Sunlite Recycling Industries IPO 2024: Launch Date, Pricing, and Allotment Insights
Sunlite Recycling Industries Limited is a copper scrap recycling company based in India, established in 2012. The company mostly deals with copper products such as rods, wires, earthing wires, conductors, wire rods, and others. It is dedicated to providing products with high durability across industries. The IPO process of the company will start on August 12 and end on August 14, 2024, so as to raise capital to fund fixed capital development for new plants and machinery.
The new share sale is going to be of approx. INR 30.24 Crores through the issue of 2,880,000 equity shares at INR 10 each by the promoters (price band INR 100-INR 105). It will be available for subscription in three categories:
Qualified Institutional Buyers (QIBs): 50%
Non-Institutional Investors (NIIs): 15%
Retail Individual Investors (RIIs): 35%
Company Overview
Sunlite Recycling Industries Limited is an established company since 2012 that deals with the recycling of copper scraps and manufacturing of copper rods and wires, copper earthing wires, copper earthing strips, copper conductors, and copper wire rods. These products are used in different sectors such as power generation, transmission, distribution, and other electronic industries. It has its registered office and manufacturing plant in Kheda, Gujarat where it occupies about 12,152 sqm of the plant and over 20 machines for manufacturing of copper products.
Details on Sunlite Recycling Industries Limited IPO Date and Price Band
The firm Initial Public Offering is proposed to open on 12th August 2024, with the lots to be closed on 14th August 2024 and planning to mobilize around INR30.24 Crores offering for sale up to 2,880,000 equity shares of face value INR 10 each by the promoter, price bid for the issue is INR100-105 per share with a minimum bid lot of 1,200 shares.
The equity shares of the firm will be listed on the BSE and NSE, India-based stock exchanges, in three categories: Retail Individual Investors (RIIs): 35%; Qualified Institutional Buyers (QIBs): 50%; and Non-Institutional Investors (NIIs): 15%.
| IPO Open: | 12th August 2024 |
| IPO Close: | 14th August 2024 |
| IPO Size: | Approx INR30.24 Crores |
| Offer for Sale: | Approx 2,880,000 Equity Share |
| Face Value: | INR10 Per Equity Share |
| IPO Price Band: | Approx INR100 to INR105 Per Share |
| IPO Listing on: | BSE & NSE |
| Retail Quota: | 35% |
| QIB Quota: | 50% |
| NII Quota: | 15% |
IPO Objective
- Capital expenditure for the installation of new plant and machinery.
- Repaying or prepaying of loans
- Covering general corporate expenses
Market lot Information on Sunlite Recycling Industries Limited IPO
The lot size and corresponding amounts are as follows:
- Retail Minimum: 1 lot (1200 shares) for INR1,26,000
- Retail Maximum: 1 lot (1200 shares) for INR1,26,000
- S-HNI Minimum: 2 lots (2400 shares) for INR2,52,000
Allotment Dates for Sunlite Recycling Industries Limited IPO
The company is planning to open and close its IPO in 12th August 2024 and 14th August 2024 respectively. The allotment for the IPO is anticipated to be finalized on 16th August 2024 and the shares are expected to be floated in the stock markets in 20th August 2024 tentatively.
| IPO Open Date: | 12th August 2024 |
| IPO Close Date: | 14th August 2024 |
| Basis of Allotment: | 16th August 2024 |
| Refunds: | 19th August 2024 |
| Credit to Demat Account: | 19th August 2024 |
| IPO Listing Date: | 20th August 2024 |
Note: Given dates are tentative.
Application Process of IPO
The IPO can be accessed by submitting an application through the online ASBA (Application Supported by Blocked Amount) facility from via candidate’s ‘Internet banking’, going to ‘Invest’, and applying for the Sunlite Recycling Industries Limited IPO. On the other hand, the IPO forms are also available for download on the NSE websites which the candidates can fill and submit.
Financial Analysis of Company
| Year/ INR(Crores) | Revenue | Expense | PAT |
| 2021 | INR394.0 | INR390.25 | INR2.53 |
| 2022 | INR937.92 | INR932.27 | INR4.26 |
| 2023 | INR1150.40 | INR1142.84 | INR5.60 |
| December 2023 | INR851.86 | INR843.96 | INR6.00 |
Sunlite Recycling Industries’ financial performance revealed satisfactory figures of revenue, expenses, and PAT for the last three years.
The total revenue of the company in 2021 was INR 394.0 Crores, with expenses of INR 390.25 Crores, thus resulting in a PAT of INR 2.53 Crores. In 2022, the revenue was INR 937.92 crore, indicating enhanced revenue generation.
In addition, the total revenue of the company was INR 1150.40 Crores in 2023, with expenses of INR 1142 Crores and a PAT of INR 5.60 crore, which is an increase of almost 23% as compared to the previous year. Whereas, in December 2023, the company’s expenses were INR 843.96 crore and revenue was INR 843.96 crore.
IPO Valuation
In fiscal year 2023, Sunlite Recycling Industries Limited earned an Earnings Per Share (EPS) of INR14.01 for the period under consideration. The Return on Net Worth (RoNW) ratio was high at 154.74% and Net Asset Value (NAV) per equity share was recorded at INR9.05.
| Earning Per Share (EPS): | INR14.01 per Equity Share |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 154.74% |
| Net Asset Value (NAV): | INR9.05 per Equity Share |
Competitor Analysis
- Rajnandini Metal Limited
Rajnandini Metal Limited is an India-based company engaged in the manufacturing and exporting of copper products. The firm primarily operates by delivering the best copper products and services in several sectors, including electrical, automotive, and construction. The company has always maintained the quality of its products’ vision of customer satisfaction and the timely adoption of emerging technologies to gain a competitive advantage in the sector.
- Bhagyanagar India Limited
Bhagyanagar India Limited is an India-based company incorporated in 1985 that is involved in the manufacturing and trading of copper and copper products. The company also presents a variety of products, such as copper rods, wires, strips, and cables, for the power, automotive, and electronics sectors. With effective compliance with international standards, it has acquired a competitive market edge to supply the domestic and international copper markets.
Company Promoters
- Nitin Kumar Heda
- Prahladrai Ramdayal Heda
- Khushboo Manishkumar Heda
The upcoming IPO of Sunlite Recycling Industries Limited represents a significant milestone for the company and an enticing opportunity for investors. Established in 2012, Sunlite has carved out a niche in the copper recycling industry, serving diverse sectors with its high-quality copper products. As it plans to expand its capacity with the installation of new plant and machinery, the IPO proceeds are expected to bolster its growth trajectory and enhance operational efficiencies.
The detailed IPO plan, which includes a price band of INR 100 to INR 105 per share and a strategic allocation for different investor categories, reflects a well-thought-out approach to entering the capital markets. Investors will appreciate the company’s solid financial performance, with consistent revenue growth and profitability over the years. Additionally, the strategic location of its manufacturing facilities and its focus on sustainable practices add to the attractiveness of Sunlite as an investment.
Comparatively, Sunlite stands robust against its competitors like Rajnandini Metal Limited and Bhagyanagar India Limited, who also play significant roles in the copper product market. Sunlite’s commitment to quality, customer satisfaction, and innovation allows it to maintain a competitive edge and adapt to market dynamics effectively.
Investors looking to diversify their portfolios and participate in the growth of a sustainable and innovative manufacturing sector may find Sunlite Recycling Industries’ IPO a promising option. With its clear objectives for the use of IPO proceeds and a strong foundation in a critical industry, Sunlite is poised for a brighter future, making it a noteworthy consideration for potential stakeholders in the bustling market of 2024.
