Greenhitech Ventures Limited IPO

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Greenhitech Ventures Limited operates within the energy sector, specializing in trading various petroleum-based products such as biofuels, bitumen, light density oils, and furnace oils. The company caters to diverse industrial requirements, emphasizing the supply chain’s effectiveness, efficiency, and economy. A significant part of your operations includes acting as a job worker for Ethanol manufacturing in government-owned distilleries, a service that underscores your adaptability and strategic alignment with renewable energy sources.

Corporate Evolution and Legal Structure

The journey from a partnership firm named Greentech Hydrocarbons to a publicly traded entity under Greenhitech Ventures Limited is notable for its strategic rebranding and legal restructuring. This transition, culminating in the company’s public listing in October 2023, signifies a strategic evolution aimed at capitalizing on market opportunities and enhancing corporate governance.

Market Position and Strategic Goals

Their strategic focus on agriculture, innovation, and investment in Research & Development, particularly in biofuels as alternatives to traditional fossil fuels, positions Greenhitech Ventures as a forward-thinking player in the energy sector. The emphasis on qualitative products, timely deliverables, and cost efficiency has fostered long-term relationships with customers, further strengthened by government support and the growing industry demand for biofuels.

Conclusion

Greenhitech Ventures Limited exemplifies a dynamic and strategically positioned company within the energy sector, particularly in renewable energy sources like biofuels. The company’s focus on innovation, quality, and efficiency, backed by a seasoned leadership team and a favorable regulatory environment, positions it well for future growth and success in a competitive landscape. The company’s adaptability and commitment to sustainability are not just strategic advantages but also align with global shifts towards greener energy solutions, indicating a promising outlook for Greenhitech Ventures in the energy sector.

Objects of the Greenhitech Ventures Limited IPO:

The Net Proceeds are proposed to be used in accordance with the details provided in the following i. To Meet Working Capital Requirement ii. General Corporate Expenses
DRHP of Greenhitech Ventures Limited IPO
RHP of Greenhitech Ventures Limited IPO

Greenhitech Ventures Limited IPO Details:

Open Date: Apr 12 2024
Close Date: Apr 16 2024
Total Shares: 1,260,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 6.30 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 50 Per Equity Share
Listing At: BSE SME
Listing Date: Apr 19 2024

Promoters And Management:

Mr. Naved Iqbal, aged 37 years is Chairman cum Managing Director and also Promoter of the Company. He holds degree of Master of Business Administration. He was originally appointed on the Board on May 14, 2023 and further designated as Chairman cum Managing Director w.e.f. October 14, 2023 for a period of 5 years, not liable to retire by rotation. He is having experience of 12 years in Renewable Energy industry. He has been instrumental in taking major policy decision of the Company. He is playing vital role in formulating business strategies and effective implementation of the same. He is responsible for the expansion and overall management of the business of the Company. His Vision to do business with ethics & to keep up with latest developments, Consistent Innovation in Technology and Management practices has helped him provide an overall growth for the company. Mr. Mohammad Nadeem, aged 34 years is the Whole-Time Director and also Promoter of the Company. He holds Bachelor degree of Technology in Computer Science and Engineering. He was originally appointed on the Board on May 14, 2023 and further designated as Whole-Time Director w.e.f. October 14, 2023 for a period of 5 years liable to retire by rotation. He is having experience of 08 years in Renewable Energy Industry. He has expertise in the field of Market research, People Management and Team leading which helped for the overall development of the Company. Mr. Arham Anees, aged 27 years is Non-Executive Director of the Company. He was originally appointed on the Board on July 18, 2023 and further designated as Non-Executive Director w.e.f. October 14, 2023. He is Intermediate qualified and having experience of 08 years in the production, quality and marketing.

Financials of Greenhitech Ventures Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
10M-FY24
Revenue from Operations 4,007 6,612 2,504 475
Other Income 1 0 0 0
Total Revenue 4,008 6,612 2,504 475
Cost of materials consumed 3,681 5,870 2,032 241
Employees Benefit Expenses 74 86 76 46
Other Expenses 187 398 240 95
EBITDA 66 257 156 93
Depreciation & Amortisation 11 12 14 7
Finance Cost 14 17 45 31
EBIT 54 245 142 86
OPM (%) 1.64% 3.89% 6.22% 19.54%
PBT 40 228 98 55
Tax 16 93 40 15
PAT 24 135 57 41
NPM (%) 0.61% 2.04% 2.29% 8.57%
No.of Shares 47 47 47 47
EPS 0.51 2.87 1.21 0.86

Comparison With Peers:

Note:- There are no listed companies in India that are engaged in the business line similar to this company.

Recommendation on Greenhitech Ventures Limited IPO:

Review and Recommendation of Greenhitech Ventures by team IZ is 4/10. 1. Greenhitech Ventures Limited, a company specializing in the trading of petroleum-based products and the operation and maintenance of ethanol production in government-owned distilleries across India. 2. Business Model and Operations Core Activities: The company trades in a variety of petroleum-based products including biofuels, bitumen, light density oils, and furnace oils, catering to diverse industrial needs. Additionally, it holds a unique position in operating and maintaining ethanol manufacturing units in government-owned distilleries, without owning any manufacturing facilities itself. Ethanol Production: Greenhitech Ventures Limited operates as a job worker for ethanol manufacturing, managing the production process in government distilleries and transferring the produced ethanol back to them, thus avoiding the complexities of procurement and selling in this segment. 3. SWOT Analysis Strengths i. Quality Assurance and Standards             ii. Experienced Management Team  iii. Satisfied customer with quality               iv. Strong business model Weakness i. Heavy dependence on suppliers                ii. High working capital requirement Opportunities i. Expanding new geographical area           ii.Opportunities in Indian Market  iii. Government thrust for development will boost in rise in demand Threats i. Increased Competition from Big Players    ii. Change in Government Policies iii. Rising labour wages                                    iv. Fluctuation in Raw Material Price v. There are no entry barriers in our industry which puts us to the threat of competition from new entrants 4. Competition: The company navigates a moderately competitive landscape with a mix of organized and unorganized players, focusing on ensuring product quality, timely delivery, and competitive pricing to maintain its competitive edge. 5. The Revenue has decreased from Rs.40 Crores in FY21 to Rs.25 Crores in FY23. 6. The EBITDA has Increased from 66 Lakhs in FY21 to 1.5 Crores in FY23. 7. The PAT has Increased from 24 Lakhs in FY21 to 57 Lakhs in FY23. 8. As per FY23, CFO/EBITDA is 0.97, As per FY24, EPS is 1.03, 9. Market Capitalization is 23.5 Crore & P/E is 48.12x based on FY24.

Lead Manager of Greenhitech Ventures Limited IPO:

  1. Beeline Broking Limited

Registrar of Greenhitech Ventures Limited IPO:

  1. Skyline Financial Services Private Ltd

Company Address:

Greenhitech Ventures Limited B27/92 K1 Jawahar Nagar Colony Bhelupura Varanasi- 221010 Phone: +91-9336875025 Email: info@greenhitech.org Website: https://www.greenhitech.org/

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