Badri Cotsyn IPO

About Badri Cotsyn Limited IPO

Badri Cotsyn Limited IPO is an IPO of up to 57,00,000 equity shares. It consists of a fresh issue of up to 57,00,000 equity shares. The shares will be allotted on TBA. The credit of shares to the demat account will take place on TBA and the initiation of refunds will take place on TBA.

Objective of Badri Cotsyn Limited IPO

• Construction of factory building and purchase of plant and machinery.
• Repayment and/or pre-payment or repayment, in full or part, of certain outstanding borrowings availed by the company.
• General corporate purposes.

Industry Outlook

The India rPET market reached a value of USD 80 crores in 2023, growing at a CAGR of 19.5% during 2017-2023. Moving forward, the India rPET market is expected to reach a value of USD 589 crores by 2029, growing at a CAGR of 35.8% during 2024-2029. The PET bottles market size is estimated at 2.52 crores metric tons in 2024, and is expected to reach 3.09 crores metric tons by 2029, growing at a CAGR of 4.18% during the forecast period (2024-2029).

Company Information

Badri Cotsyn Limited specialises in manufacturing High-Tenacity Recycled Polyester Staple Fibre (R-PSF) from post-consumer Polyethylene Terephthalate (PET) bottles. Their product portfolio is renowned for its excellent resilience properties. Finished products are supplied to over 100 esteemed customers across India, Europe, and the Middle East. Their R-PSF products cater to diverse industries, including textiles (spinning units), non-woven geotextiles, filtration fabrics, and automotive fabrics.

Risks of Badri Cotsyn Limited IPO

• Volatility in raw material prices and challenges in procurement.

• Given the size of the opportunity in the food-grade rPET segment, several players are setting up plants, which can lead to a high level of competition.

• Significant portion of the recycled PET is being used to make recycled polyester staple fibre. Volatility in the supply and pricing of raw materials may have an adverse effect on the business, financial condition and results of operations. Absence of agreements/arrangements with suppliers and failure of suppliers to meet their obligations may have a material adverse effect on their business, results of operations and financial condition.

Anchor Investor Information

The Anchor Investor Bid/Issue Period shall be one Working Day prior to the Bid/Issue Opening Date.

IPO Registrar and Book Running Lead Managers

Book running lead managers:

Swastika Investmart Limited

Registrar for the IPO is Integrated Registry Management Services Private Limited

Business Model

The company earns its revenue by offering the following products and services:

• High Tenacity Recycled Polyester Staple Fiber (R-PSF)
• EPR (Extended Producer Responsibility) Credits Services
• Job Work Services

Company Growth Trajectory

In fiscal 2024, their revenue from operations decreased by ₹24.77 crores, or 11%, from ₹225.17 crores in fiscal 2023 to ₹200.40 crores in fiscal 2024. Other income decreased to ₹0.38 crores in fiscal 2024 as compared to ₹0.58 crores in fiscal 2023, mainly due to a decrease in interest income from banks and others.

In fiscal 2023, their revenue from operations increased by ₹47.40 crores or 26.66%, from ₹177.77 crores in fiscal 2022 to ₹225.17 crores in fiscal 2023. The increase in the year 2023 was due to increased capacity utilisation of the plant and a better realisation price. Other income increased from ₹0.15 crores in fiscal 2022 to ₹0.58 crores in fiscal 2023 due to an increase in interest income from banks and other sources.

Company Market Position

The company has consistently delivered good financial performance, driven by their focus on operational excellence. They have achieved sustained revenue and EBITDA growth, while maintaining profitable margins, without relying on external funding or high leverage. The company’s ability to fund capital expenditures through internal accruals, efficient asset utilization, and prudent working capital management demonstrates their commitment to financial discipline.

The company’s management team’s experience and their understanding of the industry, regulatory affairs, manufacturing, quality control, sales, marketing, and finance enables them to continue to take advantage of both current and future market opportunities within India and abroad.

How To Check Allotment Status of Badri Cotsyn Limited IPO?

You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar Integrated Registry Management Services Private Limited. To check the status on the BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt (Equity in this case)
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Badri Cotsyn Limited
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

Follow these steps to know the allotment status on the registrar’s website:

• Visit the Integrated Registry Management Services Private Limited website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select Badri Cotsyn Limited from the drop-down
• Enter your PAN number or Application number
• Click on “Submit” to know the allotment status