Sunlite Recycling Industries Limited is launching an IPO with a fresh issue of 28,80,000 shares worth INR 30.24 crores. The company aims to fund new plant installations, repay borrowings, and support general corporate purposes.
Sunlite Recycling Industries IPO – Important Dates
| Sunlite Recycling Industries Limited IPO Date | August 12, 2024 to August 14, 2024 |
| Sunlite Recycling Industries Limited IPO Listing Date | August 20, 2024 |
| Sunlite Recycling Industries Limited IPO Price | INR 100-105 per share |
| Sunlite Recycling Industries Limited IPO Lot Size | 1200 Shares |
| Sunlite Recycling Industries Limited IPO Total Issue Size | INR 30.24 crores |
| Sunlite Recycling Industries Limited IPO Basis of Allotment | August 16, 2024 |
| Sunlite Recycling Industries Limited IPO Initiation of Refunds | August 19, 2024 |
| Sunlite Recycling Industries Limited IPO Credit of Shares to Demat | August 19, 2024 |
| Sunlite Recycling Industries Limited IPO Issue Type | Book Built Issue IPO |
| Sunlite Recycling Industries Limited IPO Listing At | NSE SME |
Sunlite Recycling IPO – Company Profile
Sunlite Recycling Industries Limited manufactures copper products from recycled scrap for power and electronic industries, provides job work services for copper processing, and ensures high-quality standards to meet customer requirements.
Since starting in 2012, they’ve expanded from producing oxygen-free copper rods to a diverse range of copper products, utilizing 20 machines across their Gujarat facility. This has significantly increased revenue through continuous growth and innovation.
Offering diverse copper products, they prioritize environmental safety by recycling copper scrap using solar energy and natural gas, conserving resources and reducing pollution compared to traditional methods, and significantly saving energy.
Sunlite Recycling Industries Ltd IPO Fundamental Analysis
Sunlite Recycling Industries Limited Technologies’ financial analysis reveals a mixed performance. Revenue has grown steadily, equity has increased, profitability and EPS have improved, RoNW is higher, and assets have grown, but inventory turnover has decreased.
- Revenue Trend: The revenue increased from ₹93,719.32 lakhs in March 2022 to ₹1,15,018.88 lakhs in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 1,16,627.09 lakhs.
- Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing.
- Profitability: The profit after tax (PAT) has significantly increased from ₹426.03 lakhs in March 2022 to ₹890.36 lakhs by March 2024. This improvement in profitability could be a source of confidence among investors.
- Earnings per Share (EPS): The diluted EPS has risen from ₹10.65 in March 2022 to ₹19.35 by March 2024, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has risen from 36.77% to 44.43%, indicating an increase in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations.
- Inventory Turnover Ratio: There’s a significant decrease in the Inventory Turnover Ratio, which might suggest slower sales or inefficient inventory management.
Sunlite Recycling Industries IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in lakhs) | 93,719.32 | 1,15,018.88 | 1,16,627.09 |
| Equity (₹ in lakhs) | 1,158.58 | 362.08 | 2,003.9 |
| Expenses (₹ in lakhs) | 93,227.27 | 1,14,284.42 | 1,15,475.08 |
| Profit and Loss After Tax (₹ in lakhs) | 426.03 | 560.27 | 890.36 |
| Diluted EPS only (₹) | 10.65 | 14.01 | 19.35 |
| Return on Net Worth (%) | 36.77 | 154.74 | 44.43 |
| NAV per Equity Share (₹) | 43.55 | 9.05 | 28.96 |
| Total Assets (in lakhs) | 4,802.05 | 7,162.56 | 6,321.24 |
| Total Liabilities (in lakhs) | 3,643.47 | 6,800.48 | 4,317.34 |
| Debt Equity Ratio | 2.19 | 12.83 | 1.74 |
| Current Ratio (in times) | 1.40 | 1.27 | 1.25 |
| Inventory Turnover Ratio | 51.95 | 35.44 | 32.66 |
Sunlite Recycling IPO Peer Comparison
Sunlite Recycling Industries Limited shows strong earnings per share and return on net worth, outperforming Rajnandini Metal Limited, which has lower profitability and efficiency metrics. Meanwhile, Bhagyanagar India Limited has a high turnover but moderate profitability.
| Company | Total Income (₹ in lakhs) | Face Value per Equity Share (₹) | P/E Ratio | EPS (Basic & Diluted) (₹) | RoNW (%) | Book Value (₹ in lakhs) |
| Sunlite Recycling Industries Limited | 1,16,655.09 | 10 | – | 19.35 | 44.43 | 43.55 |
| Rajnandini Metal Limited | 1,22,093.00 | 10 | 24.71 | 0.55 | 26.94 | 2.05 |
| Bhagyanagar India Limited | 1,47,480.35 | 2 | 7.67 | 14.29 | 23.65 | 60.44 |
Sunlite Recycling Industries Ltd IPO Objective
The main objective of Sunlite Recycling Industries Limited is to fund capital expenditure for new plant and machinery installation and repay or prepay certain company borrowings.
- Funding of capital expenditure towards installing new Plant and machinery: Based on current business plans and quotations, the company intends to utilize INR 4.05 crores to acquire Plant and machinery for its existing manufacturing unit, though orders still need to be placed.
- Repayment and prepayment, in whole or part, of certain borrowings availed by the company: The company plans to utilize INR 15.80 crores for repaying or prepaying certain borrowings, aiming to reduce debt, lower servicing costs, improve the debt-to-equity ratio, and enhance leverage for future business growth and expansion.
- General Corporate Purpose: The company will deploy the balance of funds towards general corporate purposes, including meeting operating expenses, initial development costs for new projects, strengthening business development and marketing capabilities, and addressing unforeseen exigencies.
Sunlite Recycling Industries IPO Risks And Challenges
Sunlite Recycling Industries Limited’s risk includes fluctuations in copper scrap prices, reliance on critical suppliers without long-term contracts, foreign exchange exposure, and regional concentration in Gujarat, which could impact profitability, operations, and business prospects.
- Fluctuations in copper scrap prices and potential supply disruptions from government restrictions or policy changes could impact profitability, business operations, and the timely sourcing of raw materials, affecting overall financial performance.
- Reliance on critical suppliers without long-term contracts and exposure to foreign exchange risks from import purchases could disrupt raw material supply, affect costs, and impact profitability, potentially leading to production delays and adverse financial effects.
- The concentration of sales and manufacturing in Gujarat exposes the company to regional risks. Adverse local developments or competition from established players could impact operations, expansion efforts, and financial performance, affecting overall business prospects.
Sunlite Recycling Industries Ltd IPO – Industry & Market Potential
Manufacturing is a crucial driver of India’s economic growth. It generated 16-17% of GDP pre-pandemic and is set for rapid growth. Embracing digital transformation and automation, India aims to become a central global manufacturing hub, with an export potential of US$1 trillion by 2030.
India’s manufacturing sector, contributing 17% of GDP and employing over 27.3 million, aims to reach 25% GDP share by 2025. Government initiatives, including the ‘Make in India’ program and PLI scheme, boost growth and global competitiveness.
India is a prime destination for foreign investment in manufacturing, with the potential to reach $1 trillion by 2025. Initiatives like SAMARTH Udyog Bharat 4.0 and industrial corridors aim to boost competitiveness and holistic development.
Sunlite Recycling IPO – Type of Offer
Sunlite Recycling Industries Limited is launching an IPO with a fresh issue of 28,80,000 shares worth INR 30.24 crores. The company aims to fund new plant installations, repay borrowings, and support general corporate purposes.
Sunlite Recycling Industries Limited IPO Offer Size
The offer size of Sunlite Recycling Industries Limited is INR 30.24 crores, consisting of a fresh issue of 28,80,000 shares. The company seeks funds for new plant installations, repay borrowings, and support general corporate purposes.
Sunlite Recycling IPO Allotment Structure
Sunlite Recycling Industries Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 148,800 shares are reserved for market makers.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
● Market Maker Reservation: A portion of shares, i.e. 148,800 shares, are reserved for market makers.
How to apply for the Sunlite Recycling Industries IPO?
To apply for the Sunlite Recycling Industries Limited IPO through Alice Blue, follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Sunlite Recycling Industries Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Sunlite Recycling Industries Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Sunlite Recycling Industries Limited IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Sunlite Recycling Industries Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Sunlite Recycling Industries Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Sunlite Recycling Industries Limited IPO:
● Registrar’s Website: Visit the website of Cameo Corporate Services Limited, the registrar of the Sunlite Recycling Industries Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Sunlite Recycling Industries Ltd IPO Offer Registrar
The registrar for the Sunlite Recycling Industries Limited IPO is Cameo Corporate Services Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
CAMEO CORPORATE SERVICES LIMITED
Address: “Subramanian Building”, No. 1,
Club House Road, Chennai-600002,
Tamil Nadu, India.
Tel No.: +91-44-40020700/28460390
Email: [email protected]
Website: www.cameoindia.com
Sunlite Recycling Industries Limited IPO – FAQs
1. What is the allotment date of the Sunlite Recycling Industries IPO?
The allotment date of the Sunlite Recycling Industries Limited IPO is August 16, 2024.
2. What is the price band of the Sunlite Recycling Industries IPO?
The price band of the issue is INR 100-105 per share.
3. What is the size of the Sunlite Recycling Industries IPO?
The offer size of Sunlite Recycling Industries Limited is INR 30.24 crores, consisting of a fresh issue of 28,80,000 shares. The company seeks funds for new plant installations, repay borrowings, and support general corporate purposes.
4. What is the listing date of the Sunlite Recycling Industries IPO?
The listing date of Sunlite Recycling Industries Limited’s IPO is August 20, 2024.
