Hi-Green Carbon Limited IPO

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i. Hi-Green Carbon is engaged in the business of waste tyres recycling. Their manufacturing plant operates on continuous pyrolysis process. It is an uninterrupted working method with continuous feeding and discharging system controlled by the program logic controller system. The process is fully automatic and requires almost no human intervention. Following continuous pyrolysis, we process the end-of-life tyres (ELTs) pieces to produce energy components and raw materials. The major products are Recovered Carbon Black (rCB) and Steel Wires under Raw Material Category, Fuel Oil and Synthesis Gas under Energy components category. In order to utilise the energy in efficient manner, we utilise said synthesis gas, produced as by product of the pyrolysis process, for also manufacturing sodium silicate commonly known as raw glass.

ii. They follow the highest quality practice and compliant with Highest Environmental, Health, and Safety (EHS) in recycle industries. The company has modern, Supervisory Control and Data Acquisition (SCADA) operated in integrated recycling plant at our manufacturing plant situated in Rajasthan. Their production facility at Rajasthan is installed with capacity of recycling of 100 MT waste tyres per day. The company has been certified with Environmental Management Measures with ISO 14001:2015, Occupational Health & Safety Management standards with ISO 45001:2018, Quality Management Standards with ISO 9001:2015, Good Manufacturing Practice (GMP) and RoHS. Our product is REACH complied in terms of sustainability standards.

iii. The company is proposing a new manufacturing plant in Dhule district of Maharashtra, with capacity of recycling of 100 MT waste tyres per day. The company has already acquired land admeasuring 21,500 sq. meters for the said purpose. The said expansion will add to the company’s existing tyre processing capacity

Competitive Strengths

i. Experienced Promoter and Management Team
ii. Strategic Location of Manufacturing Facilities
iii. Innovative Technology

Objects of the Hi-Green Carbon Limited IPO:

The Issue Proceeds from the Fresh Issue will be utilized towards the following objects: i. Setting up of new Manufacturing Unit at Maharashtra. ii. To Meet Working Capital Requirements. iii. General Corporate Purpose. iv. To meet Public Issue Expenses. The total number of shares issues is: - a. Fresh issue of 5,990,000 shares. b. offer for sale of 1,050,000 shares.

Hi-Green Carbon Limited IPO Details:

Open Date: Sep 21 2023
Close Date: Sep 25 2023
Total Shares: 7,040,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue IPO
Lot Size: 1600 Shares
Issue Price: ₹ 71 - 75 Per Equity Share
Listing At: NSE Emerge
Listing Date: Oct 04 2023

Promoters And Management:

Mr. Amitkumar Hasmukhrai Bhalodi, aged 39 years, is Managing Director cum CFO and Promoter of the Company. He holds the Degree of Company Secretary from Institute of Company Secretaries of India. He was appointed as a NonExecutive Director of the Company since incorporation. Thereafter, he was redesignated as Managing Director of the company for the period of 5 years w.e.f. February 01, 2023. Further, he was also appointed as CFO of the Company w.e.f. February 01, 2023. He is having more than 15 years in the field of Corporate, Finance, Business Management, Manufacturing of Carbon Products, Renewable Energy Equipment, Spices and Foods products. He manages Commercial Activities, Sales, Purchase, Marketing & Finance etc. of the company. Dr. Shaileshkumar Vallabhdas Makadia, aged 54 years, is the Chairman, Non-Executive Director and Promoter of the Company. He holds the Degree of Bachelor of Veterinary Science and Animal Husbandry from Gujarat Agricultural University. He was appointed as an Executive Director of the Company w.e.f. September 16, 2011.Thereafter, he resigned as director of the company w.e.f. March 25, 2018. Further He was appointed as director of the company w.e.f. October 15, 2022. Now he is appointed as Chairman and Non-Executive Director of the company w.e.f. February 01, 2023. He has an Experience of more than 19 years in the field of Biomass Briquetting, Renewable Energy, Food Processing and Recovered Carbon Black & Waste Recycling process. He manages the Finance, Production, Marketing, and overall management of Radhe Group of Company since inception and also manage Technical Research and Developments of the company. Mr. Nirmalkumar Karshandas Sutaria, aged 52 years is the Whole Time Director and Promoter of the Company. He has completed Bachelor of Commerce from Saurashtra University. He was appointed as Non-Executive Director w.e.f. March 30, 2012. Thereafter, he was redesignated and appointed for 5 years as Whole Time Director of the Company w.e.f. February 01, 2023 liable to retire by rotation. He is having an overall experience of 19 years in the wholesale trading and more than 11 Years of experience of Waste Recycling and Recovering Carbon Black. He manages Factory operations and production department of the company.

Financials of Hi-Green Carbon Limited IPO:

Particulars (Lakh) 2021 2022 2023
Revenue From Operations 2,427 5,111 7,852
Other Income 2 3 51
Total Income 2,429 5,114 7,903
Cost of Goods Sold 1618 3,321 4,759
Employees Benefit Expenses 107 117 136
Other Expenses 346 788 963
EBITDA 358 888 2,045
Depreciation 297 304 312
Finance Cost 48 118 120
EBIT 61 584 1733
OPM 14.74% 17.36% 25.88%
PBT 13 466 1,613
Tax 4 99 528
PAT 9 367 1,085
NPM 0.37% 7.18% 13.73%
No. of Shares 249.9 249.9 249.9
EPS 0.04 1.47 4.34

Comparison With Peers:

There is no listed companies related to this company.

Recommendation on Hi-Green Carbon Limited IPO:

Review And Recommendation of Hi-Green Carbon SME IPO by IZ team is 4/10

Business Overview

Hi-Green Carbon Limited, initially incorporated as Shantol Green Hydrocarbons in 2011, has undergone several name changes and ownership structures. Now part of the Radhe Group of Energy, the company operates in the waste tyre recycling sector. Employing a fully automatic continuous pyrolysis process, the company focuses on converting waste into valuable resources like Recovered Carbon Black, Steel Wires, Fuel Oil, and Synthesis Gas. The latter is also used for manufacturing sodium silicate, also known as raw glass. Headquartered in Rajkot, Gujarat, Hi-Green Carbon Limited is planning an expansion with a new plant in Dhule, Maharashtra, mirroring its existing 100 MT per day capacity in Rajasthan.

Financial Metrics (2021-2023)

1. The company has shown significant growth in key financial metrics. 2. Revenue and Profit After Tax (PAT) have grown to ₹78.52 Cr and ₹10.85 Cr respectively in 2023. 3. The Interest Coverage Ratio improved from 1.23 in 2021 to 14.04 in 2023, signaling better coverage for interest expenses. 4. The Debt-to-Equity (D/E) Ratio has decreased, signifying a more balanced debt structure. 5. Return on Equity (ROE) and Return on Capital Employed (ROCE) have seen considerable increases, indicating better profitability and capital efficiency.


The IPO is priced at a P/E ratio of 20x and has an estimated market capitalization of ₹195 Crores. These metrics may appear on the higher side, especially when compared to industry averages.

Risk and Considerations

1. Company and its Promoters, has in past defaulted in payment of income tax and has certain outstanding income tax demands. Lot of Income Tax Defaults in the past does not augur well for the company. 2. They are raising ~16 Cr from IPO to fund a manufacturing unit. Total cost of Project is ~40 Cr. Out of this ~31 Cr will be for purchasing machinery, and out of that ~20 Cr of Machinery will be purchased from their Related Party. This is risk in the business because we do not know whether the deal is happening at Arm Length price basis or not. 3. The high valuation demands close scrutiny, especially in terms of the company's ability to meet growth expectations. Also, investors should consider the ownership structure, as RNG Finlease Private Limited holds a majority share of 71.58%.


Hi-Green Carbon Limited presents a unique proposition in the waste management and recycling sector with promising growth prospects. However, the high IPO valuation calls for detailed due diligence. The company's strong focus on sustainability and plans for expansion are positive indicators, but the valuation must be weighed against these growth prospects and sector averages. Investors are advised to conduct their own research and consult financial advisors for a comprehensive understanding before making any investment decisions.

Lead Manager of Hi-Green Carbon Limited IPO:

  1. Beeline Broking Limited

Registrar of Hi-Green Carbon Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Hi-Green Carbon Limited G-557, Lodhika Industrial Estate, Metoda G.I.D.C. Gate No. 3, Metoda, Lodhika Rajkot - 360021 Phone: +91 92275 74010 Email: compliance@higreencarbon.com Website: https://www.higreencarbon.com/index.php

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