Greenhitech Ventures is set to launch its IPO, offering a fixed price issue worth Rs 6.30 crores, exclusively comprising 12.6 lakh fresh shares.

The subscription for this IPO commences on April 12, 2024, and concludes on April 16, 2024. Allotment results are anticipated by April 18, 2024, with the company expected to list on BSE SME by April 22, 2024.

Priced at ₹50 per share, the minimum application lot size stands at 3000 shares, requiring a minimum investment of ₹150,000 for retail investors and 2 lots (6,000 shares) or ₹300,000 for HNIs.

The book running lead manager is Beeline Capital Advisors Pvt Ltd, with Skyline Financial Services Private Ltd acting as the registrar, and Spread X Securities serving as the market maker for Greenhitech Ventures IPO.

The Issue includes a public Issue of 12,60,000 Equity Shares of our Company at an Issue Price of ₹50/- per Equity Share.

The Net Proceeds will be utilized towards the following objects:

1. To Meet Working Capital Requirement
2. General Corporate Purpose

Listing will enhance corporate image and visibility of brand name. Along with this It will also provide liquidity to the existing shareholders creating a public trading market for the Equity Shares of the Company.

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About Greenhitech Ventures Limited

The company is engaged in trading of various petroleum-based products (biofuels, bitumen, light density oils, furnace oils etc) for the different categories of industries based on their requirement. It is also engaged in Operation & Maintenance as Job worker for Ethanol manufacturing in Government owned distilleries, Company is not having its owned manufacturing unit.

Company bids for tender of Government owned distillery for Operation & Maintenance as Job worker for Ethanol manufacturing. After receipt of tender, company runs the ethanol plant in government owned distillery and manufacture ethanol and transfer all ethanol manufactured to the respective distillery.

Company is one of very few players eligible for Operation and Maintenance of ethanol production in Government managed distilleries with capability of running an ethanol distillation in units which run on fuel mode of both ethanol plus grain based raw material.

 The oil and gas sector is among the eight core industries in India and plays a major role in influencing the decision-making for all the other important sections of the economy. India’s economic growth is closely related to its energy demand, therefore, the need for oil and gas is projected to increase, thereby making the sector quite conducive for investment. India retained its spot as the third-largest consumer of oil in the world as of 2022.

According to the IEA (India Energy Outlook 2021), primary energy demand is expected to nearly double to 1,123 million tonnes of oil equivalent, as India's gross domestic product (GDP) is expected to increase to US$ 8.6 trillion by 2040. As of April 2022, India’s oil refining capacity stood at 251.2 MMTPA, making it the second-largest refiner in Asia. Private companies owned about 35% of the total refining capacity.

Crude oil consumption is expected to grow at a CAGR of 5.14% to 500 million tonnes by FY40 from 202.7 million tonnes in FY22. India ethanol market size was estimated at USD 2.27 billion in 2022. During the forecast period between 2023 and 2029, India ethanol market size is projected to grow at a CAGR of 9.16% reaching a value of USD 4.15 billion by 2029. The rising demand for biofuels is expected to lead to growth in the India ethanol market.

Risk associated to the issue:

Availability, Quality and Timely delivery are the key for the business: Any failure of suppliers to deliver the product in the necessary quantities, shortage of product or to adhere to delivery schedules would adversely affect business processes and ability to deliver orders on time.

Difficult to shift exiting users from conventional fossil fuels: Switching from existing conventional fossil fuel to biofuel may require users to make certain changes to their existing fuel feeding equipment such as furnace, stove etc. and other operating patterns and convenience.

Top 10 customers hold the revenue & Top 10 suppliers hold the raw material: Majorly top 10 customers hold 99% - 100% of revenue. Any change in the same may affect the revenue streams. The same is true for total purchases as well, top 10 suppliers hold 100% of total purchases, thus giving power to the supplier.

The business is slightly seasonal in our country: The ethanol manufacturing business is slightly seasonal in our country. This is due to the fact that distillery is shut down for period of rainy season, the timing and seasonality of weather impacts the business.

No long-term contracts: Business is conducted on a purchase order basis, depending on customer requirements for energy generation.

Require certain approvals or licenses: The company is governed by various laws and regulations for business. They are required to obtain and hold relevant licenses, approvals and permits at state and central government levels for doing business.