Sunlite Recycling Industries IPO: Review, Valuation, Date & GMP

Sunlite Recycling Industries IPO - Complete Overview

Sunlite Recycling Industries IPO an SME IPO is a book-built issue of Rs.30.24 crore by Sunlite Recycling Industries Limited that was founded in 2012 and uses recycled copper waste to create copper wires, conductors, earthing wires, earthing strips, and other products for the electronics, power production, transmission, and distribution industries. By client requirements, the company's product portfolio offers a diverse selection of products in various grades, thicknesses, widths, and standards for all kinds of copper products.

At present, the company has a manufacturing and registration office in Kheda, Gujarat. The facility spans over 12,152 sq.mts and is equipped with more than 20 machines that enable the company to produce an extensive array of copper products.

The company plans to launch its SME IPO on August 12, 2024. 

 

Sunlite Recycling Industries IPO Overview

The Rs.30.24 crore Sunlite Recycling Industries Limited IPO consists of a fully fresh issue of 28.8 lac Shares, of which 35% are allotted to retail investors, 50% to institutional investors, and 15% to non-institutional investors.

This SME IPO is available for purchase from August 12 - August 14, 2024. The expected listing date is Tuesday, August 20, 2024, on NSE and SME. Sunlite Recycling Industries IPO price band is between Rs.100 to Rs.105 for each Share.

To open a demat account and apply for the IPO, Click Here.

Company Financial

The company's profit after tax (PAT) climbed by 58.92 %, while revenue increased by 1.4% over the fiscal years ending 31 March 2024, and 31 March 2023.

Below is the synopsis of the company's financial data for the period between 31 March 2024, and 31 March 2023.

• The total revenue of the company is Rs.116,655.09 lac.

• The net worth of the company is Rs.2,003.90 lac.

• The total assets of the company are Rs.6,321.24 lac.
  
  

(Amount in Lac)

Period	31 Mar 2024	31 Mar 2023	31 Mar 2022
Total Assets	6,321.24	7,162.56	4,802.05
Total Revenue	116,655.09	115,039.91	93,791.80
PAT	890.36	560.27	426.03
Net Worth	2,003.90	362.08	1,158.58
Total Reserves & Surplus	1,203.90	312.08	-
Borrowing	3,491.74	4,646.82	2,532.38

 

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

Net Cash Flow In Multiple Activities	31 Mar 2024	31 Mar 2023	31 Mar 2022
Net Cash Flow Operating Activities	1,128.99	238.16	-787.74
Net Cash Flow Investing Activities	-173.16	-324.60	-228.83
Net Cash Flow Financing Activities	-1,151.71	284.89	640.57

 

Product-wise Revenue Breakdown

(Amount in lac)

Particular	FY 2023-2024	FY 2022-2023	FY 2021-2022
Copper Rod	1,04,562.48	1,02,706.31	83,209.07
Copper Wire	7,187.97	8,335.16	6,667.98
Copper Strips	2,266.71	1,658.08	2,707.68
Others	2609.92	2,319.34	1134.58

 

Geography-wise Revenue Breakdown

(Amount in lac)

State	31 Mar 2024	31 Mar 2023	31 Mar 2022
Gujarat	53,329.50	51,275.98	35,718.51
Dadra and Nagar Haveli	25,068.26	22,178.12	8,408.67
Maharashtra	14,870.54	17,861.43	12,000.75
Telangana	10,571.62	10,615.85	25,805.90
Madhya Pradesh	4,394.53	5,349.60	4,839.38

 

The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Financing of capital costs related to the installation of new machinery and plants.

• Repayment and/or prepayment of some of the company's borrowed funds, either in full or in part.

• General Corporate Purposes.

 

Peers of Sunlite Recycling Industries Limited

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E (x)
Rajnandini Metal Limited	10	0.55	24.71
Bhagyanagar India Ltd.	2	14.29	7.67

 

Evaluation

The price of this IPO is Rs.100 to Rs.105 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.19.35 from the last year, the resulting P/E ratio is 5.42x.

Considering the weighted EPS of Rs.16.12 for the last three years, the P/E ratio is 6.51x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 16.19x.

Particulars	P/E Ratio (x)
Highest	24.71
Lowest	7.67
Average	16.19

In simple words, the P/E ratio of Sunlite Recycling Industries Limited IPO (5.42x and 6.51x), compared with the industry’s average P/E of 16.19x, has an undervaluation. Hence the price of the Share seems fairly priced for the investors when considered based on the average P/E ratio of the industry. 

 

IPO's Strengths 

• Strong offering with a wide variety of copper goods.

• Strict quality control methods guarantee uniform product quality.

• Income from various Indian regions.

• Skilled senior management
  
  

IPO’s Weaknesses

• The manufacturing expenses are susceptible to changes in the pricing of raw materials, particularly copper scrap. The company doesn’t yet have any long-term supply contracts in place for the raw materials it requires.

• When it comes to obtaining raw materials, the company is mostly dependent on a small number of important suppliers located in a constrained geographic area.

• Its activities in specific geographic regions account for the majority of its sales, so any unfavorable developments there could have a negative effect on its revenue and operational performance.

• Aluminum wires can replace copper cables since they are lighter and less expensive than copper. However, this could harm the company's primary business and reduce overall profitability.

 

Sunlite Recycling Industries IPO GMP Today

Sunlite Recycling Industries Limited IPO latest GMP is Rs.79.

IPO Timetable (Tentative)

The IPO is scheduled from August 12 to August 14, 2024, with allotment on August 16, refund initiation on August 19, and listing on August 20, 2024.

Events	Date
IPO Opening Date	August 12, 2024
IPO Closing Date	August 14, 2024
IPO Allotment Date	August 16, 2024
Refund Initiation	August 19, 2024
IPO Listing Date	August 20, 2024

 

Sunlite Recycling Industries IPO Details 

The IPO with a Face Value of Rs.10 per Share is set to start on August 12, 2024, close on August 14, 2024, and offer a total issue size of 2,880,000 Shares (aggregating up to Rs.30.24 Cr) comprising a whole fresh issue size of 2,880,000 Shares (totaling up to Rs.30.24 Cr).

IPO Opening & Closing Date	August 12, 2024 to August 14, 2024
Face Value	Rs.10 per Share
Issue Price	Rs.100 to Rs.105
Lot Size	1200 Shares
Issue Size	2,880,000 Shares (aggregating up to Rs.30.24 Cr).
Offer for Sale	NA.
Fresh Issue	2,880,000 Shares (aggregating up to Rs.30.24 Cr).
Listing at	NSE, SME
Issue Type	Book Built Issue IPO
Registrar	Cameo Corporate Services Limited

 

 

Sunlite Recycling Industries IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1200 Shares) amounting to Rs.126000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2400 Shares) amounting to Rs.252000.

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
HNI (Min)	2 Lots

 

Sunlite Recycling Industries IPO Reservation

Institutional Portion	50%
Retail Portion	35%
Non-Institutional Portion	15%

 

Promoters And Management of Sunlite Recycling Industries Limited

• Nitin Kumar Heda

• Prahladrai Ramdayal Heda

• Khushboo Manishkumar Heda 

Pre-Issue Promoter Shareholding	100%
Post-Issue Promoter Shareholding	73.53%

 

 

IPO Lead Managers

• Hem Securities Limited
  
  

Dividend Policy

The company has not declared dividends in any financial year.

Conclusion

The company has experienced negative cash flow in operating, financing, and investing activities in the last few fiscal years. To achieve its goals, the company is currently launching an IPO for the general public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable data about the company's insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

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.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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