GEM Enviro IPO opens today; GMP, price band, lot details, analysis here

GEM Enviro’s initial public offering (IPO) is set to open for subscription on Wednesday, June 19, 2024. This is a book-built issue aiming to raise Rs 44.93 crore comprising a fresh issue of 1.49 million shares, amounting to Rs 11.23 crores, and an offer for sale of approximately 4.49 million shares, totaling Rs 33.70 crores.

The net proceeds of the IPO will be used to fund working capital requirements and general corporate purposes.

Here are the key details of GEM Enviro IPO

GEM Enviro IPO key dates

The GEM Enviro IPO subscription period begins today, June 19, 2024, and concludes on June 21, 2024. The allotment of shares is expected to be finalised by Monday, June 24, 2024. The IPO will be listed on BSE SME, with a tentative listing date set for Wednesday, June 26, 2024.

GEM Enviro IPO price bands, lot size

The price band for GEM Enviro IPO is set at Rs 71 to Rs 75 per share. The minimum lot size for application is 1600 shares, requiring a minimum investment of Rs 120,000 for retail investors. High Net Worth Individuals (HNIs) can apply for a minimum of 2 lots (3,200 shares), amounting to Rs 240,000.

GEM Enviro IPO GMP

According to IPO information platform Chittorgarh IPO, the latest grey market premium (GMP) for GEM Enviro is Rs 62. With a price band of Rs 75, the estimated listing price for the IPO is Rs 137, projecting an expected listing gain of 82.67 percent per share.

GEM Enviro IPO financials

In FY23, GEM Enviro recorded a 30.05 per cent increase in revenue to Rs 42.8 crore from Rs 32.9 crore in FY22. Its profit after tax (PAT) also grew by 34.43 per cent to Rs 10 crore in FY23, up from Rs 7.4 crore in FY22.

GEM Enviro IPO share allotment

The company has allocated up to 50 per cent of the shares for Qualified Institutional Buyers (QIBs), at least 35 per cent for retail buyers, and a minimum of 15 per cent for Non-Institutional Investors (NIIs).

GEM Enviro IPO lead book runners

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 act as the registrar, while Share India Securities is the market maker.

About GEM Enviro

GEM Enviro specialises in waste management, focusing on the recycling of all types of packaging waste, including plastic waste. Established in February 2013, the company collects and recycles industrial plastic waste and markets recycled products.

Following its IPO, GEM Enviro is projected to have earnings per share of Rs 4.97 and a price-to-earnings multiple of 15.09 times.