Greenhitech Ventures Ltd. IPO: Review, Valuation, Date & GMP

Greenhitech Ventures Limited IPO  - Complete Overview

Established in 2011, Greenhitech Ventures Limited specializes in the trading of various petroleum-based products tailored to different industries' needs. This encompasses the supply of biofuels, bitumen, light-density oils, furnace oils, among others. Additionally, the company is actively involved in operation and maintenance as a job worker for ethanol manufacturing in government-owned distilleries. 

Greenhitech Ventures Limited offers comprehensive business solutions and services to fuel consumers and other industries utilizing alternative materials across India. The company's registered office is located in Bhelupura, Varanasi, Uttar Pradesh, India.

With a foundational commitment to "Effective, Efficient, and Economical" operations, the company is well-known in the Purvanchal belt of Uttar Pradesh, particularly for its supply of bio-diesel.

Greenhitech Ventures Limited IPO Overview

Greenhitech Ventures Limited IPO date is slated to be open for subscription from April 12, 2024, to April 16, 2024. This BSE SME IPO follows a Fixed Price Issue IPO.

Greenhitech Ventures Limited IPO price is fixed at Rs.50 per share. 

The total issue size of this IPO amounts to Rs.6.30 Cr. The company has allocated shares 50% to retail investors, 50% to other investors.

 

Company Financial

Compared to the financial year ending March 31, 2023, and March 31, 2022, Greenhitech Ventures Limited has seen decreased in total assets, net worth, and total revenue. The profit after tax has decreased while the total borrowing increased.

(Amount in Lakhs)

Period	31 Jan 2024	31 Mar 2023	31 Mar 2022
Total Assets	2,677.75	2,708.06	3,188.77
Total Revenue	335.67	2,504.35	6,611.58
PAT	35.64	57.23	135.14
Net worth	456.64	315.45	322.45
Reserve & Surplus	112.64
Total Borrowings	431.71	347.07	150.14

 

The Objective of the Issue

The Net Proceeds from the Fresh Issue will be used to fulfilling the following objectives: 

1. To Meet Working Capital Requirement 

2. General Corporate Purpose 

Peers of Greenhitech Ventures Limited IPO

According to the DRHP of Greenhitech Ventures Limited, there are currently no listed companies in India engaged in the business of ethanol manufacturing as a job worker and trading of biofuels. Therefore, it is not feasible to provide a comparison of accounting ratios of the industry with the company.

Evaluation

The IPO is priced at Rs.50 per share.

Evaluation of P/E Ratio

• Considering the FY23 EPS of Rs 1.81 from the last year, the resulting P/E ratio is 27.62x.

• Taking into account the weighted EPS of Rs 2.59 for the last three years, the P/E ratio amounts to 19.31x.

Comparative Analysis with Listed Peers

• There is no listed peers of the company.

IPO's Strengths 

• Established client relationships

• Proficient and seasoned promoter and management expertise

• Business model designed for scalability

• Prompt order fulfillment

• Environmentally friendly product offerings

• Commitment to quality assurance and adherence to standards
  
  

IPO weaknesses 

• Potential resistance to change from current users of traditional fossil fuels.

• Initially focused on trading bio-diesel since inception, the company expanded its operations in the financial year 2022-23 to include operation and maintenance services for molasses/syrup-based distilleries, along with ethanol manufacturing in government-owned facilities.

• The company has faced negative cash flows in the past.

• A significant portion of the company's revenue is derived from its top ten customers.

• The ethanol manufacturing business experiences seasonal fluctuations in revenue, impacting a portion of the company's income.

• There have been fluctuations in both revenue from operations and profit margins of the company in previous years.
  
  

IPO GMP Today

The Latest GMP of Greenhitech Ventures Limited is Rs. 42.

Greenhitech Ventures Limited IPO timetable (Tentative)

Greenhitech Ventures Limited IPO is scheduled from April 12 to April 16, 2024, with allotment on April 18, refund initiation on April 19, and listing on April 22, 2024.

Events	Date
IPO Opening Date	April 12, 2024
IPO Closing Date	April 16, 2024
IPO Allotment Date	April 18, 2024
Refund initiation	April 19, 2024
IPO Listing Date	April 22, 2024

 

Greenhitech Ventures Limited IPO Details 

Greenhitech Ventures Limited IPO, with a face value of Rs.10 per share, opens on April 12 and closes on April 16, 2024, offering 1,260,000 shares at Rs.50 per share, with a lot size of 3000 shares, aiming to raise Rs.6.30 Cr, and will be listed on BSE SME.

IPO opening & closing date	April 12, 2024 to April 16, 2024
Face value	₹10 per share
Issue Price	₹50 per share
Lot Size	3000 Shares
Price of 1 lot	₹150,000
Issue Size	1,260,000 shares (aggregating up to ₹6.30 Cr)
Fresh issue	1,260,000 shares (aggregating up to ₹6.30 Cr)
Listing at	BSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Skyline Financial Services Private Ltd

 

Greenhitech Ventures Limited IPO Lot Details 

For Greenhitech Ventures Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (3000 shares) at Rs.150,000 while for HNI investors, the minimum investment is 2 lots (6000 shares) at Rs.300,000.

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	1 lot
Minimum Lot Investment (HNI)	2 lot

 

Greenhitech Ventures Limited IPO Reservation

Other investor share Portion	50%
Retail investor share Portion	50%

Promoters and Management of Greenhitech Ventures Ltd.

• Mr. Naved Iqbal 

• Mr. Mohammad Nadeem

Pre-issue Promoter shareholding	100.00%
Post-issue Promoter shareholding	73.19%

 

Greenhitech Ventures Limited IPO Lead Managers

• Beeline Capital Advisors Pvt Ltd

Dividend Policy

Since its incorporation, the company has not declared any dividend on the Equity Shares. Future dividend payments will be depend upon the overall financial performance of the company.

 

 

Conclusion

The company operates in a competitive market with fluctuations in both top-line and bottom-line profits. Comparing to the previous financial year, there has been a decrease in revenue and net PAT as well. Investors can avoid this upcoming IPO.

 

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Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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