Resgen Ltd. engages in making Pyrolysis Oil used in furnaces from waste plastic. Incorporated in 2018, Resgen envisioned making environmentally sustainable projects highly scalable and viable.
They have set up a chemical recycling plant in Vikramgad (Palghar), Maharashtra. They use all types of waste plastic in producing Pyrolysis Oil and also treat the by-product, Carbon, as a substitute for coal and Gas.
ResGen Limited IPO Objective
The company proposes to utilise the funds from the fresh issue IPO on the following heads.
- Purchase of land to set up a new manufacturing unit
- To meet working capital requirements and general corporate purposes
Why should you invest in the ResGen Limited IPO?
Here are your top reasons to invest in the IPO.
- The company works on projects to make plastic waste treatment sustainable and scalable. They were awarded an Indian patent for their manufacturing unit in 2021.
- The company has the engineering abilities to produce Pyrolysis oil, a complex carbon chemical. Pyrolysis oil has multiple uses as a fuel for boilers and furnaces, can be distilled to produce diesel and is a feedstock for producing virgin Polymer.
- Renewable energy is an upcoming sector with great investment opportunities. In the Union budget of 2023, the government has announced a bunch of policies to boost green energy and environmentally sustainable projects.
ResGen Limited Company Financials
Parameters | FY22 | FY21 |
---|---|---|
Total revenue | ₹ 480.81 | ₹ 2.00 |
Profit After Tax | ₹ 73.50 | ₹ 0.63 |
EPS | 0.59 | 0.01 |
Total Asset | ₹1,371.31 | ₹1,110.01 |
Total Borrowing | ₹932.92 | ₹961.33 |
Know before investing
Strengths
3The manufacturing unit is strategically located where it can easily source raw materials.
The company focuses on enhancing brand recognition through targeted marketing and establishing a presence in the major markets.
They have obtained a patent for their manufacturing process.
Risks
3It is a relatively new business (commercially operative from 2021-22). There isn’t enough performance and financial data available for fundamental analysis.
The segment is highly competitive, with multiple local players around.
It is a high-risk segment which can get impacted by government policies.