Hi-Green Carbon Limited IPO - Review, Date & GMP Today

Hi-Green Carbon Limited - Complete Overview

Founded in 2011, Hi-Green Carbon Limited, originally incorporated as Shantol Green Hydrocarbons (India), is primarily involved in the recycling of waste tires. The company's headquarter is located in Rajkot, Gujarat, and it is a part of the Radhe Group Energy, also based in Rajkot, Gujarat.

Hi-Green Carbon Limited operates its manufacturing plant using a continuous pyrolysis process, which is an uninterrupted method with automated feeding and discharging systems controlled by a program logic controller (PLC) system. This process is fully automated, requiring minimal human intervention.

The company's primary products fall into two categories: Recovered Carbon Black (rCB) and Steel Wires as part of the Raw Material Category, and Fuel Oil and Synthesis Gas as Energy components.

To maximize energy utilization, the company employs the synthesis gas, a byproduct of the pyrolysis process, for manufacturing sodium silicate, commonly known as raw glass.

Hi-Green Carbon adheres to the highest quality standards and complies with the strictest Environmental, Health, and Safety (EHS) regulations in the recycling industry. The company operates a modern, Supervisory Control and Data Acquisition (SCADA)-enabled integrated recycling plant at its manufacturing facility in Rajasthan.

The company's production facility in Rajasthan is equipped with the capacity to recycle 100 metric tons of waste tires per day. Additionally, Hi-Green Carbon has obtained certifications for Environmental Management (ISO 14001:2015), Occupational Health & Safety (ISO 45001:2018), Quality Management (ISO 9001:2015), Good Manufacturing Practice (GMP), and Restriction of Hazardous Substances (RoHS).

Hi-Green Carbon is planning to establish a new manufacturing plant in the Dhule district of Maharashtra, which will have the capacity to recycle 100 metric tons of waste tires per day. The company has already acquired a land parcel measuring 21,500 square meters for this purpose.

 

 

What does the company do?

Hi-Green Carbon Limited is engaged in the business of waste tyre recycling.

 

IPO Overview

The Hi-Green Carbon Limited IPO date is slated to be available for subscription from September 21, 2023, through September 25, 2023. It is anticipated that this SME IPO will be listed on the NSE SME platform on October 4, 2023. This upcoming SME IPO follows the Book Built Issue model.

The Hi-Green Carbon Limited IPO price is set between Rs. 71 to Rs. 75 per share. Each lot of this issue comprises 1600 shares, and retail investors have the option to bid for a maximum of 1 lot.

 

Hi-Green Carbon Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	21 September 2023
IPO Closing Date	25 September 2023
IPO Allotment Date	28 September 2023
Refund initiation	29 September 2023
IPO Listing Date	4 October 2023

 

Hi-Green Carbon Limited IPO Details

IPO Opening & Closing Date	21 September to 25 September 2023
Face value	Rs.10 per Share
Issue Price	Rs.71 to Rs.75 per Share
Lot Size	1600 Shares
Price of 1 lot	Rs.120,000
Issue Size	7,040,000 shares (aggregating up to Rs. 52.80 Cr)
Offer for sale	1,050,000 shares of Rs.10 (aggregating up to Rs. 7.88 Cr)
Fresh issue	5,990,000 Shares (aggregating up to Rs. 44.93 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Pvt. Ltd.

 

Hi-Green Carbon Limited IPO Lot Details

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

 

Hi-Green Carbon Limited IPO Reservation

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

 

Company Financial

Amount in Lakhs

Period	FY - 21	FY - 22	FY - 23
Total Assets	3310.91	3424.36	4387.83
Total Revenue	2429.39	5113.95	7903.90
PAT	9.59	367.95	1084.78
Net Worth	806.28	1174.23	2259.02
Reserve & Surplus	-1093.72	-725.77	359.02
Total Borrowings	1783.10	1586.70	1362.19

 

Revenue bifurcation of the issuer company

(Amount in Lakhs)

Nature of Sale	FY 23	FY 22	FY 21
Domestic Sale	7,535.52	4,899.67	2,370.08
International Sale	316.89	211.03	57.01
Total Sales	7,852.41	5,110.69	2,427.09

 

Product-wise Revenue Bifurcation

(Amount in Lakhs)

Name of Product	FY 23	FY 22	FY 21
Recovered Carbon Black	1,731.86	1,076.59	667.99
Fuel Oil	3,676.53	2,389.20	1,063.49
Sodium Silicate Glass	2,432.59	1,628.29	671.00
Steel Scrap and other	11.43	16.61	24.62
Total Sales	7,852.41	5,110.69	2,427.09

 

Domestic Revenue Bifurcation

(Amount in Lakhs)

Name of State	FY 23	FY 22	FY 21
Himachal Pradesh	11.93	10.72	9.22
Punjab	37.03	-	0.70
Uttarakhand	27.49	-0.18	28.70
Haryana	242.01	448.33	170.97
Delhi	66.39	68.03	36.41
Rajasthan	6,008.17	3,336.05	1,678.90
Uttar Pradesh	83.25	184.59	37.15
West Bengal	-	-	2.80
Madhya Pradesh	127.45	208.40	-
Gujarat	638.36	375.55	247.63
Dadra & Nagar Haweli and Daman & Diu	13.19	14.93	-0.30
Maharashtra	173.50	110.33	76.14
Tamil Nadu	106.76	142.92	81.76
Total Domestic Sale	7,535.52	4,899.67	2,370.08

 

Export Revenue Bifurcation

(Amount in Lakhs)

Name of Country	FY 23	FY 22	FY 21
Sri Lanka	316.89	207.72	18.13
State of Qatar	-	3.31	-
Thailand	-	-	38.88
Total Exports Sale	316.89	211.03	57.01

 

Objective of the Issue

The company intends to allocate the funds for the following objectives:

• Establishment of a new manufacturing unit in Maharashtra.
• Fulfillment of working capital needs.
• General corporate purposes.
• Covering public issue expenses.

 

Promoters and Management of Hi-Green Carbon Limited

M/s. RNG Finlease Private Limited, Mr. Amitkumar Hasmukhrai Bhalodi, Dr. Shaileshkumar Vallabhdas Makadia, Mrs. Krupa Chetankumar Dethariya, Mrs. Radhika Amitkumar Bhalodi, Mrs. Shriyakumari Shaileshkumar Makadia, and Mr. Koosh Chetanbhai Dethariya are the promoters of the company.

Pre-issue Promoter Shareholding	100.00%
Post-issue Promoter Shareholding	71.83%

 

Peer Comparison

As per the DRHP, the company does not have any publicly traded peers that are directly comparable to it.

 

IPO's Valuations

With the Hi-Green Carbon Limited IPO price range set at Rs.71 to Rs.75 per share and an EPS of Rs.5.71, the PE ratio for the IPO valuation, considering the upper price band, stands at approximately 13.13.

 

Dividend Policy

According to the Hi-Green Carbon Limited IPO DRHP, the company has not distributed any dividends in the past, and any prospective dividend payments will be contingent upon the company's financial health.

 

IPO's Strengths 

• Proficient Promoter and Management Team with Extensive Expertise.
• Strategically Positioned Manufacturing Facility.
• Cutting-edge technology and Stringent Quality Assurance.
• Consistent Demand and Wide Application of Product.

 

IPO weaknesses 

• The company's promoters are currently involved in ongoing legal disputes and claims.
• Both the company and its promoters have experienced previous instances of income tax payment defaults and have outstanding income tax obligations.
• The company relies on a limited number of customers for its sales.
• A significant portion of the company's revenue is closely tied to its operations in the geographical region of the state of Rajasthan.
• The company has secured credit facilities from banks, which are subject to specific restrictive conditions.
• The company has recorded net losses in the past.
• The company has obtained unsecured loans that are repayable on demand.
• In the past, the company has not fully complied with certain provisions of the Companies Act.
• Failure to comply with amendments to Safety, Health, and Environmental laws and other applicable regulations may have adverse effects on the company's financial status.
• The company requires various approvals and/or licenses in the ordinary course of its business operations.
• The company faces fluctuations in foreign currency exchange rates.

 

 

IPO GMP Today

Latest GMP of Hi-Green Carbon SME IPO is Rs. 50.

 

Conclusion

Investing in Hi-Green Carbon presents a promising opportunity for investors in the renewable sector. The company is demonstrating robust financial performance, and its plans for capacity expansion offer significant growth potential. Investors may want to consider participating in the offering after conducting a thorough analysis.

 

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 RHP.

 

 

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