Hi-Green Carbon Ltd – Play on Renewable energy endeavoring wealth from waste

Thanks for starting the thread on this company. The name and the sector catered got me interested in this company, due to which I have started to do further research. Few of the starting pain points which I haven’t able to answer from my end are as follows,

1. RNG Finlease Private Limited [Promoter] – As per RHP,

“Our company was originally formed by Mr. Amitkumar Hasmukhrai Bhalodi, Mrs. Dakshaben Shaileshbhai Makadia (wife of Dr. Saileshkumar Vallabhdas Makadia), Mrs. Binaben Sandip Makadia and Mr. Rajendra Umedlal Mehta in year 2011. Subsequently, M/s. RNG Finlease Private Limited acquired control of our company, by way of acquisition of Equity Share of the company during year 2012 to 2017. Later on, Mr. Amitkumar Hasmukhrai Bhalodi, Dr. Shaileshkumar Vallabhdas Makadia, Mrs. Krupa Chetakumar Dethariya, Mrs. Radhika Amirkumar Bhalodi, Mrs. Shiryakumari Shaileshkumar Makadia, and Mr. Koosh Chetankumar Dethariya acquired a total of 54,00,000 Equity Shares, constituting 28.42% of preissue paid up capital of our company, from M/s. RNG Finlease Private Limited in year 2022. As on the date of this Red Herring Prospectus M/s. RNG Finlease Private Limited is holding 71.58% of pre-issue paid up capital of our company”

Now the part which is worth noticing is following,

“Directors of Rng Finlease Pvt Ltd are Amitkumar Hasmukhrai Bhalodi, Shaileshkumar Vallabhdas Makadia and Krupa Dethariya.”

So there is a exchange of shared between entities which have common stakeholders. The question remains on the need and basis of this transaction.

2. Related party transactions – Another point is related to transactions between the parent group and the listed entity.

A good amount of machinery is being bought from the parent group. The reason listed is to save costs related to logistics, etc., which makes sense. But further details are given as follows,

So a loan will be made out for the purpose of payment for this machinery, which will go to the parent group.
Questions remain regarding following points,

• Interest cost of the loan?

• Cost of machinery compared to other sources?

The above 2 points are in no way to be interpreted as mandatory red flags. Requesting fellow researchers to please add / resolve any queries/ doubts.

I will add on in case I get the answers or have further queries.

Disc. – Under study. Not invested.