BSE SME ResGen slides on debut

Shares of ResGen were trading at Rs 46.55 at 11:35 IST on the BSE, a discount of 0.96% compared with the issue price of Rs 47.

The scrip was listed at Rs 49, a premium of 4.26% compared with the issue price.

So far, the scrip hit a high of Rs 49 and a low of Rs 46.55. At the counter, 8.61 lakh shares of the company had changed hands till now.

The initial public offer (IPO) of ResGen was subscribed 2.38 times. The issue opened for bidding on 28 February 2023 and it closed on 2 March 2023. The price band of the IPO was Rs 45-47 per share.

The IPO comprised fresh issue of 60,00,000 equity shares. About 3,00,000 equity shares will be reserved for subscription by market maker to the issue. The net issue comprises of 57,00,000 equity shares. The issue and the net issue will constitute 28.61% and 27.18%, respectively of the post issue paid-up equity share capital of the company.

The promoter and promoter group shareholding will dilute to 67.22% post IPO from 94.15% pre-IPO.

The company intends to utilize the net proceeds from the issue for funding working capital requirements, purchase of the land where the company's manufacturing facility is currently situated and general corporate purpose.

ResGen is engaged in the process of manufacturing Pyrolysis Oil (a substitute for furnace oil) from all kinds of waste plastics. Pyrolysis refers to a thermal degradation of long-chain organic molecules into smaller hydrocarbons, making it possible to repurpose all types of plastic waste. The company has set up a chemical recycling plant in Vikramgad (Palghar), Maharashtra, considering its proximity to the Municipal Corporations of Mumbai, Thane, Kalyan & Dombivli.

As of December 2022, the company had approximately 08 workers.

The company recorded a revenue from operations of Rs 12.65 crore and net profit of Rs 2.46 crore for the period ended on 5 December 2022.

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