| Issue Value | ₹16.10 CrPreferential Issue |
|---|---|
| Market Cap | ₹241.94 CrSmall Cap |
| Revenue Growth | 116.86%Annual YoY |
| P/E Ratio | 9.65Sector PE 25.16 |
| Deal value | ₹16.1 Cr |
| Share of market cap | 6.7% |
Key highlights
- Board approved issuance of 10 lakh fully paid-up equity shares
- Issue price fixed at ₹161 per share, including a premium of ₹151
- Total fund raise aggregates to ₹16.10 crore via private placement
- Promoter Sarang Bhand's stake to increase from 15.07% to 20.19%
- Shareholder approval to be sought at the AGM on September 30, 2026
Details of the Preferential Allotment
Organic Recycling Systems Limited is executing a strategic fund-raise by issuing up to 10,00,000 equity shares with a face value of ₹10 each. The shares are priced at ₹161 per unit, representing a significant premium over the face value. The entire allotment is dedicated to Mr.
Sarang Bhand, the company's promoter and Managing Director, for cash consideration. This capital infusion will be processed through a preferential issue on a private placement basis, adhering to Chapter V of the SEBI ICDR Regulations. The board has scheduled an Annual General Meeting for September 30, 2026, to secure the necessary shareholder mandates for this transaction.
Impact on Shareholding and Capital Structure
The proposed allotment will lead to a notable shift in the company's ownership structure. Currently, the promoter group holds 23,50,509 equity shares, representing 15.07% of the total paid-up capital. Following the successful subscription and allotment of the new 10,00,000 shares, the promoter's holding will rise to 33,50,509 shares, equivalent to 20.19% of the post-issue expanded capital.
This move indicates a consolidation of promoter equity and a commitment to the long-term growth trajectory of the enterprise. The minimum price for the issue was determined at ₹160.01 per share based on regulatory formulas, with the final issue price set slightly higher at ₹161.
Business and Technology Profile
- Operates in the Waste Management sector specializing in Municipal Solid Waste (MSW) solutions
- Utilizes proprietary DRYAD anaerobic digestion technology to convert organic waste into biogas and compost
- Focuses on Waste-to-Energy projects, contributing to India's renewable energy and sanitation goals
- Maintains a significant operational presence with large-scale waste processing plants in cities like Solapur
- Leverages internal engineering capabilities to design and implement sustainable waste treatment infrastructure
Financial and Market Position
The company exhibits strong growth momentum with annual revenue rising 116.86% to ₹105.07 crore and net profit increasing by 59.56% to ₹25.08 crore. Despite this expansion, the stock trades at a Price-to-Earnings (PE) ratio of 9.65, which is lower than the waste management industry average PE of 26.77. The company reports a healthy Return on Equity (ROE) of 20.37% and a Return on Assets (ROA) of 11.92%.
With a market capitalization of approximately ₹241.94 crore, the current fund raise of ₹16.10 crore represents a significant addition to the company's financial resources for future scaling.
| Share price | ₹155.1 |
|---|---|
| Market capitalisation | ₹241.94 Cr |
| Revenue (annual) | ₹105.07 Cr |
| Net profit (annual) | ₹25.08 Cr |
| P/E (TTM) | 9.65×Sector 25.16× |
| Promoter holding | 15.07% |
| FII holding | 0%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by Organic Recycling Systems Ltd announcing the outcome of the board meeting regarding a preferential issue of equity shares. Market figures from a third-party data provider.
