GEM Enviro IPO: 82% Listing Gain for Waste Plastic Recycling Leader?
Waste management firm GEM Enviro seeks Rs 44.93 crore IPO to fund growth. Target listing on June 26th with potential 82% gain for early investors. Focuses on recycling industrial plastic waste.
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GEM Enviro IPO for funds
GEM Enviro’s upcoming initial public offering (IPO) is scheduled to commence subscription on June 19, 2024. The IPO, structured as a book-built issue, aims to raise Rs 44.93 crore. This includes Rs 11.23 crore from a fresh issue of 1.49 million shares and approximately Rs 33.70 crore from the sale of 4.49 million existing shares.
The funds raised through the IPO will be utilized to support working capital needs and for general corporate purposes.
GEM Enviro IPO details and financials
– The subscription period for GEM Enviro IPO starts on June 19, 2024, and ends on June 21, 2024. Allotment of shares is anticipated by June 24, 2024, with the IPO expected to list on the BSE SME on June 26, 2024.
– The price band for the IPO is set between Rs 71 to Rs 75 per share. The minimum lot size for retail investors is 1600 shares, requiring a minimum investment of Rs 120,000. High Net Worth Individuals (HNIs) can apply for a minimum of 2 lots (3,200 shares), amounting to Rs 240,000.
– As per Chittorgarh IPO, the grey market premium (GMP) for GEM Enviro is Rs 62. With an IPO price band of Rs 75, this suggests an estimated listing price of Rs 137 per share, projecting an expected listing gain of 82.67% per share.
– In FY23, GEM Enviro reported a 30.05% increase in revenue to Rs 42.8 crore and a 34.43% growth in profit after tax (PAT) to Rs 10 crore.
– The allocation of shares for the IPO includes up to 50% for Qualified Institutional Buyers (QIBs), at least 35% for retail investors, and a minimum of 15% for Non-Institutional Investors (NIIs).
– Share India Capital Services Private Limited and Fintellectual Corporate Advisors Private Limited are the book running lead managers for the GEM Enviro IPO. Skyline Financial Services Private Ltd will serve as the registrar, and Share India Securities is the market maker.
GEM Enviro – Waste plastic recycling
GEM Enviro, founded in February 2013, specializes in waste management, particularly in recycling various types of packaging waste, with a focus on industrial plastic waste. The company collects and processes this waste for recycling purposes and markets recycled products.
After its initial public offering (IPO), GEM Enviro is expected to achieve earnings per share (EPS) of Rs 4.97 and a price-to-earnings (P/E) multiple of 15.09 times.
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