Divyadhan Recycling Industries IPO Subscription Status

Divyadhan Recycling Industries' initial public offering (IPO) has garnered moderate investor interest, with subscription rates increasing steadily over the three-day period. Starting modestly on day one, the IPO witnessed a gradual increase in demand, resulting in a 7.58 times oversubscription by 11:12:01 AM on day three. This response indicates a fair market appetite for Divyadhan Recycling Industries' shares and sets the stage for its potential listing.

The IPO, which opened on 26th September 2024, has seen growth in investor participation across all categories. Divyadhan Recycling Industries attracted bids for 1,89,84,000 equity shares amounting to ₹121.50 crore.

The Retail Investors segment, in particular, has shown strong demand, followed by moderate interest from Non-Institutional Investors (NII) and Qualified Institutional Buyers (QIB).

Subscription Status of Divyadhan Recycling Industries IPO for Days 1, 2, and 3:

Note: Market Maker portion is not included in NII/HNI.

Here are the subscription details for Divyadhan Recycling Industries IPO as of Day 3 (30th September 2024, 11:12:01 AM):

Total Applications: 7,866

Note: The total amount is calculated based on the upper price of the issue price range.

Key Highlights:

• Divyadhan Recycling Industries IPO is currently subscribed 7.58 times, with strong demand from Retail Investors.
• Retail investors have shown significant interest, with a subscription ratio of 12.57 times.
• Non-Institutional Investors (NII) have demonstrated moderate enthusiasm, with a subscription ratio of 3.56 times.
• Qualified Institutional Buyers (QIB) have shown consistent interest, with a subscription ratio of 1.87 times.
• The overall subscription trend increases day-on-day, indicating growing investor confidence towards the issue.

Divyadhan Recycling Industries IPO - Day 2 Subscription at 4.89 Times

Key Highlights:

• On Day 2, Divyadhan Recycling Industries' IPO was subscribed 4.89 times, with strong demand from Retail Investors.
• Retail investors showed significantly increased interest with a subscription ratio of 7.99 times.
• Qualified Institutional Buyers (QIB) maintained their interest with a subscription ratio of 1.87 times.
• Non-Institutional Investors (NII) showed increased interest with a subscription ratio of 1.70 times.
• The overall subscription trend indicated building momentum, with retail category showing significant increased participation.

Divyadhan Recycling Industries IPO - Day 1 Subscription at 2.38 Times

Key Highlights:

• The IPO of Divyadhan Recycling Industries was subscribed 2.38 times on Day 1, with initial demand primarily from Retail Investors and QIBs.
• Retail investors showed early strong interest with a subscription ratio of 3.42 times.
• Qualified Institutional Buyers (QIB) showed significant initial interest with a subscription ratio of 1.86 times.
• Non-Institutional Investors (NII) showed minimal initial interest with a subscription ratio of 0.64 times.
• The first-day response laid a foundation for the remaining days of the IPO, with expectations of increased participation in the following days.

About Divyadhan Recycling Industries Limited:

Divyadhan Recycling Industries Limited, incorporated in May 2010, is a manufacturer of Recycled Polyester Staple Fibre (R-PSF) and Recycled Pellets, positioning itself in the sustainable materials market. The company operates two main business verticals: recycled fibre production from PET bottles and recycled pellet manufacturing. Its manufacturing facility, located in Himachal Pradesh, has a capacity of 8,030 metric tons per annum for fibre and 4,320 metric tons for pellets. Certified with ISO 14001:2015 for both Quality and Environmental Management Systems, Divyadhan emphasises eco-friendly practices in its operations. As of August 2024, the company employed 83 people. 

Financially, Divyadhan reported a revenue of ₹59.13 crore in FY 2024, marking a 2% year-on-year growth, with a profit after tax of ₹2.38 crore, up 10% from the previous year. The company's focus on recycling and sustainable products, combined with its improving profitability metrics (ROE of 18.42% and ROCE of 20.76%), positions it favourably in the growing market for recycled materials despite operating in a competitive and fragmented segment.

Read more about Divyadhan Recycling Industries IPO

Highlights of the Divyadhan Recycling Industries IPO:

• IPO Date: 26th September 2024 to 30th September 2024
• Listing Date: 4th October 2024 (Tentative)
• Face Value: ₹10 per share
• Price Band: ₹60 to ₹64 per share
• Lot Size: 2000 Shares
• Total Issue Size: 3,776,000 shares (aggregating up to ₹24.17 Cr)
• Fresh Issue: 3,776,000 shares (aggregating up to ₹24.17 Cr)
• Issue Type: Book Built Issue IPO
• Listing At: NSE SME
• Book Running Lead Manager: Narnolia Financial Services Ltd
• Registrar: Skyline Financial Services Private Ltd
• Market Maker: Kantilal Chhaganlal Securities