Hi-Green Carbon IPO to open this week;looks to raise funds for doubling capacity

  • 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, the flagship company of Rajkot-based Radhe Group of Energy, will double its manufacturing capacity from 100 TPD to 200 TPD with the commissioning of new integrated plant at Dhule, Maharashtra. The company already has a 100 TPD modern, integrated, fully automated manufacturing facility spread over 56,500 sq. mtrs in Bhilwara, Rajasthan. Post its successful commissioning of a new plant at Dhule; the company will command more significant access to further markets in western and southern India. The company has already acquired land admeasuring 21,500 sq. meters for the project.

The capacity expansion is the main object of its upcoming IPO, which will open for subscription on Thursday, 21st September 2023 and close on Monday, 25th September 2023. The Anchor portion will open on Wednesday, 20th September, 2023. Apart from setting up a new project, the proceeds of the fresh issue of shares will be utilised for working capital requirements and other general corporate purposes.

Beeline Capital Advisors Private Limited is the book-running lead manager to the offer, and Link Intime India Private Limited will be the registrar to the offer. The shares of the company will be listed on NSE Emerge.

Hi-Green Carbon Limited is a part of Radhe Group Energy, based in Rajkot, Gujarat, and was initially promoted by Amitkumar Hasmukhrai Bhalodi and Dr Shaileshbhai Makadia family in 2011. Hi-Green Carbon is engaged in the business of waste tyre recycling. It follows continuous pyrolysis to process the end-of-life tyres (ELTs) pieces to produce energy components and raw materials. Its major products include Recovered Carbon Black (rCB) and Steel Wires under the Raw Material Category, Fuel Oil and Synthesis Gas under the energy components category. Being highly energy efficient, the company uses the said synthesis gas, produced as a by-product of the pyrolysis process, for manufacturing sodium silicate, commonly known as raw glass.

Hi-Green Carbon reported a total revenue of Rs. 79.03 crore in FY2023, compared to Rs. 51.13 crore in FY2022. Net profit stood at Rs. 10.49 crore in FY2023, compared to Rs. 3.68 crore in FY2022.

The company recently announced a price band of Rs. 71-75 per equity share, and the shares of the company will be listed on NSE Emerge. The company will offer 70.40 lakh equity shares (face value of Rs 10/- each) through the book-building route – comprising a fresh issue of 59.90 lakh equity shares and an offer for sale of 10.50 lakh equity shares.

The Anchor portion will comprise 19.84 lakh equity shares, while the Market maker will account for 4.21 lakh equity shares. The NIIs, QIBs and Retail portions will account for 9.94 lakh, 33.07 lakh and 23.17 lakh equity shares, respectively. The lot size will be 1600 shares. The pre-IPO shareholding of the Promoter and Promotor Group stands at 100%, which will reduce to 71.83% post-issue.

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