Organic Recycling SME IPO: Shares list at 7.5% premium against issue price

In FY23, Organic Recycling's revenue grew 44 percent year-on-year to Rs 25.34 crore

Organic Recycling Systems shares listed at Rs 215 on the BSE SME platform, indicating 7.5 percent premium to the issue price of Rs 200.  The public issue was subscribed 2.21 times in the retail category, times in the QIB (qualified institutional buyers) category, and 4.28 times in the NII (non institutional investor) category.

After opening at Rs 215, the stock continued to gain. It touched a high of Rs 225.70 around 11 am.

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Organic Recycling Systems Limited is an engineering company offering sustainable waste management solutions. The company reported a net profit of Rs 3.65 crore in FY23, while in FY21 and FY22 it had clocked losses.

Its business verticals include the Build Own Operate Transfer (BOOT) model, the Engineering Procurement and Commissioning (EPC) model and the Supply of Key Equipment. In FY23, Organic Recycling's revenue grew 44 percent year-on-year to Rs 25.34 crore.

At the issue price, Organic Recycling Systems' market capitalisation stood at Rs 153.99 crore and price-to-earnings ratio at 25.54x. The m-cap-to-sales ratio translates to 6.07 times.

In the last financial year, the company clocked return on equity (RoE) of 21.76 percent and return on capital employed (RoCE) of 13.06 percent.

No analyst covered this IPO.

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