Hi-Green Carbon IPO Soars into the Market Today
Hi-Green Carbon IPO
Hi-Green Carbon, formerly known as Shantol Green Hydrocarbons, is a pioneering company in the field of tire recycling.
Established in 2011, the company has made remarkable strides in the eco-friendly industry of tire recycling. Its recent Initial Public Offering (IPO), valued at Rs 53 crore, has drawn significant attention from investors and industry enthusiasts.
In this comprehensive article, we will delve into Hi-Green Carbon’s journey, the specifics of its IPO, its business model, and the broader implications of its success.
The Journey of Hi-Green Carbon
Hi-Green Carbon’s journey began over a decade ago when it started operations as Shantol Green Hydrocarbons. The company’s primary mission was to address a pressing environmental concern – the recycling of used tires.
The indiscriminate disposal of tires poses significant environmental hazards due to their non-biodegradable nature and potential for harmful chemicals to leach into the soil.
Recognizing this issue, Hi-Green Carbon embarked on a mission to transform discarded tires into valuable resources while reducing their negative impact on the environment.
Tire Recycling Process
Hi-Green Carbon employs cutting-edge technology known as pyrolysis for tire recycling. This process involves the controlled heating of used tires in the absence of oxygen, resulting in the decomposition of the tire material into various valuable byproducts. These byproducts include:
- Recovered Carbon Black (rCB): This is a high-value product obtained from tire pyrolysis. rCB can replace virgin carbon black in various applications, including rubber manufacturing, plastics, and inks.
- Steel Wire: Tires contain steel wires that are separated and recovered during the pyrolysis process. These steel wires can be recycled and used in various industrial applications.
- Fuel Oil: Pyrolysis produces fuel oil, which can be used as an energy source or further refined for various applications.
- Synthesis Gas (Syngas): Syngas is a versatile gas mixture that can be used in several industrial processes, including the production of chemicals and fuels.
Capacity and Expansion
Hi-Green Carbon’s manufacturing plant, located in Rajasthan, has the impressive capability to recycle up to 100 tonnes of tires daily.
This substantial capacity reflects the company’s commitment to tackling the tire waste problem on a large scale. Furthermore, Hi-Green Carbon is not content with its current capacity; it has ambitious expansion plans in place.
The company intends to set up a new tire recycling plant in Dhule, Maharashtra. Once operational, this plant will mirror the capabilities of its existing facility, recycling 100 tonnes of tires daily.
The expansion into Maharashtra signifies Hi-Green Carbon’s commitment to spreading its eco-friendly tire recycling operations to different regions of India.
Financial Performance
One of the key factors contributing to the heightened interest in Hi-Green Carbon’s IPO is its outstanding financial performance in recent years.
The company has demonstrated a remarkable ability to increase its net profit at an astonishing rate. Let’s take a closer look at its financial journey:
- In the fiscal year 2021, Hi-Green Carbon recorded a net profit of Rs 9.59 lakh.
- In the following fiscal year, its net profit surged to an impressive Rs 3.68 crore.
- Fast forward to the fiscal year 2023, and the company achieved an astonishing net profit of Rs 10.85 crore.
This exponential growth in profitability over just a few years is a testament to the company’s effective operations and its ability to capitalize on the growing demand for sustainable tire recycling solutions.
Hi-Green Carbon IPO: Opening New Avenues
Hi-Green Carbon’s IPO marks a significant milestone in the company’s journey and opens up new avenues for growth and development.
The IPO is valued at Rs 53 crore, making it a substantial fundraising endeavor. It’s essential to understand the key details and dynamics surrounding this IPO:
IPO Details
- The Hi-Green Carbon IPO, with a total value of Rs 52.80 crore, is open for subscription until September 25, providing potential investors with a window of opportunity to participate in the offering.
- The IPO offers shares within a price band of Rs 71-75 per share, with a minimum lot size of 1600 shares, ensuring accessibility to a broad spectrum of investors.
- The allocation of shares within the IPO is structured as follows: 50 percent for Qualified Institutional Buyers (QIBs), 15 percent for Non-Institutional Investors (NIIs), and 35 percent for retail investors.
- Following a successful IPO, the allocation of shares will be finalized on September 28, and the shares will be listed on NSE SME on October 4. The registrar for this IPO is Intime.
Utilization of Funds
The funds raised through the issuance of new shares in the IPO will serve multiple purposes. A significant portion of the proceeds will be channeled towards setting up a state-of-the-art tire recycling plant in Maharashtra, underscoring Hi-Green Carbon’s commitment to expanding its operations and contributing to environmental sustainability.
Additionally, the funds will be allocated to meet working capital requirements, cater to general corporate needs, and cover expenses related to the IPO.
Grey Market Premium (GMP)
The excitement surrounding Hi-Green Carbon’s IPO extends to the grey market, where its shares have commanded a notable Grey Market Premium (GMP) of Rs 50.
This GMP reflects the demand and anticipation among investors, with shares trading at a premium above the upper price band of the issue.
However, it’s essential to note that investment decisions should be based on a comprehensive evaluation of the company’s financials and fundamentals, rather than solely relying on signals from the grey market.
Subscription Period and Allotment
As mentioned earlier, the subscription period for the Hi-Green Carbon IPO extends until September 25. Investors have ample time to assess the offering and make informed investment decisions.
Following the subscription period, the allotment of shares will be finalized on September 28, and investors eagerly await their share of the company.
Future Prospects and Impact
The success of Hi-Green Carbon’s IPO holds the promise of significant positive impacts on multiple fronts. From an environmental perspective, it signifies a substantial step towards addressing the tire waste problem in India.
The expansion of the company’s tire recycling operations into Maharashtra further underscores its commitment to environmentally responsible practices.
Moreover, the IPO’s success also has broader implications for the Indian startup and industrial landscape. It showcases the potential of eco-friendly and sustainable businesses to attract substantial investment and support.
As Hi-Green Carbon demonstrates, companies that prioritize both profitability and environmental responsibility can carve out a prominent place in India’s burgeoning green economy.
Final Thoughts
Hi-Green Carbon’s journey from its inception in 2011 to its current status as a prominent player in the tire recycling industry is an inspiring tale of environmental responsibility, innovation, and financial success.
Its IPO represents not only a significant fundraising effort but also an opportunity for investors to participate in a company that is at the forefront of addressing environmental challenges while achieving remarkable financial growth.
As the subscription period for the IPO continues, investors and industry watchers eagerly await the allotment of shares and the subsequent listing on NSE SME.
Hi-Green Carbon’s success story serves as a beacon for sustainable business practices, and its tireless efforts to convert waste into valuable resources have the potential to revolutionize the way we approach environmental sustainability in India’s industrial landscape.
