Regreen-Excel EPC India Ltd, a prominent manufacturer of ethanol plants, has recently submitted preliminary documents to the Securities and Exchange Board of India (Sebi) to initiate an initial public offering (IPO). This move is part of the company’s strategy to raise capital through the public equity markets.
The IPO is structured to include two components: a fresh issuance of equity shares valued at Rs 350 crore and an offer-for-sale (OFS) involving 1.14 crore equity shares by the company’s promoters, as outlined in the draft red herring prospectus (DRHP). The proceeds from the fresh issue are intended to address several financial needs, including the repayment of existing debt, securing funds required as margin money for obtaining bank guarantees, and covering general corporate expenses.
Regreen-Excel EPC India Ltd operates as a technology-driven engineering, procurement, and construction (EPC) firm specializing in the design, manufacture, and supply of ethanol plants. The company has developed comprehensive capabilities for establishing ethanol production facilities. Its expertise spans various feedstocks such as molasses/sugarcane syrup, grains, or a combination of these, enabling it to offer complete solutions from conceptualization through to commissioning for its clients.
Since its establishment up to July 15, 2024, Regreen-Excel has successfully completed 113 projects utilizing different feedstocks. This portfolio includes 53 projects based on molasses, 57 projects utilizing grains, and three projects employing multiple feedstocks. The company’s diverse experience underscores its ability to cater to different production needs and its versatility in the ethanol production industry.
As of mid-July 2024, the company’s order book is substantial, with 64 ongoing projects valued at Rs 3,452 crore. These projects collectively represent an ethanol production capacity exceeding 10,000 kilo litres per day (KLPD), reflecting Regreen-Excel’s significant role in the sector. The IPO is being managed by leading financial institutions, with IIFL Securities and ICICI Securities serving as the book-running lead managers.
This public offering represents a significant step for Regreen-Excel EPC India Ltd as it seeks to enhance its financial position and expand its operational capabilities. By capitalizing on the funds raised through the IPO, Regreen-Excel aims to strengthen its balance sheet, support its growth ambitions, and continue its pivotal role in the ethanol production industry.
Regreen-Excel EPC India Ltd is a technology-driven EPC firm specializing in designing, manufacturing, and supplying ethanol plants. The company offers comprehensive solutions from concept to commissioning, using various feedstocks like molasses and grains. With extensive project experience and a substantial order book, Regreen-Excel is a key player in the ethanol production sector.
