Sunlite Recycling Industries shares list at 90% premium on NSE Emerge; check details

Keeping up with the trend, another small and medium enterprise (SME) Sunlite Recycling Industries Ltd started its trading journey on a solid note today. Shares of the recycled copper products manufacturer listed at a 90% premium on the NSE SME platform, Emerge, on Tuesday, almost doubling investors’ wealth.

The Sunlite Recycling Industries stock opened the session at ₹199.5 apiece compared to its initial public offering (IPO) price of ₹105 per share. Within minutes of opening, the stock hit the 5% upper circuit limit at ₹209.45 apiece.

As the minimum bid quantity in the Sunlite Recycling Industries IPO was 1,200 shares, successful bidders who were allotted shares in the issue would have been sitting on a profit of at least ₹1.13 lakh (₹94.50 x 1,200) as soon as trading began in the stock.

The ₹30.24-crore Sunlite Recycling Industries IPO was open for subscription between August 12 and August 14. During the three-day bidding period, the issue was oversubscribed 282 times.

The company informed that it had received applications for 54.1 crore equity shares against 19.13 lakh shares on offer.

The category reserved for non-institutional investors (NIIs) was the most in demand, getting oversubscribed by 584 times. The retail investors’ portion was overbooked by 252 times, while the quota reserved for qualified institutional buyers saw an oversubscription of 109 times.

The Sunlite Recycling Industries IPO was a 100% book-built issue that comprised an entirely fresh issue of 28.8 lakh shares. The price band for the issue was fixed at ₹100 to ₹105 per share, while the lot size for an application was 1,200 shares.

Ahead of the launch of the IPO, Sunlite Recycling Industries had also raised ₹8.59 crore in its anchor investor round. The company on August 9 finalised allocation of 8.18 lakh shares to a total of seven anchor investors at a price of ₹105 per share.

The list of anchor investors included names like Eminence Global Fund PCC- Eubilia Capital Partners Fund, AG Dynamic Funds Ltd, Chanakya Opportunities Fund I, Finavenue Capital Trust- Finavenue Growth Fund, Religo Commodities Ventures Trustreligo Commodities Ventures Fund, Shine Star Build-Cap Pvt. Ltd and Vijit Growth Fund.

Of the funds raised through the IPO, Sunlite intends to utilise ₹4.05 crore to fund the capital expenditure towards the installation of new plant and machinery at its facility in Kheda (Gujarat). The company has also proposed to use ₹15.8 crore for repayment and or pre-payment, in full or part, of certain borrowings availed by it. The company’s total outstanding fund-based borrowings amounted to ₹31.04 crore. The remaining funds would be used for general corporate purposes.

Established in 2012, Sunlite Recycling Industries manufactures copper rods and wires, copper earthing wires, copper earthing strips, copper conductors, copper wire rods, etc. by recycling copper scrap for power generation, transmission, distribution and electronics industries.

The company has a registered office and manufacturing facility in Kheda with a total area of approximately 12,152 square metres and over 20 machines for manufacturing a wide range of copper products.