Nikita Greentech Recycling Ltd IPO

The IPO opens on 27 May 2025 & closes on 29 May 2025.

Nikita Papers Limited was originally incorporated as a Private Limited Company with the name 'Nikita Papers Private Limited' pursuant to a Certificate of Incorporation on August 18, 1989 issued by the RoC Thereafter, it was subsequently converted into a Public Limited Company and upon the conversion, the name of the Company finally changed to Nikita Papers Limited' vide certified by the RoC dated June 12, 2003. Nikita Papers Ltd. is a Nikita Group company engaged in manufacturing of Kraft Paper since 1992 to cater to the Specialty Paper Market in India. In 1991, a manufacturing Unit in the name of Nikita Papers Ltd. was established at Industrial Estate, Panipat Road, Shamli (U.P) to manufacture Kraft paper with 30 Tons per Day Capacity. Since then, the Company has undergone through many expansion & modernizations time to time to maintain its standard and the paper quality of the company in the paper market. At present the installed capacity of the company is approx. 133000 M.T. per annum. The Company changed to recycle pulping from agro pulping in 2013. It installed 2.5 MW Thermal Power Plant in 2016; then after, installed a cutting-edge paper machine with a capacity of 85,000 MT in 2021 and further installed 1.5 MW Thermal Power Plant in 2021-22. The Company transformed 50% of fuel usage from biomass to RDF (Refuse-Derived Fuel) in 2023. Company launched the IPO by issuing 64,94,400 fresh equity shares of face value Rs 10 each, by raising Rs 67.54 crores in May, 2025.

Nikita Greentech Recycling Ltd IPO will close on 29 May 2025.

<ul><li>Experienced Promoters and Senior Management with extensive domain knowledge.</li><li>Quality assurance and control.</li><li>Expansion into Fluting Media Multi-liner Kraft Paper.</li><li>Market Potential.</li><li>Investment in latest technology and maintain our edge in the market.</li></ul>

<table class="table"> <thead> <tr> <th>S.No</th> <th>Promoters Name</th> <th>Pre Issue Shares</th> <th>Pre Issue Percentage</th> <th>Post Issue Shares</th> <th>Post Issue Percentage</th> </tr> </thead> <tbody> <tr> <td>1</td> <td>Ashok Kumar Bansal</td> <td>2543853</td> <td>13.99</td> <td>2543853</td> <td>10.31</td> </tr> <tr> <td>2</td> <td>Sudhir Kumar Bansal</td> <td>1775930</td> <td>9.77</td> <td>1775930</td> <td>7.2</td> </tr> <tr> <td>3</td> <td>Ayush Bansal</td> <td>298490</td> <td>1.64</td> <td>298490</td> <td>1.21</td> </tr> <tr> <td>4</td> <td>Abhinav Bansal</td> <td>802940</td> <td>4.42</td> <td>802940</td> <td>3.26</td> </tr> <tr> <td>5</td> <td>Anuj Bansal</td> <td>1004720</td> <td>5.53</td> <td>1004720</td> <td>4.07</td> </tr> <tr> <td>6</td> <td>Ashok Kumar Bansal & Sons HUF</td> <td>294500</td> <td>1.62</td> <td>294500</td> <td>1.19</td> </tr> <tr> <td>7</td> <td>Naresh Chand Bansal & Sons HUF</td> <td>305387</td> <td>1.68</td> <td>305387</td> <td>1.24</td> </tr> <tr> <td>8</td> <td>Sudhir Kumar Bansal & Sons HUF</td> <td>165490</td> <td>0.91</td> <td>165490</td> <td>0.67</td> </tr> <tr> <td>9</td> <td>Ayush Bansal & Sons HUF</td> <td>243770</td> <td>1.34</td> <td>243770</td> <td>0.99</td> </tr> <tr> <td>10</td> <td>Anuj Bansal & Sons HUF</td> <td>63650</td> <td>0.35</td> <td>63650</td> <td>0.26</td> </tr> <tr> <td>11</td> <td>Sandhya Bansal</td> <td>947150</td> <td>5.21</td> <td>947150</td> <td>3.84</td> </tr> <tr> <td>12</td> <td>Abhinav Bansal & Sons HUF</td> <td>125210</td> <td>0.69</td> <td>125210</td> <td>0.51</td> </tr> <tr> <td>13</td> <td>Mithllesh Bansal</td> <td>1753320</td> <td>9.64</td> <td>1753320</td> <td>7.11</td> </tr> <tr> <td>14</td> <td>Rachit Bansal</td> <td>911050</td> <td>5.01</td> <td>911050</td> <td>3.69</td> </tr> <tr> <td>15</td> <td>Alliance Farms & Agriculture L</td> <td>861650</td> <td>4.74</td> <td>861650</td> <td>3.49</td> </tr> <tr> <td>16</td> <td>Neera Bansal</td> <td>753350</td> <td>4.14</td> <td>753350</td> <td>3.05</td> </tr> <tr> <td>17</td> <td>Antara Rakesh</td> <td>583490</td> <td>3.21</td> <td>583490</td> <td>2.37</td> </tr> <tr> <td>18</td> <td>Suruchi Mittal</td> <td>294500</td> <td>1.62</td> <td>294500</td> <td>1.19</td> </tr> <tr> <td>19</td> <td>Riha Bansal</td> <td>166250</td> <td>0.92</td> <td>166250</td> <td>0.67</td> </tr> <tr> <td>20</td> <td>Ravindra Manchanda</td> <td>123500</td> <td>0.68</td> <td>123500</td> <td>0.5</td> </tr> <tr> <td>21</td> <td>Kanwal Manchanda</td> <td>95000</td> <td>0.52</td> <td>95000</td> <td>0.39</td> </tr> <tr> <td>22</td> <td>Sudhir Agarwal</td> <td>88350</td> <td>0.49</td> <td>88350</td> <td>0.36</td> </tr> <tr> <td>23</td> <td>Sangita Gupta</td> <td>88350</td> <td>0.49</td> <td>88350</td> <td>0.36</td> </tr> <tr> <td>24</td> <td>Nikita Agarwal</td> <td>76000</td> <td>0.42</td> <td>76000</td> <td>0.31</td> </tr> <tr> <td>25</td> <td>Pooja Manchanda</td> <td>76000</td> <td>0.42</td> <td>76000</td> <td>0.31</td> </tr> <tr> <td>26</td> <td>Shri Ashok Kumar Mittal</td> <td>66500</td> <td>0.37</td> <td>66500</td> <td>0.27</td> </tr> <tr> <td>27</td> <td>Aditi Bansal</td> <td>47500</td> <td>0.26</td> <td>47500</td> <td>0.19</td> </tr> <tr> <td>28</td> <td>Sunil Agarwal</td> <td>28500</td> <td>0.16</td> <td>28500</td> <td>0.12</td> </tr> <tr> <td>29</td> <td>Suresh Mittal</td> <td>23750</td> <td>0.13</td> <td>23750</td> <td>0.09</td> </tr> </tbody> </table>

<ul><li>Raw material cost fluctuations impact the profitability and stability of businesses across various industries, necessitating adaptive strategies for procurement and pricing.</li><li>The Company is dependent on few numbers of customers for sales. Loss of any of this large customer may affect its revenues and profitability.</li><li>The Company has negative cash flows from its operating activities, investing activities as well as financing activities in the current and past years, details of which are given below. Sustained negative cash flow could impact its growth and business.</li><li>Its production operations are geographically located in one area i.e., Shamli, Uttar Pradesh and any localized social unrest, natural calamities, etc. could have material adverse effect on business and financial operations.</li><li>The company is primarily dependent upon few key suppliers for procurement of raw materials. Any disruption in the supply of these raw materials or fluctuations in their prices could have a material adverse effect on its business operations and financial conditions.</li><li>Its may not be able to sustain historical growth in the company revenue from operations and profit for year in future periods, which could have an adverse impact on its financial condition and results of operation.</li><li>The Company has file certain forms with delayed fees and Company cannot assure that no proceedings or regulatory actions will be initiated against it in relation to the non-filing and delayed filing.</li><li>The Company was in non-compliance with certain provisions of the Companies Act 2013, which though have been made good by it, however the Company cannot assure that no proceedings or regulatory actions will be initiated against it in relation to those non-compliances.</li><li>The company requires a number of approvals, licenses including recurring licences, registration and permits for its business and failures to obtain or renew them in a timely manner may adversely affect its operations. In some cases, the company may be operating without all the required permissions, risking civil and criminal sanctions.</li><li>Any disruption to the steady and regular supply of workforce for its operations, including due to strikes, work stoppages or increased wage demands by its workforce or any other kind of disputes with the company workforce or its inability to control the composition and cost of its workforce could adversely affect its business, cash flows and results of operations.</li><li>The present production capacity installed at its manufacturing unit is not fully utilized.</li><li>The geographical concentration of its customer base may restrict the company operations and adversely affect its business, results of operations and financial conditions in the future.</li><li>Certain of its corporate filings and records are not traceable, while certain corporate records have errors. The company cannot assure that regulatory proceedings or actions will not be initiated against it in the future and the company will not be subject to any penalty imposed by the competent regulatory authority in this regard.</li><li>Failures to effectively manage labour or failures to ensure availability of sufficient labour could affect the business operations of the Company.</li><li>The Company has negative cash flows from its operating activities, investing activities as well as financing activities in the current and past years, details of which are given below. Sustained negative cash flow could impact its growth and business.</li><li>Certain Agreements, deeds or licenses may be in the previous name of the company.</li><li>If the company is unable to establish and maintain an effective system of internal controls and compliances, its business and reputation could be adversely affected.</li><li>The Company has entered into certain related party transactions and may continue to do so in the future.</li><li>Its Logo is not registered. In case of no registration the company's brand building efforts may be hampered which might lead to an adverse effect to its business.</li><li>The company does not own the registered office. Any dispute in relation to use of the premises would have a material adverse effect on its business and results of operations.</li><li>The shortage or non-availability of power and fuel facilities may adversely affect its manufacturing process and have an adverse impact on the company's results of operations and financial condition.</li><li>There is no monitoring agency appointed by the Company and the deployment of funds are at the discretion of its Management and the company Board of Directors, though it shall be monitored by its Audit Committee.</li><li>The company has incurred substantial indebtedness which exposes it to various risks which may have an adverse effect on its business and results of operations.</li><li>Certain of its corporate filings and records are not traceable, while certain corporate records have errors. The company cannot assure that regulatory proceedings or actions will not be initiated against it in the future and the company will not be subject to any penalty imposed by the competent regulatory authority in this regard.</li><li>Its Promoters, members of Promoter Group and director have mortgaged their properties and provided personal guarantees to certain loan facilities availed by it, which if revoked may requires alternative guarantees, repayment of amounts due or termination of the facilities.</li><li>The Company, Directors and Promoters are not involved but may in the future, be involved in certain legal proceedings, which, if determined adversely, may adversely affect its business and financial condition.</li><li>The company is subject to risks associated with market expansion into new geographic regions.</li><li>The Company has not obtained registration under ESI Act, 1948.</li><li>Its insurance policies does not cover all risks, specifically risks like product defect/liability risk, loss of profits and terrorism. In the event of the occurrence of such events, its insurance coverage may not adequately protect the company against possible risk of loss.</li><li>The company's success depends largely on its senior management and other key personnel and the company ability to attract and retain them.</li><li>The Company is dependent on third party transportation providers for the delivery of its goods and any disruption in their operations or a decrease in the quality of their services could affect the Company's reputation and results of operations.</li><li>Its Promoters, certain of the company Directors and Key Managerial Personnel may have interests other than reimbursement of expenses incurred and normal remuneration or benefits.</li><li>The company is subject to quality requirements and strict technical specifications by its customers. The company failures to comply with the quality standards and technical specifications prescribed by such customers may lead to loss of business from such customers and could negatively impact its reputation, which would have an adverse impact on the company's business prospects and results of operations.</li><li>Its ability to pay dividends in the future will depends upon the company's future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in its financing arrangements.</li><li>Obsolescence, destruction, theft, breakdowns of its major plants or machineries or failures to repair or maintain the same may affect its business, cash flows, financial condition and results of operations.</li><li>Certain information contained in this Draft Red Herring Prospectus is based on management estimates and the company cannot assure you of the completeness or accuracy of the data.</li><li>The company cannot assure you that its equity shares will be listed on the NSE Emerge in a timely manner or at all, which may restrict your ability to dispose of the equity shares.</li><li>The company may not be successful in implementing its business strategies.</li><li>The company could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect its financial condition, results of operations and reputation.</li><li>Changes in future technology(ies) may affect its business by making the company manufacturing facilities or equipment less competitive or requiring it to make substantial capital investments.</li><li>The Issue price of its Equity Shares may not be indicative of the market price of the company Equity Shares after the Issue and the market price of its Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.</li><li>Any variation in the utilization of the Net Proceeds as disclosed in this Draft Red Herring Prospectus shall be subject to certain compliance requirements, including prior approval of the shareholders of the Company.</li><li>The company has not identified any alternate source of raising the funds required for the object of the Issue and the deployment of funds is entirely at its discretion and as per the details mentioned in the section titled "Objects of the Issue".</li><li>Any future sale of the Equity Shares by its major shareholders may adversely affect the trading price of the company Equity Shares.</li><li>Industry information included in this Draft Red Herring Prospectus has been derived from industry reports commissioned by it for such purpose. There can be no assurance that such third-party statistical financial and other industry information is either complete or accurate.</li><li>Failures or disruption of IT software's may adversely affect its business, financial condition, results of operations, cash flows and prospects.</li><li>The company lenders have charge over its movable and immovable properties in respect of finance availed by the company.</li><li>Orders placed by customers may be delayed, modified, cancelled, or not fully paid for by the customers, which may have an adverse effect on its business, financial condition and results of operations.</li><li>The company's future funds requirements, in the form of fresh issue of capital or securities and/or loans taken by it, may be prejudicial to the interest of the shareholders depending upon the terms on which they are eventually raised.</li><li>Delay in making any Statutory payments viz. Tax Deducted at Source, Income Tax, Good and Service Tax, Employee Provident Fund, or any other Statutory dues which may attract any penalty or demand raised by statutory authorities in future will affect financial position of the Company.</li><li>Failures to manage its inventory could have an adverse effect on the company net sales, profitability, cash flow, and liquidity.</li><li>The Company has during the preceding one year from the date of the Draft Red Herring Prospectus allotted Equity Shares at a price which is lower than the Issue Price.</li><li>There are restrictions on daily movements in the price of the Equity Shares, which may adversely affect a shareholder's ability to sell, or the price at which it can sell, Equity Shares at a particular point in time.</li><li>Some of its Directors are unable to provide the company an authentic copy of their educational certificate.</li><li>Its production operations are geographically located in one area i.e., Shamli, Uttar Pradesh and any localized social unrest, natural calamities, etc. could have material adverse effect on business and financial operations.</li><li>The Company had filed certain Annual Returns (MGT-7) and Financial Statements (AOC-4/ AOC-4 XBRL) with delayed fees and Company cannot assure that no proceedings or regulatory actions will be initiated against it in relation to the non-filing and delayed filing.</li><li>The company is primarily dependent upon few key suppliers for procurement of raw materials. Any disruption in the supply of these raw materials or fluctuations in their prices could have a material adverse effect on its business operations and financial conditions.</li><li>Its may not be able to sustain historical growth in the company revenue from operations and profit for year in future periods, which could have an adverse impact on its financial condition and results of operation.</li><li>The Company has file certain forms with delayed fees and Company cannot assure that no proceedings or regulatory actions will be initiated against it in relation to the non-filing and delayed filing.</li><li>The company has incurred substantial indebtedness which exposes it to various risks which may have an adverse effect on its business and results of operations.</li><li>The Company was in non-compliance with certain provisions of the Companies Act 2013, which though have been made good by it, however the Company cannot assure that no proceedings or regulatory actions will be initiated against it in relation to those non-compliances.</li><li>The company requires a number of approvals, licenses including recurring licences, registration and permits for its business and failures to obtain or renew them in a timely manner may adversely affect its operations. In some cases, its may be operating without all the required permissions, risking civil and criminal sanctions.</li><li>Any disruption to the steady and regular supply of workforce for its operations, including due to strikes, work stoppages or increased wage demands by its workforce or any other kind of disputes with its workforce or the company inability to control the composition and cost of its workforce could adversely affect its business, cash flows and results of operations.</li><li>Its lenders have charge over the company movable and immovable properties in respect of finance availed by it.</li><li>The company has not yet placed orders in relation to the Capital expenditure towards setting up a Power Plant*. In the event of any delay in placing the orders, or in the event the vendors are not able to provide in a timely manner, or at all, the same may result in time and cost over-runs.</li><li>The Inventory Turnover Ratio of the company is decreasing.</li><li>Certain Agreements, deeds or licenses may be in the previous name of the company.</li><li>The Company has obtained insurance coverage which may not adequately cover all potential losses to which its may be subject to, and this may have a material adverse effect on its business, result of operations and financial conditions.</li><li>The present production capacity installed at its manufacturing unit is not fully utilized.</li><li>The geographical concentration of its customer base may restrict the company operations and adversely affect its business, results of operations and financial conditions in the future.</li><li>In the event there is any delay in the completion of the Issue, there would be a corresponding delay in the completion of the objects of this Issue which would in turn affect its revenues and results of operations.</li><li>Failures to effectively manage labour or failures to ensure availability of sufficient labour could affect the business operations of the Company.</li><li>The company faces competition in the recycling industry. Failures to compete effectively may have an adverse impact on its business, financial condition, results of operations and cash flows.</li><li>If the company is unable to establish and maintain an effective system of internal controls and compliances, its business and reputation could be adversely affected.</li><li>The Company has entered into certain related party transactions and may continue to do so in the future.</li><li>The company does not own the registered office. Any dispute in relation to use of the premises would have a material adverse effect on its business and results of operations.</li><li>The shortage or non-availability of power and fuel facilities may adversely affect its manufacturing process and have an adverse impact on its results of operations and financial condition.</li><li>The Company has not obtained registration under ESI Act, 1948, as it is not currently applicable on the company but in future the company may be required to obtained the ESI registration if ESI Act, 1948 becomes applicable on the company.</li><li>There is no monitoring agency appointed by the Company and the deployment of funds are at the discretion of its Management and the company Board of Directors, though it shall be monitored by its Audit Committee.</li><li>Its Promoters, members of Promoter Group and director have mortgaged their properties and provided personal guarantees to certain loan facilities availed by it, which if revoked may requires alternative guarantees, repayment of amounts due or termination of the facilities.</li><li>The Company, Directors and Promoters are not involved but may in the future, be involved in certain legal proceedings, which, if determined adversely, may adversely affect its business and financial condition.</li><li>The company is subject to risks associated with market expansion into new geographic regions.</li><li>The company is subject to quality requirements and strict technical specifications by its customers. The company failures to comply with the quality standards and technical specifications prescribed by such customers may lead to loss of business from such customers and could negatively impact its reputation, which would have an adverse impact on its business prospects and results of operations.</li><li>Its insurance policies do not cover all risks, specifically risks like product defect/liability risk, loss of profits and terrorism. In the event of the occurrence of such events, its insurance coverage may not adequately protect it against possible risk of loss.</li><li>Its success depends largely on the company senior management and other key personnel and its ability to attract and retain them.</li><li>The Company is dependent on third party transportation providers for the delivery of its goods and any disruption in their operations or a decrease in the quality of their services could affect the Company's reputation and results of operations.</li><li>Its Promoters, certain of the company Directors and Key Managerial Personnel may have interests other than reimbursement of expenses incurred and normal remuneration or benefits.</li><li>Its ability to pay dividends in the future will depends upon the company future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in its financing arrangements.</li><li>Obsolescence, destruction, theft, breakdowns of its major plants or machineries or failures to repair or maintain the same may affect its business, cash flows, financial condition and results of operations.</li><li>Certain information contained in this Red Herring Prospectus is based on management estimates and the company cannot assure you of the completeness or accuracy of the data.</li><li>The company cannot assure you that its equity shares will be listed on the NSE Emerge in a timely manner or at all, which may restrict your ability to dispose of the equity shares.</li><li>Its may not be successful in implementing the company business strategies.</li><li>The company could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect its financial condition, results of operations and reputation.</li><li>Changes in future technology(ies) may affect its business by making our manufacturing facilities or equipment less competitive or requiring it to make substantial capital investments.</li><li>The Issue price of our Equity Shares may not be indicative of the market price of our Equity Shares after the Issue and the market price of our Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.</li><li>Any variation in the utilization of the Net Proceeds as disclosed in this Red Herring Prospectus shall be subject to certain compliance requirements, including prior approval of the shareholders of our Company.</li><li>We have not identified any alternate source of raising the funds required for the object of the Issue and the deployment of funds is entirely at our discretion and as per the details mentioned in the section titled "Objects of the Issue".</li><li>Any future sale of the Equity Shares by our major shareholders may adversely affect the trading price of our Equity Shares.</li><li>Industry information included in this Red Herring Prospectus has been derived from industry reports commissioned by us for such purpose. There can be no assurance that such third-party statistical financial and other industry information is either complete or accurate.</li><li>Failure or disruption of IT software's may adversely affect our business, financial condition, results of operations, cash flows and prospects.</li><li>Orders placed by customers may be delayed, modified, cancelled, or not fully paid for by our customers, which may have an adverse effect on our business, financial condition and results of operations.</li><li>Our future funds requirements, in the form of fresh issue of capital or securities and/or loans taken by us, may be prejudicial to the interest of the shareholders depending upon the terms on which they are eventually raised.</li><li>Delay in making any Statutory payments viz. Tax Deducted at Source, Income Tax, Good and Service Tax, Employee Provident Fund, or any other Statutory dues which may attract any penalty or demand raised by statutory authorities in future will affect financial position of the Company.</li><li>Some of our Directors are unable to provide us an authentic copy of their educational certificate.</li><li>The directors of our company don't have the experience of the listed company and the requirements of being a listed company may strain our resources.</li><li>Due to the downturn in the paper industry, raw material prices have fallen significantly. This decline may lead to instability among suppliers, potentially affecting their reliability and quality. If the paper industry recovers, however, raw material prices could rise again, resulting in higher production costs and subsequently squeezing profit margins.</li><li>Failure to manage our inventory could have an adverse effect on our net sales, profitability, cash flow, and liquidity.</li><li>Our Company has during the preceding one year from the date of the Red Herring Prospectus allotted Equity Shares at a price which is lower than the Issue Price.</li><li>There are restrictions on daily movements in the price of the Equity Shares, which may adversely affect a shareholder's ability to sell, or the price at which it can sell, Equity Shares at a particular point in time.</li></ul>

The Issue type of Nikita Greentech Recycling Ltd is Book Building - SME.

The minimum application for shares of Nikita Greentech Recycling Ltd is 1200.

The total shares issue of Nikita Greentech Recycling Ltd is 6494400.

Initial public issue of up to 64,94,400 equity shares of face value of Rs. 10/- each of Nikita Papers Limited ("Nikita", "NPL" or the "Company" or the "Issuer") for cash at a price of Rs. 104.00/- per equity share including a share premium of Rs. 94.00/- per equity share (the "Issue Price") aggregating to Rs. 67.54 crores ("the Issue"), of which 3,26,400 equity shares of face value of Rs. 10/- each for cash at a price of Rs. 104.00/- per equity share including a share premium of Rs. 94.00/- per equity share aggregating to Rs. 3.39 crores will be reserved for subscription by market maker to the issue (the "Market Maker Reservation Portion"). The issue less the market maker reservation portion i.e. net issue of 61,68,000 equity shares of face value of Rs. 10/- each at a price of Rs. 104.00/- per equity share including a share premium of Rs. 94.00/- per equity share aggregating to Rs. 64.15 crores is herein after referred to as the "Net Issue". The issue and the net issue will constitute 26.33% and 25.00%, respectively, of the post issue paid up equity share capital of the company.