Divyadhan Recycling Industries shares list at 31% on the NSE SME platform, hit upper circuit after market debut; check details

Divyadhan Recycling Industries Ltd. made a strong debut on the NSE SME platform on Friday, with its shares listing at a premium of 31% over the issue price. The company's shares opened at ₹84 per share, reflecting gains of 31% over the issue price of ₹64 per share.

The stock rose further by 5% to hit the upper circuit at ₹88.20 per share on investors' buying. Shares of the company were stuck in the upper circuit at 11 a.m.

According to exchange data, more than 15.4 lakh shares of the company changed hands on the bourse. The traded value was ₹13.11 crore. The market valuation stood at ₹126.19 crore.

Divyadhan Recycling Industries manufactures Recycled Polyester Staple Fibre (R-PSF) and recycled pellets. R-PSF is made from used PET bottles, such as soda, water, and Coke bottles, and other post-consumer PET bottles.

It has a manufacturing unit in Solan, Himachal Pradesh, with a total capacity of 8,030 tonnes per annum for fibre and 4,320 tonnes per annum for pellets.

Divyadhan Recycling Industries launched its public offer on September 26 to raise ₹24.17 crore from public investors. The book-building IPO comprises a fresh issue of 37.76 lakh shares and no offer-for-sale component. The company fixed the price band at ₹60 to ₹64 per share. The minimum lot size for retail investors was 2,000 shares, requiring a minimum investment of ₹1,28,000.

At the close of bidding on September 30, the IPO was booked 41 times due to strong bidding by non-institutional and retail investors.

Divyadhan Recycling Industries' public offer was booked 32.43 times in the retail category. Retail individual investors placed bids for over 4.06 crore shares against 12.52 lakh shares on offer.

The Non-Institutional Investors category was booked 76.4 times. NIIs placed applications for more than 4.11 crore shares against 5.38 lakh shares on offer.

Qualified Institutional Buyers (QIBs) placed bids for over 2.1 crore shares against 7.16 lakh shares on offer. The QIB portion was booked 29.39 times.

The company finalised the allotment of the shares on October 1 and initiated refunds and credit of shares to demat accounts on October 3.

The company will use the IPO proceeds to meet its working capital needs and for other general corporate purposes.

The company reported revenue from operations of ₹59.12 crore for the year ended on March 31, 2024, against ₹58.15 crore in the year ended on March 31, 2023. Profit after tax was ₹237.8 lakh in FY 2023-24 against ₹ 216.18 lakh in FY 2022-23.