Resgen Ltd. manufactures pyrolysis oil for use in furnaces from waste plastic. Resgen, which was founded in 2018, aimed to make environmentally sustainable initiatives highly scalable and economical.
They have established a chemical recycling factory in Vikramgad (Palghar), Maharashtra. They employ all forms of waste plastic to produce pyrolysis oil and also treat the byproduct, carbon, as a substitute for coal and gas.
ResGen Limited IPO Objective
The company proposes to utilize the funds from the fresh issue IPO on the following heads:
- Purchase of land to set up a new manufacturing unit
- To meet working capital requirements and general corporate purposes
Why should you invest in the ResGen Limited IPO?
Here are your top reasons to invest in the IPO:
- The company works on projects to make plastic waste treatment sustainable and scalable. They were awarded an Indian patent for their manufacturing unit in 2021.
- The company has the engineering abilities to produce pyrolysis oil, a complex carbon chemical. Pyrolysis oil has multiple uses as a fuel for boilers and furnaces, can be distilled to produce diesel, and is a feedstock for producing virgin polymers.
- Renewable energy is an upcoming sector with great investment opportunities. In the Union budget of 2023, the government has announced a bunch of policies to boost green energy and environmentally sustainable projects.
ResGen Limited Company Financials
| Parameters | FY22 | FY21 | FY20 |
|---|---|---|---|
| Total revenue | ₹ 480.81 | ₹ 2.00 | NA |
| Profit After Tax | ₹ 73.50 | ₹ 0.63 | ₹ 15.15 |
| EPS | 0.59 | 0.01 | 0.14 |
| Total Asset | ₹1,371.31 | ₹1,110.01 | ₹161.78 |
| Total Borrowing | ₹932.92 | ₹961.33 | ₹24.05 |
Strengths
- The manufacturing unit is strategically located where it can easily source raw materials.
- The company focuses on enhancing brand recognition through targeted marketing and establishing a presence in major markets.
- They have obtained a patent for their manufacturing process.
Risks
- It is a relatively new business (commercially operative from 2021-22). There isn’t enough performance and financial data available for fundamental analysis.
- The segment is highly competitive, with multiple local players around.
- It is a high-risk segment that can be impacted by government policies.
ResGen IPO FAQs:
Q1. What is the ResGen Limited IPO?
Ans. ResGen Limited has filed a prospectus to raise ₹28.20 crore in the price band of ₹45-47 per equity share. The IPO will open for subscription on February 28, 2023.
Q2. When will the ResGen Limited IPO allotment be available?
Ans. The IPO shares of ResGen Limited will be allotted on March 8, 2023.
Q3. What will be the ResGen Limited IPO lot size?
Ans. One lot of the ResGen Limited IPO has 3000 shares.
Q4. When will the ResGen Limited IPO be open for subscription?
Ans. The IPO will open on February 28, 2023.
Q5. What minimum lot size can retail investors subscribe to?
Ans. Retail investors can’t bid for more than one lot of 3,000 shares.
Q6. When will ResGen Limited list exchanges?
Ans. The shares will list on the BSE exchange on March 13, 2023.
Q7. What would be the listing gains on the ResGen Limited IPO?
Ans. Listing gain is the difference between the IPO’s opening and offer prices. The listing gain results from changing investors’ interests, global parameters, and short-term vs. long-term outlooks.
Q8. I have finished the application process for the ResGen Limited IPO, but the funds are not yet debited. What is the reason?
Ans. The bank initially blocks the amount you bid for an IPO. It will debit the amount when the shares get allotted or unblock it after the UPI mandate expiry date.
Q9. How do I approve the UPI mandate request for the ResGen Limited IPO?
Ans. Login to your UPI handle and approve the payment mandate to complete the IPO application process.
Q10. Can I submit more than one application for the public issue of ResGen Limited using one PAN?
Ans. You can submit only one application using one PAN card.
Q11. What is the minimum order quantity for the ResGen Limited IPO?
Ans. The minimum size of the application will be one lot of 3000 shares.
