Introduction
Seeking an introduction to the principles of recycling, specifically copper, a recyclable resource, Sunlite Recycling Industries is now going to offer its Initial Public Offering. Therefore, investors who are interested in companies that work for sustainability and green concepts can go for this kind of an investment. Sunlite Recycling is looking for a subscription of about ₹30.24 crores through this IPO, the funds from which would most likely benefit and help the company grow and meet the increased market demands.
About Sunlite Recycling Industries
About Sunlite Recycling Industries
Sunlite Recycling Industries has its name significantly etched in the recycling industry of copper. They accept scrap copper and turn it into products like rods, wire, and earthing strips that get used in the power generation and electronics industries. The company not only caters to the needs of an industry but also helps the environment, making it a win-win.
Sunlite comes from a very modern facility fully equipped with the state-of-the-art technology in Gujarat, India. Its commitment to quality and innovation has enabled long-term relations with the customers, which in turn has kept Sunlite abreast of all the industry developments.
Sunlite Recycling IPO Details
The Sunlite Recycling Industries IPO remains open from 12th August 2024 to 14th August 2024. The price range for the Offer is ₹100-105 per Equity Share of face value of ₹10 each. Having a minimum investment size of 1,200 shares, a minimum investment of an amount of ₹126,000 has to be made by an investor. All these would mean that the shares would get listed on the SME platform of NSE, meant for small and medium enterprises.
Purpose of the IPO
Sunlite Recycling Industries will spend the raised funds on the IPO for the following three purposes:
Scale-up manufacturing: The firm shall use it to acquire new tools that shall implicate an increase in its current manufacture level. It can now produce more products to satisfy demand.
Repaying debts: Some funds shall be used on the repayment of borrowed loans, which shall put the situation of the company in a very strong position.
General Corporate Purposes: The remaining amount will be used for general corporate purposes, enabling the Company to run its operations smoothly and pursue new opportunities.
Sunlite Recycling IPO GMP (Grey Market Premium)?
The Grey Market Premium (GMP) for Sunlite Recycling Industries IPO is presently around ₹15 per share. The GMP gives an impression about how the public offers in the IPO before the actual allotment. With a positive GMP, it indicates good demand for the shares, but it’s all the same at the background of the company’s fundamentals and you from the point of investment.
Company’s Financial Performance
Sunlite Recycling Industries has shown a steady growth in financial terms over the past few years. In the financial year 2023, the turnover was ₹1,150.40 crores, and the PAT was ₹5.60 crores. These numbers show how the company can churn profits in its line of operation regularly, meaning quite a good sign for the investors.
This is how the company also boasts a RoNW of 154.74%, and Sunlite is able to use its resources effectively in this respect to draw out benefits, an aspect that would make its clientele yield sufficiently for its investors to consider it more.
Comparison with Competitors
Sunlite Recycling only competes directly with such firms as Rajnandini Metal Limited and Bhagyanagar India Limited. But it is a company that can only be outdone by the apt one due to the slogan it has on sustainability. Other firms may be using the methods that are currently classified as out of date.
Further, its varied products offerings imply Sunlite can target across varied industries. Such diversification-type means that overreliance in one market is controllable, making the revenue of the Corporation stable.
Read More: Saraswati Saree Depot IPO GMP, Review, Subscription Status and Other Details
IPO Allotment and Listing
The allotment of shares will be finalised on August 16, 2024. If you don’t get any shares your refund will come by August 19, 2024. Those who do get the shares, it will be credited to their Demat account by the same date. The shares is likely to list on the NSE SME platform on August 20, 2024.
Things to Consider Before Investing
Considering these points before investing in the IPO of Sunlite Recycling Industries, be very sure about the strong financials of the company. The company has good financials with continuous revenue and profit generation, which indicates that it has the potential for further growth.
Growth Potential: Due to Sunlite’s planned increase in production capacity, it looks very optimistically placed in order to fetch good mileage from the increasing demand emanating from the market. Thus, this is a very good option for long-term investors.
Risks: Since it is an investment, it’s not without risks. The market situation can change, and copper prices have its ups and downs, which can directly affect the company’s profitability. It is imperative to weigh these risks before making a decision.
How to Apply Sunlite Recycling IPO
Applying for the Sunlite Recycling Industries IPO is straightforward.
Via ASBA: You can apply using the Application Supported by Blocked Amount (ASBA) through your bank account. In this method, the amount required for the application is blocked until the allotment.
Through UPI: You can also use the UPI application through your stock broker for applying. This is a quick and easy method of investing in an IPO.
Offline Forms: If you like, you can download and submit the physical application form through bank or broker.
Should You Invest?
The IPO of Sunlite Recycling Industries seems to have a lot of promise, with more towards thematic investors. The reason being, the financials of the company are appealing in the sense of being very conscious of the environment and its responsibility, and growth strategies. Please, as always, be mindful of your own risk tolerance and investment goals.
This issue can pay well for long-term investors. This company’s efforts in sustainable development, along with current expansion plans, will place it in a position to reap the future growth, hence a potential winner in the eco-friendly manufacturing sector.
Conclusion of Sunlite Recycling IPO
Sunlite Recycling Industries’ IPO is an offer to invest in a company uniquely blending profitability with sustainability. Strong financials, clear growth strategy, and commitment to the environment make this IPO one for the value investor. Before investing in any investment opportunity, it is important to do your research and consider your risk tolerance.
FAQs – Sunlite Recycling IPO
What is the IPO size?
The IPO aims to raise ₹30.24 crores.
When is the IPO open for subscription?
The IPO is open from August 12, 2024, to August 14, 2024.
What is the minimum investment?
The minimum investment is ₹126,000 for 1200 shares.
When will the shares be listed?
The shares are expected to be listed on August 20, 2024, on the NSE SME platform.
How can I apply for the IPO?
You can apply via ASBA, UPI, or by submitting offline forms.