BSE SME GEM Enviro Management jumps on debut

Shares of GEM Enviro Management were quoting at Rs 149.62 on the BSE, a premium of 99.49% compared with the issue price of Rs 75.

The scrip was listed at Rs 142.50, a premium of 90% over the initial public offer (IPO) price. The stock is currently frozen in its upper limit of 5% over its listing price.

The counter hit a high of Rs 149.62 and a low of Rs 142.50. About 14.18 lakh shares of the company changed hands at the counter.

GEM Enviro Management was subscribed 244.08 times. The issue opened for bidding on 19 June 2024 and it closed on 21 June 2024. The price band of the IPO was set between Rs 71 to Rs 75 per share.

The issue size comprised fresh issue of 14,97,600 and offer for sale (OFS) of 44,92,800 shares by existing shareholders. The promoter and promoter group shareholding diluted to 73.44% from 100% pre-offer.

The company intends to utilise the net proceeds to meet working capital requirement and general corporate purpose.

Ahead of the IPO, Gem Enviro Management on Tuesday, 18 June 2024, raised Rs 12.69 crore from anchor investors. The board allotted 16.92 lakh shares at Rs 75 per share to 8 anchor investors..

GEM Enviro Management ("GEM") established for collection and recycling packaging waste, including plastic waste. However, it diversified into implementing Plastic Extended Producer Responsibility Programmes for various organizations, becoming its largest business vertical. In 2023-2024, the company has ventured into new sustainability businesses, providing services such as EPR consultancy and fulfilment for Plastic Waste, collection and recycling of industrial plastic waste, sales and marketing of recycled products, ESG consulting and BRSR (business responsibility and sustainability reporting). The company has total 51 full time employees.

The company recorded revenue from operations of Rs 26.20 crore and net profit of Rs 8.40 crore for the period as on 31 December 2023.

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