Ganesha Ecosphere to use QIP proceeds to fund future expansion plans
Ganesh Ecosphere aims to achieve revenues of ₹1,600 to ₹2,000 crore in the next financial year and maintain earnings before interest, tax, depreciation, and amortisation (EBITDA) margin of 16-18%.
Ganesha Ecosphere, a leading player in PET bottle recycling, plans to use the recently-raised funds for expansion and to have a war-chest ready to be able to capture various opportunities coming up in the recycling space.
The company completed a qualified institutional placement (QIP) issue and a preferential issue totaling around ₹500 crore.
“We are looking at increasing our recycling capacities and further entering into the bottle-to-bottle recycling capacities in north India,” said Yash Sharma, Director, Ganesha Ecosphere in an interview with CNBC-TV18.
The company is planning to increase its capacity by 14,000 tonne. This expansion will bring their total capacity to 42,000 tonne by the end of the current year.
Despite the expansion, the company assures stakeholders that its net debt will remain stable.
Ganesh Ecosphere plans to achieve revenues ranging between ₹1,600 crore to ₹2,000 crore in the next financial year.
The company also aims to maintain a healthy earnings before interest, tax, depreciation, and amortisation (EBITDA) margin within the range of 16% to 18%.
On March 1, affiliate company Ganesha Ecopet initiated its commercial activities in Warangal, Telangana.
Ganesha Ecopet also started production of recycled polyester staple fibre and launched the second production line for rPET Chips at its Warangal facility.
The current market capitalisation of the company is ₹2,306.96 crore.
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(Edited by : Shweta Mungre)
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