Hi-Green Carbon’s IPO Aims to Double Production Capacity

Newzdaddy Business Updates

Key Highlights

• Issue opening on Thursday, 21st September 2023 and closes on Monday, 25th September 2023
• Anchor book opens on 20th September, 2023
• Price Band of Rs. 71-75; to raise around Rs. 53 crore
• Rajkot-headquartered Company will offer 70,40,000 equity shares (F.V. Rs. 10 each) comprising a fresh issue of 59,90,000 equity shares and an offer for sale of 10,50,000 equity shares
• Issue proceeds to fund a new 100 TPD integrated plant in Dhule to expand capacity to 200 TPD post-expansion
• Issue to be listed on NSE Emerge
• Beeline Capital Advisors Private Limited is the book-running lead manager to the issue.

Hi-Green Carbon Ltd, a part of the Radhe Group of Energy in Rajkot, Gujarat, is gearing up to expand its manufacturing capacity. The company plans to double its production capacity from 100 tons per day (TPD) to 200 TPD by establishing a new integrated plant in Dhule, Maharashtra. Hi-Green Carbon already operates a modern, fully automated manufacturing facility spanning 56,500 square meters in Bhilwara, Rajasthan. With the addition of the new plant in Dhule, the company aims to tap into markets in western and southern India. It has secured a 21,500-square-meter plot of land for this project.

The forthcoming Initial Public Offering (IPO) is primarily aimed at financing this capacity expansion. The IPO subscription period is set to begin on Thursday, September 21, 2023, and will conclude on Monday, September 25, 2023. The anchor portion will open on Wednesday, September 20, 2023. In addition to funding the new project, the proceeds from the fresh share issue will be used for working capital needs and general corporate purposes.

Beeline Capital Advisors Private Limited will act as the book-running lead manager for the IPO, while Link Intime India Private Limited will serve as the registrar. The company’s shares will be listed on NSE Emerge.

Hi-Green Carbon Limited, a subsidiary of Radhe Group Energy, was initially founded by the Bhalodi and Makadia families in 2011. The company specializes in waste tyre recycling, utilizing continuous pyrolysis to convert end-of-life tyre pieces into energy components and raw materials. Its key products include Recovered Carbon Black (rCB) and Steel Wires (Raw Material Category), as well as Fuel Oil and Synthesis Gas (Energy Components Category). Notably, the company efficiently utilizes synthesis gas, a by-product of the pyrolysis process, to manufacture sodium silicate, commonly known as raw glass.

In FY2023, Hi-Green Carbon reported total revenues of Rs. 79.03 crore, a substantial increase from Rs. 51.13 crore in FY2022. The net profit for FY2023 amounted to Rs. 10.49 crore, compared to Rs. 3.68 crore in FY2022.

The company recently disclosed a price range of Rs. 71-75 per equity share for its IPO. The offering comprises 70.40 lakh equity shares (with a face value of Rs. 10 each) through the book-building route, including 59.90 lakh equity shares as a fresh issue and 10.50 lakh equity shares for sale.

The anchor portion will consist of 19.84 lakh equity shares, while market makers will offer 4.21 lakh equity shares. Non-institutional investors (NIIs), qualified institutional buyers (QIBs), and retail investors will have access to 9.94 lakh, 33.07 lakh, and 23.17 lakh equity shares, respectively. The lot size for investors will be 1600 shares. The pre-IPO ownership by the Promoter and Promotor Group stands at 100%, which will reduce to 71.83% after the issue.