Metal Recycling Startup Nupur Recyclers Files Draft Prospectus for IPO with NSE Emerge

Nupur Recyclers, the pioneer in metal scrap processing and recycling in India has filed a draft prospectus with the NATIONAL STOCK EXCHANGE (NSE) Emerge - a platform for SMEs, seeking to raise funds via an initial public offering (IPO).

The issue will comprise a fresh offering of 57,00,000 shares. The company has appointed investment banks such as Corporate Capital Ventures Private Limited and ICICI Bank to manage its public issue. Proceeds from the issue will be used to fuel the company’s next level of growth.

Nupur Recyclers clocked over 169.82% growth in revenue in H1 FY 2021-22 over H1 FY 2020-21, with gross revenue of approximately INR. 83 Cr. The growth is largely driven by the widespread demand for recycled metal across the country, especially from sectors such as Automotive, Power, Home furnishing, and Roads & Transport.

The demand is efficiently met by the company’s strong partnerships with ferrous and non-ferrous metal scrap suppliers from various countries from Europe and the Gulf region from where it imports substances such as shredded Zinc Scrap, Zinc die-cast scrap, Zurik SS scrap, and Aluminium Zorba grades. In the ever-growing market for scrap metal recycling, Nupur Recyclers has been clocking steady growth since its inception.

About Nupur Recyclers

Nupur Recyclers is the pioneer in metal Scrap processing and recycling in India. Incorporated in 2018-2019 by Mr. Rajesh Gupta and Mr. Anoop Garg, Nupur Recyclers is a leading importer and processor of ferrous and Non-ferrous metal scrap. The company is associated with shredded & Floatation plant in Europe & USA for the import of substances such as shredded Zinc Scrap, Zinc die-cast scrap, Zurik SS scrap, and Aluminium Zorba grades. The company is set to stride into the recycling of lithium-ion batteries through its strategic partnerships with trusted suppliers in future.

Under the leadership of the -founders, the company witnessed significant growth Y-o-Y in revenue in FY 2020-21 when it clocked INR 105.98Cr and is expected to record more than 50% growth this fiscal year.

From processing Metal scrap material to producing high-quality material, their aim is to keep the environment safe. Their vision is to be renowned globally for their innovative business approach while providing 100% genuine services to the customers by providing premium products & services. As a corporate citizen, the company has laid down guidelines for undertaking social projects for the welfare & sustainable development of the communities at large, particularly for the poor and underprivileged class.

Wire & Cable Manufacturer, V-Marc Becomes 1st Manufacturing Co. from Uttarakhand to be Listed on NSE Emerge

Wire & Cable Manufacturer, V-Marc files for IPO

First manufacturing Company from Uttarakhand to be listed on NSE Emerge

HARIDWAR, India, Feb. 19, 2021 /PRNewswire/ -- Haridwar based, Wires and Cables manufacturer, V-Marc India Ltd, has filed its document with the regulator for an Initial Public Offering of upto 68,40,000 Equity Shares of Face Value of Rs. 10 per equity share. As per market sources, the company plans to raise about Rs. 25 - 30 crores. The company may consider to do a private placement of 8,40,000 equity shares subject to consideration and consultation of the Book Running Lead Manager.

The company intends to utilize the net proceeds from the issue to fund the capital expenditure for its proposed new manufacturing facility at Roorkee to the tune of Rs. 15.00 crore, for working capital requirements to the tune of Rs. 5.00 crore and balance for general corporate purposes.

The company has an operating history of around 15 years and manufactures and markets BIS and CE certified wires and cables under the brand name 'V-MARC' out of its two manufacturing facilities in Haridwar, Uttarakhand. The Company sells their products through a diversified sales & distribution mix, majorly by 1) securing government tenders for supply to government projects 2) supply to EPC contractors for turnkey projects and 3) their dealer & distribution network of more than 650 dealers and direct sales to few private companies. It has widespread domestic presence through its customers spread over 21 states. It caters to a diverse customer base comprising government companies, PSUs, retailers, distributors, dealers and contractors across industries including power, real estate, telecom and railways.

In FY 20, the company had a revenue from operations of Rs 171.24 cr with an EBITDA of Rs. 1304.95 lakhs and PAT of Rs. 464.60 lakhs.

The wires and cables industry which consists of power cables, building wires, telecom cables, control & instrumentation cables, optical fiber cables and other cables is projected to grow at a CAGR of 11% and is a direct beneficiary of development of power generation and distribution and infrastructure and comprises a share of 40% of the electrical industry in the India.

The proposed equity shares are to be listed on the Emerge Platform of the National Stock Exchange.

The issue is lead managed by Pantomath Capital Advisors Limited. SME market which saw a lull in the past two years due to the market conditions and economic scenario, is gearing up once again to be revived with interesting companies filing for an IPO on SME Exchanges. The past six months saw bumper listings of many large companies on the Main Board which indicates positive market sentiments and should be a boost for SME markets as well in the coming year.

About V-Marc

V-Marc is one of the global leader in providing reliable and consistent quality of products, we enable our clients to achieve more and outperform their competitors and stay ahead of the innovation curve. The growth of the latter is the first stepping stone towards the growth of the company and hence customer's satisfaction is its prime objective. V-Marc has earned the trust and reputation in India by winning the customer's confidence. Several thousand kilometre of LT PVC cables of 1.1 KV voltage grade, several lacs kilometers of wires & Cables have been manufactured and are in operation in different parts of India.V-marc's LT XLPE / PVC Cables are preferred choice in Power Plants, Distribution Systems, Heavy Industries, and many other utilities. The Organization is also committed to comply with all applicable environments, health & safety legislation and all requirements of interested parties. We are poised for a big growth both in quantity and quality.

Website - https://v-marc.com/

In A Rare, A Largely Bootstrapped Startup Raising ₹22 Crore By Listing on SME Platform of NSE

In what could be seen as rare incidence and at the same time a milestone achievement for Indian startup ecosystem, a Delhi-NCR based cloud computing startup E2E Networks is all set to get listed on NSE Emerge, the stock exchange’s platform for small and medium businesses (SMB).

E2E Networks Ltd is largely a bootstrapped startup that counts Blume Ventures as one of its few major investors. The startup's IPO will mark a rare public exit for India’s fledgling startup ecosystem. The listing will go live in coming weeks.

Moreover, E2E Networks going public is a milestone achieved by the Indian startup ecosystem as earlier going public is restricted to only big companies, that's too on the main exchanges -- NSE and BSE. Additionally, the listing will set an examples for other startups in India for raising capital as a different funding option, which was earlier limited to only venture capital and angel funding routes.

The IPO of E2E networks, which is selling less than a third of its shares, is valued at roughly Rs.22 crore, with an expected post-money valuation of roughly Rs.85 crore. The face value of the equity shares is Rs.10 apiece and the offer has been priced Rs.57 a share.

Post listing, Blume Ventures, along with other major investors, will continue to hold a stake in the startup, and will sell-out about a third of its stake in E2E networks.

As per the latest stock exchange data, E2E IPO received bids for 1.47 million shares against the 3.86 million shares on offer. The book, which does not have an anchor allotment, was subscribed 38% at the end of day one.

It is also to be noted that the public share marks the climactic point of a nearly decade-year-old E2E, which was valued at $500,000 about seven years ago and is one of the few examples of a low cash-burn, profitable start-up business -- a rarity at a time when the country’s most valuable startups such as Flipkart and Ola are nowhere close to profitability and are reporting hundreds of crores of losses every year.

Through the IPO, E2E is eyeing a valuation of $12.17 million (Rs 81.19 crore) through the IPO.

Journey of E2E Networks & Tarun Dua

Founded in 2008 by Tarun Dua, E2E Networks has been into the business of providing Low latency Dedicated Servers and VPS Servers in India since 2009. The company help architect customers' production site at the data-center in a cost effective manner, thus lowering risk and investment drastically, including strategies and managed services help for implementing the most suitable cloud architecture based on public, private or hybrid cloud platforms for your web facing or enterprise applications.

E2E started out in November 2009 from seed capital of $40,000 from its founder Tarun. In 2013, the company raised $56,200 from Blume Ventures and Freeman Murray, and then in 2013 it again raised seed capital of $80,405 from Blume Ventures.

In a statement to Live Mint, Karthik Reddy, managing partner at Blume Ventures, said, "Tarun was one of those founders who (built a company that) was cash-flow break-even then and is cash-flow break-even now".

“It pays to build profitable businesses, as opposed to cash-burn, high-growth businesses only in this country, as long as you have the conviction to build as a public company, which is usually a 5-10 year journey. Then it is a good avenue to tap and makes it attractive for everybody including founders, investors, employees,” he said.

Reddy also explained that why Blume Ventures decided to back E2E back in 2011, he said, “We basically thought there was a gap in the market—the market is not uniform on the hosting side. Unlike the behemoths in the data-centre space and the hosting space, who also tend to own data centres like Amazon and Microsoft Azure on one extreme, and the original data-centre businesses like NetMagic, Tarun had figured out a way to build a virtual layer on top of that— basically lease out the physical infrastructure and build a virtual layer, with just the machines being owned by him.".

“When we bet on E2E, we thought that space was open. Unfortunately and tragically for us, the VCs (venture capitalists) back then did not believe that a little start-up could threaten that kind of empire-building on both sides, sitting in the middle with a virtual play and actually build something meaningful. This is unfortunate, but those were the headwinds we faced when we went into the venture capital ecosystem,” he added.

What Other Startups Should See

First thing to learn from E2E -- A startup can break even without thinking much about "raising funds", and Secondly, startups, apart from age-old private equity funding option, can now raise funds by listing on exchange platforms made for SMEs/startups, provided they satisfy the eligibility requirements of respective exchange platforms.

As explained in our article in March, market regulator Securities and Exchange Board of India (Sebi) has allowed startups to list on the small and medium enterprises (SME) platform of the stock exchanges as an opportunity to raise capital apart from usual private equity and angel investment funding route.

SME exchange is a stock exchange dedicated for trading the shares of SMEs who, otherwise, find it difficult to get listed in the main exchanges -- NSE and BSE, in India. The concept originated from the difficulties faced by SMEs in gaining visibility or attracting sufficient trading volumes when listed along with other stocks in the main exchanges. BSE has named its SME platform as BSESME while NSE has named it as NSE Emerge.

The idea behind to get listed on SME exchanges like NSE Emerge or BSESME is to provide capital raising opportunities to small and mid level startups who cannot list on the main board for the higher compliance norms.

Eligibility for Startups To Get Listed

A startup/SME listing on the startup platform can have a maximum net-worth of Rs 10 crore to qualify for an SME listing. However startups who have raised money from private equity (PE) investors have much higher net-worth to qualify for the platform.

Companies must not exceed Rs 100 crore in annual revenue and about one-fourth of the pre-issue share compulsory held by select institutional investors for listing on NSE Emerge.

So, what other startups in India could see in E2E listing is -- a viable option to raise capital, and even investors would also have greater chance to exit early.

In E2E case, Blume Ventures will see a second major exit in less than three months, as few weeks back Blume-backed Minjar Cloud Solutions was acquired by Silicon Valley-based cloud computing firm Nutanix.

Via - Live Mint & VC Circle.

Top Image - Tarun Dua | Picture via E2E Networks @facebook