Hi-Green Carbon, a tire recycling firm based in Gujarat, recently saw its initial public offering (IPO) oversubscribed, raising ₹53 crore ($7.1 million). The IPO involved the sale of 7,038,400 shares. On the listing day, shares hit a 5% upper circuit at ₹80.85 ($1.08), compared to the issue price of ₹75 ($1.01).
The proceeds from the IPO are earmarked for the development of a new plant in Dhule. The facility is designed to have a daily capacity of 100 metric tons for waste tire recycling. The recycled products include recovered carbon black, steel wires, fuel oil, and synthesis gas.
The past fiscal year has been promising for Hi-Green Carbon. The company reported a significant revenue growth of 54.5% in FY23 and a tripling of its net profit. This robust financial performance underpins the firm's ambitious expansion plans and reflects the growing demand for sustainable waste management solutions.
According to InvestingPro's real-time metrics, Hi-Green Carbon has been trading at a low earnings multiple, making it an attractive investment opportunity. The firm has impressive gross profit margins, a key indicator of financial health and profitability. Another noteworthy point is that the company has maintained dividend payments for six consecutive years, a commendable feat that speaks volumes about its financial stability and commitment to shareholders.
InvestingPro Tips also highlights that Hi-Green Carbon is a prominent player in the Electrical Equipment industry. This is essential as it means the company has a significant influence in its sector, which can potentially lead to more business opportunities. Moreover, despite the prediction that the net income is expected to drop this year, analysts predict the company will remain profitable.
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