Namo eWaste Management IPO Sees Massive 10.95x Subscription on Day 1; Retail Investors Dominate! Check GMP and Latest Updates

The IPO for Namo eWaste Management opened for subscription on Wednesday, September 4, and will close on Friday, September 6. The shares are priced between ₹80 and ₹85 each, with a face value of ₹10. Investors can bid for a minimum of 1600 shares.

Namo eWaste Management specialises in recycling electrical and electronic equipment, including items like air conditioners, refrigerators, laptops, phones, and washing machines. The company is dedicated to recovering valuable materials like copper, aluminium, and iron from these devices, helping to manage large amounts of electronic waste.

According to the company’s red herring prospectus (RHP), its peers include Eco Recycling Ltd, with a P/E ratio of 95.79, and Cerebra Integrated Technologies Ltd.

From March 31, 2023, to March 31, 2024, Namo eWaste Management Ltd saw its profit after tax (PAT) increase by 183% and its revenue grow by 73%.

IPO Subscription Status

On the first day of its IPO, Namo eWaste Management saw its offering subscribed 10.95 times. The retail portion was particularly popular, subscribed 14.94 times, while the Non-Institutional Investors (NII) portion was subscribed 6.82 times. Qualified Institutional Buyers (QIB) subscribed 7.05 times. By 16:26 IST, the company had received bids for 4,38,57,600 shares, against the 38,91,200 shares on offer, according to data from Chittorgarh.com.

IPO Details

The IPO aims to raise ₹51.20 crore, with a fresh issue of 6,024,000 equity shares, each with a face value of ₹10. There is no “offer for sale” component in this IPO. The funds will be used for working capital, capital expenditure for a new factory unit in Nashik (through their subsidiary Techeco Waste Management LLP), and for general corporate purposes.

Hem Securities Limited is the book-running lead manager for this IPO, and Maashitla Securities Private Limited is the registrar. Hem Finlease is acting as the market maker for the IPO.

GMP Today

The Grey Market Premium (GMP) for Namo eWaste Management IPO is currently +₹50, suggesting that shares are trading at a ₹50 premium in the grey market. Given the upper end of the IPO price band, the estimated listing price of the shares is around ₹135 each, which is 58.82% higher than the IPO price of ₹85.

A strong listing is expected, as the grey market has shown consistent interest in the past week, with GMP ranging between ₹0 and ₹50. The grey market premium reflects investors’ willingness to pay more than the issue price.