Company Overview

Divyadhan Recycling Industries Limited, incorporated in May 2010, is a prominent player in the sustainable manufacturing sector, specializing in the production of Recycled Polyester Staple Fibre (R-PSF) and Recycled Pellets. The company actively contributes to environmental conservation by recycling post-consumer waste materials. Its registered office is located at 1803 Lodha Supremus, Saki Vihar Road, Mumbai, Maharashtra.

The company has undergone significant structural transformations. It was initially incorporated as Divyadhan Consultants Private Limited on May 03, 2010. Subsequently, its name changed to Divyadhan Recycling Industries Private Limited on November 10, 2023. On March 02, 2024, the company converted its status to a Public Limited entity, receiving a new Certificate of Incorporation from the Registrar of Companies, Mumbai.

Business Operations and Products

Divyadhan Recycling Industries is engaged in manufacturing Recycled Polyester Staple Fibre (R-PSF) and Recycled Pellets. These products are derived from post-consumer PET bottles (Polyethylene Terephthalate). The company's manufacturing approach directly addresses environmental concerns by transforming waste plastic bottles into valuable textile and industrial materials.

The company operates through two primary business verticals:

- Recycled Fiber: Produces synthetic fibre (Recycled Polyester Staple Fiber - R-PSF) from PET bottles used for beverages and other consumer products.

- Recycled Pellets/Chips: Manufactures recycled pellets, using the same raw material source as the recycled polyester staple fiber.

Its product range includes carpet yarn, filling fiber, geotextile, non-woven fabric materials, and spinning fiber. The recycled chips are also supplied. These materials find applications across diverse industries such as apparel, home furnishings, automotive components, non-woven fabrics, packaging, insulation, and food/non-food grade bottles.

Manufacturing Infrastructure

The company's manufacturing unit is situated in Village Kalyanpur, Tehsil Baddi, District Solan, Himachal Pradesh. It boasts a total production capacity of 8,030 metric tons per annum for fibre and 4,320 metric tons per annum for pellets. Operations commenced in the financial year 2018-19, focusing on R-PSF production at the Baddi facility.

Divyadhan Recycling Industries holds certifications for Quality Management System (ISO 9001:2015) and Environmental Management System (ISO 14001:2015), affirming its commitment to high quality standards and environmental responsibility in its manufacturing processes.

Recent IPO Performance and Listing

The Initial Public Offering (IPO) for Divyadhan Recycling Industries Ltd opened for subscription from September 26, 2024, to September 30, 2024. The shares were listed on the NSE SME platform on October 4, 2024. The IPO was a significant success, subscribed 27.23 times, indicating strong investor confidence in the company's sustainable business model.

Following its listing, shares of Divyadhan Recycling Industries traded at ₹88.20 on the NSE, representing a premium of 37.81% over the issue price of ₹64. The scrip debuted at ₹84, a 31.25% premium. This positive listing performance underscores market trust in the company's growth potential.

The IPO consisted of 3,776,000 equity shares, aggregating up to ₹24.17 Crores. It was entirely a fresh issue. The company successfully raised ₹6.84 crore from anchor investors prior to the IPO.

Financial Performance

As of March 31, 2024, the company reported revenue from operations of ₹56.12 crore and a net profit of ₹2.37 crore. Between the financial years ending March 31, 2023, and March 31, 2024, the company's revenue saw a marginal increase of 2%, while its profit after tax (PAT) grew by 10%.

The company has demonstrated improving profitability trends. Its profit after tax has steadily risen from ₹52.91 lakhs in FY2022 to ₹237.80 lakhs in FY2024, suggesting enhanced cost management and profitability. Reserves and surplus also saw substantial growth, increasing from ₹353.23 lakhs in FY2023 to ₹764.49 lakhs in FY2024, which positions the company well for potential expansion.

#### Key Financial Metrics (as of latest available dates):

- Revenue from Operations (FY24): ₹56.12 crore

- Net Profit (FY24): ₹2.37 crore

- Market Capitalization: ₹57.2 crore (as of December 2024)

- PE Ratio: 24.0

- ROE: 22.3%

- ROCE: 24.0%

Management and Workforce

As of August 31, 2024, Divyadhan Recycling Industries Ltd had a workforce of 83 employees. The company is promoted by Mr. Pratik Gupta and Mr. Varun Gupta. The key management includes Chairman Pramod Kumar Gupta, and the Company Secretary is also part of the leadership team.

Shareholding Structure

Following the IPO, the promoter and promoter group shareholding was diluted to 69.24% from a pre-issue stake of 94.06%. The current shareholding pattern is:

- Promoters: 69.24%

- Institutions: 12.11%

- Public: 18.66%

This structure aims to balance promoter control with good corporate governance.

Stock Exchange Listing and Symbol

Divyadhan Recycling Industries Ltd is listed and actively trades on the National Stock Exchange (NSE) SME platform.

- Stock Symbol: DIVY

- Company Name on Exchange: DIVYADHAN

The company's listing on the NSE SME reflects its status as a growing small and medium enterprise with significant growth potential.

Recent Corporate Updates

- December 11, 2024: The exchange sought clarification from Divyadhan Recycling Industries Limited regarding its financial results for the quarter ended September 30, 2024, concerning Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This is a standard compliance monitoring procedure by stock exchanges.

Divyadhan Recycling Industries continues to strengthen its position in the sustainable manufacturing sector. Its core business of converting waste materials into valuable products aligns perfectly with global environmental trends and the principles of a circular economy. The successful IPO and positive market reception provide a strong foundation for potential future growth within the expanding recycling industry.