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Rungta Greentech Limited files DRHP with NSE Emerge

Posted On : 2024-03-13 13:38:27( TIMEZONE : IST )

Rungta Greentech Limited files DRHP with NSE Emerge

Rungta Greentech Limited, a leading manufacturer of recycled and virgin plastic products, today announced the filing of its Draft Red Herring Prospectus (DRHP) for an initial public offering (IPO). The offering comprises a fresh issuance of 38 lakh Equity Shares, each with a face value of Rs. 10. The company intends to list its equity shares on the Emerge Platform of the NSE, aiming to enhance its corporate image and brand visibility.

Beeline Capital Advisors Private Limited is the Book Running Lead Manager, and Link Intime India Private Limited is the Registrar to the issue.

The Kolkata-headquartered company manufactures recycled and virgin plastic products such as Recycled PET (Polyethylene Terephthalate) Flakes (RPF), Polyester Dope-Dyed Monofilament Yarn (PMY), Nylon Monofilament Yarn (NMY), and Blow- and Injection-Molded Jars and Caps (BM & IM). The company's product lines cater to various sectors, primarily packaging, textiles, aquaculture, agriculture, and the edible oil sector.

Rungta Greentech operates two manufacturing facilities in Howrah, West Bengal, and produces Recycled PET (Polyethylene Terephthalate) flakes, Polyester Dope-Dyed Monofilament Yarn, Nylon Monofilament Yarn, and Injection-Molded Jars and Caps. It supplies products to over 20 states, including Uttarakhand, West Bengal, Gujarat, Telangana, and Uttar Pradesh, and exports its products to Oman, Austria, Israel, and the United States of America.

According to the DRHP, RGL intends to invest a substantial part of the IPO proceeds in its wholly-owned subsidiary, Rungta Eco Extrusions Private Limited, to set up a new manufacturing facility. The company will utilise the remaining funds for general corporate purposes and issue proceeds.

RGL is planning to expand its existing line of business by adding new products to its portfolio, at the new manufacturing plant proposed to be set up at Howrah, West Bengal, through its wholly-owned subsidiary Rungta Eco Extrusions Private Limited. The new facility will serve as a forward integration to existing products by adding Food-Grade Recycled PET Resin and Recycled HDPE / PP granules to the portfolio.

"Our company is further planning to expand into our existing line of business with addition of new products to our portfolio, at our new manufacturing plant proposed to be set up at Howrah, West Bengal through our wholly owned subsidiary Rungta Eco Extrusions Private Limited. The new facility will have a capacity for a new line of products which are 14400 MT per annum for Food-Grade Recycled PET Resin and 1800 MT per annum for Recycled HDPE / PP granules to meet evolving market demands.' the DRHP states.

The company was established by the promoter duo Deepak Rungta and Praveen Rungta on August 03, 2005, and the Blow & Injection Molding unit commenced in 2007. With over 45 years of combined experience, the promoters created an extensive network of retailers, distributors, and processors for the company over the years. RGL is well-positioned to capitalise on the current and future growth opportunities with the help of a competent team that includes management professionals in manufacturing, supply chain and logistics.

The company recorded a revenue of Rs. 23.76 crore and a profit (PAT) of Rs. 2.45 crore in the first half of the current financial year, which ended September 30, 2023. It registered a revenue of Rs. 49.38 crore and a profit (PAT) of Rs. 1.82 core in FY 2022-23.

RGL received prominent certifications such as ISO 9001:2015 for Quality Management Systems and ISO 14001:2015 for Environmental Management Systems, demonstrating its execution capabilities. The company significantly contributes to the circular economy and sustainability by recycling plastic waste.

Source : Equity Bulls


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