Rungta Greentech Limited (RGL), a prominent producer of recycled and virgin plastic items, said that it has filed Draft Red Herring Prospectus (DRHP) with the NSE Emerge.
The proposed offering includes a fresh issuance of 38 lakh Equity Shares, each having a face value of ₹10. Managing the book running process is Beeline Capital Advisors Private Limited, while Link Intime India Private Limited has been appointed as the Registrar to the issue.
As per the DRHP, RGL aims to allocate a significant portion of the funds raised through its Initial Public Offering (IPO) to its wholly owned subsidiary, Rungta Eco Extrusions Private Limited. This investment will facilitate the establishment of a new manufacturing facility. Additionally, the company intends to utilize the remaining funds for general corporate purposes and to issue proceeds.
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RGL’s strategic plans involve expanding its current business line by introducing new products into its range. This expansion will take place at the proposed new manufacturing plant in Howrah, West Bengal, operated by its wholly-owned subsidiary, Rungta Eco Extrusions Private Limited. The envisioned facility will act as a forward integration to the existing product line, incorporating Food-Grade Recycled PET Resin and Recycled HDPE/PP granules into the company’s portfolio.
Based in Kolkata, Rungta Greentech specializes in the production of recycled and virgin plastic items, including Recycled PET (Polyethylene Terephthalate) Flakes (RPF), Polyester Dope-Dyed Monofilament Yarn (PMY), Nylon Monofilament Yarn (NMY), as well as Blow- and Injection-Molded Jars and Caps (BM & IM). The company’s diverse product range serves a wide array of industries, notably packaging, textiles, aquaculture, agriculture, and the edible oil sector.
Operating from two manufacturing facilities located in Howrah, West Bengal, Rungta Greentech is known for its production of Recycled PET flakes, Polyester Dope-Dyed Monofilament Yarn, Nylon Monofilament Yarn, and Injection-Molded Jars and Caps. Its distribution network spans over 20 states, including Uttarakhand, West Bengal, Gujarat, Telangana, and Uttar Pradesh. Moreover, the company exports its products to international markets such as Oman, Austria, Israel, and the United States of America.
Founded by the promoter duo Deepak Rungta and Praveen Rungta on August 3, 2005, the company saw its Blow & Injection Molding unit commence operations in 2007. Benefitting from over 45 years of combined expertise, the promoters meticulously developed an extensive network of retailers, distributors, and processors over the years. With a strong foundation laid, RGL is strategically positioned to leverage current and future growth prospects, boasting a skilled team comprising management professionals specializing in manufacturing, supply chain, and logistics.
In the first half of the current financial year, ending September 30, 2023, the company reported revenue of Rs. 23.76 crore and a profit (PAT) of Rs. 2.45 crore. In the preceding fiscal year 2022-23, it achieved a revenue of Rs. 49.38 crore and a profit (PAT) of Rs. 1.82 crore.
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Published: 13 Mar 2024, 07:14 PM IST