GEM Enviro Management Ltd, a company that handles waste management, is preparing to go public with an initial public offering (IPO) worth ₹44.93 crore. This SME IPO will be available for subscription from June 19 to June 21, with the final share allotment expected on June 24.
Price Range and Offering
The price range for the GEM Enviro IPO is set between ₹71 and ₹75 per share. At the highest price point, the IPO is valued at ₹44.93 crore. This offering includes a fresh issue of 14.98 lakh equity shares amounting to ₹11.23 crore and an offer for sale (OFS) of 44.93 lakh shares totaling ₹33.70 crore.
Investors can buy the shares in lots of 1,600, with the minimum investment for retail investors being ₹120,000. GEM Enviro shares are scheduled to be listed on the BSE SME on June 26.
The funds raised from the IPO will be used for the company’s working capital needs and general corporate purposes.
The main promoters of GEM Enviro Management Ltd are Sachin Sharma, Sangeeta Pareekh, Dinesh Pareekh, Sarthak Agarwal, and BLP Equity Research Private Limited. After the IPO, the promoters’ shareholding will decrease from 100% to 73.44%.
GEM Enviro Management specializes in recycling packaging waste, including plastic waste.
Share India Capital Services Pvt Ltd and Fintellectual Corporate Advisors Pvt Ltd are managing the IPO, with Skyline Financial Services Pvt Ltd as the registrar.
Financial Performance
For the financial year 2023, GEM Enviro reported a net profit of ₹10.01 crore and revenue of ₹42.80 crore, compared to a net profit of ₹7.45 crore and revenue of ₹32.91 crore in FY22. For the nine months ending December 2023, the company posted a net profit of ₹8.40 crore and revenue of ₹26.39 crore.
Currently, GEM Enviro’s shares are trading at a premium of ₹25 in the grey market, indicating a price of ₹100 per share, which is 33.33% higher than the top issue price of ₹75.
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