Organic Recycling Systems IPO - Review, Valuation, Date & GMP

Organic Recycling Systems Limited - Complete Overview

Established in 2008, Organic Recycling Systems Limited is an engineering firm specializing in environmental solutions and waste management services.

The company boasts a track record of successfully operating one of India's pioneering waste-to-energy (WTE) plants, based on anaerobic biomethanation technology.

The biomethanation technology employed by the company has garnered recognition as a promising solution in the National Master Plan issued by the Government of India. Additionally, Organic Recycling Systems Limited has established a Municipal Solid Waste (MSW) processing and disposal facility in Solapur, Maharashtra, designed to transform MSW into both electricity and compost.

The company operates across various business verticals, including the Build Own Operate Transfer (BOOT) model, the Engineering Procurement and Commissioning (EPC) model, and the supply of essential equipment. 

Its service portfolio encompasses EPC (Engineering, Procurement, and Construction) services in waste management, commissioning services, consultancy and advisory services in the waste management sector, project planning, construction, and management of waste management projects, laboratory services, and more.

ORS has pioneered and patented the DRY ANAEROBIC DIGESTION (DRYAD) technology, which possesses the capability to treat various types of waste. This innovation has been successfully validated through its application at the Solapur plant.

 

What does the company do?

Organic Recycling Systems Limited is an engineering firm with a primary emphasis on environmental solutions and the provision of waste management solutions.

 

 

IPO Overview

The Organic Recycling Systems IPO date is scheduled for September 21, 2023, and will remain open for subscription until September 26, 2023. This IPO follows a Fixed Price Issue model.

The total issue size for this upcoming SME IPO is Rs. 50.00 Crores. Out of this total, 50% of the shares are reserved for other investors, while the remaining 50% is allocated for retail investors.

The Organic Recycling Systems IPO price is fixed at Rs. 200 per share. Each lot of shares consists of 600 shares, and retail investors are eligible to bid for a maximum of 1 lot.

 

Organic Recycling Systems Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	21 September 2023
IPO Closing Date	26 September 2023
IPO Allotment Date	29 September 2023
Refund initiation	3 October 2023
IPO Listing Date	4 October 2023

 

Organic Recycling Systems Limited IPO Details 

IPO Opening & Closing Date	21 September to 26 September 2023
Face value	Rs.10 per Share
Issue Price	Rs. 200 per Share
Lot Size	600 Shares
Price of 1 lot	Rs.120,000
Issue Size	2,500,200 Shares (aggregating up to Rs. 50.00 Cr)
Offer for sale	NA
Fresh issue	2,500,200 Shares (aggregating up to Rs. 50.00 Cr)
Listing at	BSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Maashitla Securities Private Limited

 

Organic Recycling Systems Limited IPO Lot Details 

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

 

Organic Recycling Systems Limited IPO Reservation

Other Investors Share Portion	50%
Retail Investors Share Portion	50%

 

Company Financial

Amount in Lakhs

Period	FY - 21	FY - 22	FY - 23
Total Assets	10272.69	10669.35	11931.10
Total Revenue	1578.18	1756.67	2534.10
PAT	-449.37	-535.03	365.38
Net Worth	1343.88	808.86	2550.07
Reserve & Surplus	1298.11	763.08	2014.40
Total Borrowings	5449.89	5418.38	6981.41

 

Objective of the Issue

The company plans to allocate the Net Issue Proceeds for the following objectives:

• Reducing the total outstanding debt of the company.
• Funding general corporate initiatives.

 

Promoters and Management of Organic Recycling Systems Limited

The Promoter of the Company is Mr. Sarang Bhand.

Pre-issue Promoter Shareholding	30.14%
Post-issue Promoter Shareholding	20.35%

 

Peer Comparison 

No other publicly traded company closely matches the company in terms of its business model, size, and financials.

 

IPO's Valuations

With an IPO price of Rs. 200 per share and an EPS of Rs. 7.83, the PE ratio for the IPO valuation based on the issue price stands at 25.54.

 

Dividend Policy

According to the Organic Recycling Systems IPO DRHP, the company has not distributed any dividends in the past. The potential payment of dividends in the future will be contingent upon the company's financial performance.

 

IPO's Strengths 

• Established Technology and Demonstrated Proficiency.
• Diversification Across Various Business Verticals.
• Experienced Promoters and Management Team.
• Alignment with UN Sustainable Development Goals.
• Promising Market Opportunities.

 

IPO Weaknesses

• The company is currently involved in ongoing legal proceedings that encompass its subsidiaries, directors, and promoters.
• A significant portion of the company's business and revenue stream relies on municipal authorities.
• There is ongoing litigation regarding a financial claim against SBESPL, a crucial subsidiary of the company.
• The company has faced losses and negative cash flows in previous years.
• Mr. Suhas Bhand, a member of the Promoter Group, was implicated in a CBI case related to the issuance of Bank Guarantees, initially resulting in adverse orders against him.
• The inability to secure, sustain, or renew necessary statutory and regulatory permits and approvals for its operations could have substantial and adverse implications for the company's business.
• The company operates within a fiercely competitive industry.

 

 

IPO GMP Today

Organic Recycling Systems IPO GMP is not yet available.

 

Conclusion

Investing in India's waste management sector presents a promising opportunity for investors. This sector is experiencing significant growth, and Organic Recycling Systems Limited, equipped with advanced technology, actively participates in this industry. Additionally, the company has demonstrated strong financial performance in FY 23. Therefore, investors may find it worthwhile to consider applying for this IPO after evaluating all the aspects.

 

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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