The Organic Recycling Systems IPO, which opened for subscription on Thursday, September 21, and is set to close on Tuesday, September 26, has a price band of ₹200 per equity share with a lot size of 600 equity shares, and thereafter in multiples of 600 equity shares. The issue price is 20 times the face value of the equity shares.
This IPO, worth ₹50 crores, consists solely of a fresh issue of 2,500,200 equity shares, with no offer for sale (OFS) component. The promoter of the company is Sarang Bhand. The net proceeds from the offering will be used to repay debt, meet general corporate purposes, and fund issue expenses. According to the red herring prospectus (RHP), 75% of the gross IPO proceeds will go towards debt repayment, 20.96% will be used for general corporate purposes, and 4.04% will cover issue expenses.
Arihant Capital Markets Ltd is the book-running lead manager for the Organic Recycling IPO, and Maashitla Securities Private Ltd is the registrar for the issue. Arihant Capital Markets is also the market maker for the IPO.
Organic Recycling Systems has been providing sustainable waste management solutions in India since 2008, with a focus on developing cost-effective and environmentally friendly technologies.
As of the first day of subscription, the IPO has received a tepid response, with an overall subscription status of 7%. The retail investors’ portion was subscribed 12%, while the non-institutional buyers’ portion was subscribed 1%.
In the grey market, the Organic Recycling IPO has been trading at par with its issue price of ₹200, indicating that there is no premium or discount in the grey market.
Investors considering this IPO should be well-informed and may choose to invest for the medium to long term, as the issue is seen as aggressively priced. The performance of the company in FY23 indicates prospects for specialized services and solutions in municipal solid waste (MSW) projects.
