Regreen-Excel EPC Files Draft IPO Papers With Rs 350 Crore Fresh Issue
Of the proceeds from the fresh issue, Rs 180 crore will be used to purchase machinery, equipment, related civil work, software design and project management.
Ethanol-maker Regreen-Excel EPC India Ltd. filed its preliminary papers with SEBI to raise funds through an initial public offering. The offer consists of a fresh issue of Rs 350 crore and an offer for sale of 1.14 crore shares.
Promoters selling shares in the OFS portion include Sanjay Shrinivasrao Desai, Tushar Vedu Patil, Alimuddin Aminuddin Sayyed, Kiran Sudhakar Gavali, Rokesh Luis Mascarenhas and Sagar Satish Raut.
Of the proceeds from the fresh issue, Rs 180 crore will be utilised for capital expenditure, Rs 55 crore for re-payment of debt, and Rs 38 crore for funding margin money requirements for the purpose of availing bank guarantees and the rest for general corporate purposes.
The capex will involve purchase of machinery, equipment, related civil work, software design and project management.
The IPO will be managed by IIFL Securities Ltd. and ICICI Securities Ltd.
About Regreen-Excel
Regreen-Excel is engaged in designing, manufacturing and supplying ethanol plants and caters to sugar, chemicals, agri-chemicals, food, pharmaceuticals, cement and steel industries. Some of its key clients include Balrampur Chini Mills Ltd., Globus Spirits Ltd. and India Glycols Ltd.
It has executed projects in India, Turkey and Thailand.
The company reported a revenue from operations of Rs 1,930 crore in the financial year ended March 31, 2024. Net profit came in at Rs 60 crore.
As of July 15, it has an order book of 64 ongoing projects worth Rs 3,451 crore.
The Indian ethanol market has grown from Rs 1,250 crore in fiscal 2018 to Rs 10,360 crore last year, at a compounded annual growth rate of 42%. It is expected to reach Rs 12,440 crore this year, as the country is expected to build necessary capacity to meet 20% blending target by then.
