Divyadhan Recycling Industries Limited (DRIL) was established by seasoned executives from the textiles industry with expertise in yarn spinning and home textiles. The company's vision is to create a state-of-the-art manufacturing facility that adheres to the highest quality standards, which was notably absent in the Indian recycled market. DRIL has successfully positioned itself as a premium supplier of fiber for fiber-fill and carpet yarn applications in India.

The Divyadhan IPO is a Book Built Issue amounting to ₹24.16 Crores, entirely consisting of a Fresh Issue of 37.76 Lakh Shares. The subscription period is from September 26, 2024, to September 30, 2024. Allotment is expected to be finalized around October 01, 2024, with shares tentatively scheduled to be listed on the NSE SME by October 04, 2024.

The share price band for the Divyadhan IPO is set between ₹60 and ₹64 per equity share, with a minimum lot size of 2,000 shares. Retail investors must invest a minimum of ₹1,28,000, while High-Net-Worth Individuals (HNIs) need to invest at least ₹2,56,000 for 4,000 shares.

NARNOLIA FINANCIAL SERVICES LIMITED is the book-running lead manager for this IPO, while SKYLINE FINANCIAL SERVICES PRIVATE LIMITED acts as the registrar. Kantilal Chhaganlal Securities Private Limited will serve as the market maker for Divyadhan.

Live Subscription Status

As of 05:47 PM on September 30, 2024, the live subscription status for the Divyadhan IPO shows a strong interest, with the IPO subscribed 37.97 times on its third day.

Anchor Investors Report

Divyadhan Recycling Industries has raised ₹6.84 Crore from anchor investors at a price of ₹64 per share, allocating 10,70,000 equity shares. This reflects confidence from institutional investors in the company's prospects.

Allotment Date and Procedure

The allotment date for the Divyadhan IPO is scheduled for October 01, 2024. Investors can check their allotment status by following these steps:

Navigate to the IPO allotment status page.

Select Divyadhan Recycling Industries Limited IPO from the dropdown list.

Enter your application number, PAN, or DP Client ID.

Submit the details to check your allotment status.

Objectives of the IPO

The proceeds from the Fresh Issue will be utilized for the following objectives:

₹1,703.71 Lakhs to meet capital expenditure.

General corporate purposes.

To cover issue expenses.

Financial Performance Overview

Divyadhan Recycling Industries has shown stable financial performance, with revenue figures for Fiscal 2024, Fiscal 2023, and Fiscal 2022 recorded at ₹5,912.88 Lakhs, ₹5,815.51 Lakhs, and ₹5,981.52 Lakhs, respectively. The EBITDA for these years was ₹570.18 Lakhs, ₹506.67 Lakhs, and ₹289.64 Lakhs, indicating an upward trend. The Profit After Tax for these years was ₹237.80 Lakhs, ₹216.18 Lakhs, and ₹52.91 Lakhs, showing consistent growth.

For the Divyadhan Recycling Industries IPO, the company is offering shares with a pre-issue EPS of ₹2.41 and a post-issue EPS of ₹1.66. The pre-issue P/E ratio stands at 26.55x, while the post-issue P/E ratio is 38.50x. The company's Return on Capital Employed (ROCE) for FY24 is 20.76%, and the Return on Equity (ROE) is 18.42%, suggesting that the IPO is fully priced.

Investment Recommendation

The Grey Market Premium (GMP) for Divyadhan Recycling Industries indicates potential listing gains of 0%, which may deter investor interest. Given the company's financial performance and valuation metrics, we recommend that investors avoid the Divyadhan Recycling Industries Limited IPO for listing gains or long-term investment purposes.

In conclusion, investors should carefully evaluate their options before participating in the Divyadhan IPO. 

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