GEM Enviro IPO Draws Massive Interest: Subscribed 5.86 Times on Day 1 – Check GMP and Key Details

The initial public offering (IPO) of GEM Enviro Management has seen strong interest from investors on its opening day, June 19, 2024. By 14:45 on the first day, the IPO was subscribed 5.86 times, with investors bidding for 2.31 crore shares compared to the 39.55 lakh shares available.

Key Subscription Details

• Retail Investors: Subscribed 7.7 times.
• Non-Institutional Investors: Subscribed 4.69 times.
• Qualified Institutional Buyers (QIB): Subscribed 3.51 times.

The SME IPO, valued at ₹44.93 crore, is open for subscription from June 19 to June 21. The price range is set between ₹71 and ₹75 per share.

IPO Structure

The IPO includes:

• A fresh issue of 14.98 lakh shares worth ₹11.23 crore.
• An offer for sale of 44.93 lakh shares worth ₹33.70 crore.

Use of Funds

GEM Enviro plans to use the funds to support working capital needs and for general corporate purposes.

Promoter and Shareholding

The promoters of GEM Enviro Management include Sachin Sharma, Sangeeta Pareekh, Dinesh Pareekh, Sarthak Agarwal, and BLP Equity Research Private Limited. Their combined shareholding will decrease from 100% to 73.44% after the IPO.

Investment and Application Details

• Minimum Lot Size: 1,600 shares.
• Minimum Investment: ₹1,20,000 for retail investors.

Share India Capital Services Private Limited and Fintellectual Corporate Advisors Private Limited are managing the IPO, while Skyline Financial Services Private Ltd is the registrar. Share India Securities is the market maker.

Allotment and Listing Dates

• Allotment Date: Expected on Monday, June 24, 2024.
• Listing Date: Expected on Wednesday, June 26, 2024, on BSE SME.

Company Background

GEM Enviro Management focuses on recycling various types of packaging waste, including plastic. For FY23, the company reported a net profit of ₹10.01 crore on a revenue of ₹42.80 crore, up from ₹7.45 crore net profit and ₹32.91 crore revenue 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.

Grey Market Premium (GMP)

As of today, the GMP for GEM Enviro IPO is ₹71 per share, suggesting that shares might list at ₹146, a 94.67% premium over the issue price of ₹75 per share. The GMP has been steadily rising, up from ₹62 on June 18.