The shares of the leading PET Waste Recycling company gained around 6% to an intraday high of ₹1,119.10 per share a day after the company board approved raising funds via QIP.
At 2:25 p.m, Ganesha Ecosphere Ltd shares were quoted at ₹1,138.25 per share, up 7.69 percent from the previous close price. The company has a market capitalization of ₹2,442 crores.
Ganesha Ecosphere’s board had approved raising funds to ₹350 crores through Qualified Institutions Placement (“QIP”). And the company has planned to use the funds to increase capacities in the B2B portfolio. As per the CNBC-TV18 report.
Further, a base offer size is ₹300 crore along with an option to upsize worth another ₹50 crore. The floor price of the issue has been fixed at ₹995.06 per share, which is a 5.7% discount on Tuesday’s closing price.
Ganesha Ecosphere Ltd is a leading polyethylene terephthalate (PET) Waste Recycling company in India and is engaged in the manufacturing of Recycled Polyester Staple Fibre (RPSF), Spun yarn, and dyed texturized yarn in India.
In FY23, the company recycled 6.27 bn bottles compared to 3.35 bn bottles recycled in FY13 and a CAGR of 6.50% in the last 10 years. The company has 4 facilities and caters to more than 500 customers across india.
Ganesha Overseas, Nepal, Started commercial production in Feb 2023. Current capacity utilization has ramped up to 70% and is expected to further ramp up to over 80% by the end of Q3, 2024
Ganesha Ecosphere Ltd shares have gained 9 percent in the last six months and 26 percent in a year.
The company’s revenue has declined by 10% year on year, from ₹312 crore in Q2FY23 to ₹278 crore in Q2FY24. During the same period, Net profit decreased by 85% from ₹19.70 crores to ₹2.80 crores.
Written by Omkar Chitnis
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