bid Price | Anchor Portion | Total Allocated Amount |
|---|---|---|---|---|
| Moneywise Financial Services Pvt. Ltd. | 233600 | ₹75 | 11.77% | 1.75 Cr |
| Resonance Opportunities Fund | 419200 | ₹75 | 21.13% | 3.14 Cr |
| Rajasthan Global Securities Pvt. Limited | 134400 | ₹75 | 6.77% | 1.01 Cr |
| Nav Capital Vcc- Nav Capital Emerging Star Fund | 388800 | ₹75 | 19.6% | 2.92 Cr |
| LRSD Securities Private Limited | 134400 | ₹75 | 6.77% | 1.01 Cr |
| Morgan Stanley Asia (Singapore) PTE | 267200 | ₹75 | 13.47% | 2 Cr |
| BofA Securities Europe SA – ODI | 272000 | ₹75 | 13.71% | 2.04 Cr |
| LC RADIANCE FUND VCC | 134400 | ₹75 | 6.77% | 1.01 Cr |
Should you invest in Hi-Green Carbon IPO?
Hi-Green Carbon IPO is an attractive opportunity for investors who are looking for a unique and innovative business in the green energy sector. The company has a strong track record of growth and profitability, as well as a competitive edge in terms of technology and quality.
The company also operates in a niche market with high entry barriers and low competition. The demand for rCB is expected to grow in the future as more industries adopt eco-friendly alternatives to conventional carbon black.
However, there are also some risks involved in investing in Hi-Green Carbon IPO. The company depends on a single product and a single plant for its revenue generation. Any disruption or delay in production or supply could adversely affect its financial performance.
The company also faces regulatory uncertainties and environmental challenges related to its waste tyre recycling process. The company may have to comply with changing norms and standards regarding emission control, waste management, and safety measures.
Moreover, the valuation of the Hi-Green Carbon IPO seems to be on the higher side compared to its peers in the industry. Also, investors should also be aware of the risks and challenges involved in investing in SME IPOs, such as low liquidity, high volatility, and limited information disclosure.
Therefore, investors should weigh the pros and cons of investing in Hi-Green Carbon IPO carefully before making their decision. They should also keep an eye on the subscription status, GMP, and listing date of the IPO to get an idea of its market sentiment and performance.
Disclaimer:
The information provided in this article is for educational or informational purposes only and does not constitute professional financial or investment advice. The opinions expressed in this article are those of the author and do not necessarily reflect the views of Stock Market Release or its affiliates. The information in this article is based on sources that we believe to be reliable, but we do not guarantee its accuracy or completeness. The past performance of any investment or strategy does not guarantee future results or returns. Investing involves risks and you may lose some or all of your money. You should not rely solely on this article to make any investment decisions. You should do your own research and consult a qualified financial advisor before investing.
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