GEM Enviro Management IPO (GEM Enviro) IPO Review

 
GEM Enviro IPO Review

IPO Open Date: June 19, 2024

IPO Close Date: June 21, 2024

IPO Price: ₹71 to ₹75 per share

Lot Size: 1600 Shares

Listing: June 26, 2024

GEM Enviro is scheduled to hit the market on June 19, 2024 and close on June 21, 2024. GEM Enviro plans to raise around ₹44.93 Cr through an IPO with a sale of up to 5,990,400 equity shares of ₹5 each. The Retail offered 35%, QIB Shares Offered 50%, HNI Shares Offered 15%.

GEM Enviro Management Limited, established in February 2013, specializes in waste management, particularly in recycling packaging waste, including plastic waste. Their services cover EPR consultancy, industrial plastic waste collection and recycling, sales and marketing of recycled products, as well as ESG consulting and BRSR services. The company actively conducts awareness programs to educate the public on proper plastic waste disposal and recycling. Revenue is primarily generated through the sale of recycled products to existing business customers, highlighting the environmental benefits and cost-effectiveness of their offerings.

In the fiscal year 2023-24, GEM expanded its services to include ESG consulting and BRSR services, providing tailored solutions to clients by evaluating current ESG practices, identifying areas for enhancement, and integrating sustainability into core business operations through comprehensive ESG audits, stakeholder engagement, materiality assessments, and benchmarking. With a diverse clientele spanning industries like F&B, FMCG, Cement, Fertilizers, Packaging, and Consumer Goods, the company serves over 100 clients, including prominent names like Bengal Beverages Private Limited and Varun Beverages Limited. Currently, GEM Enviro Management employs 51 full-time staff members as of June 2024.

GEM Enviro



GEM Enviro IPO Details

GEM Enviro IPO opens on June 19, 2024, and closes on June 21, 2024. The Listing date for GEM Enviro IPO is on June 26, 2024. The price band for IPO is ₹71 to ₹75 per share and lot size of 1600 Shares.

IPO DateJune 19, 2024 to June 21, 2024
Listing DateJune 26, 2024
Price₹71 to ₹75 per share
Lot Size1600 Shares
Issue Size₹44.93 Cr
Face Value₹5 per share

GEM Enviro IPO Tentative Timetable

GEM Enviro opening date is June 19, 2024 and close date is June 21, 2024. The IPO allotment date is June 24, 2024. The refund initiation of IPO is on June 25, 2024. The credit of shares in demat account is on June 25, 2024. The listing date is on June 26, 2024.

EventDate
IPO OpeningJune 19, 2024
IPO ClosingJune 21, 2024
IPO Allotment DateJune 24, 2024
Refund InitiationJune 25, 2024
Shares Credit to DematJune 25, 2024
Lisiting DateJune 26, 2024

GEM Enviro IPO Lot Size

Lot Size of this IPO is 1600 shares. A retail-individual investor can apply for up to 1 lots (1600 shares or ₹120,000).

CategoryLotsSharesAmount
Retail(Minimum)11600₹120,000
Retail(Maximum)11600₹120,000
HNI (Minimum)23,200₹240,000

GEM Enviro IPO Promoter Holding

Pre Issue Share Holding100.00%
Post Issue Share Holding73.44%

GEM Enviro IPO Review

Gem Enviro Management Ltd. (GEML), established in 2013, specializes in the collection and recycling of various types of packaging waste, including plastic waste. Over the years, GEML has diversified its operations to include the implementation of Plastic Extended Producer Responsibility (EPR) programs, which have become the largest revenue contributor, accounting for 82.41% of revenue in 2022-2023. The company also engages in the collection and recycling of industrial plastic waste, sales and marketing of recycled products, and offers ESG consulting and Business Responsibility and Sustainability Reporting (BRSR). GEML's commitment to sustainability extends to organizing awareness programs about the proper disposal of plastic waste and the importance of recycling. The company operates an asset-light business model, enjoys a significant market share of 21-25% in the PWM segment among unlisted peers, and serves over 200 renowned industry players.

Financially, GEML has demonstrated consistent growth. The company's revenue increased from Rs. 25.61 crore in FY21 to Rs. 42.81 crore in FY23, while net profit rose from Rs. 5.83 crore to Rs. 10.02 crore during the same period. For the nine months ended December 31, 2023, GEML reported a net profit of Rs. 8.40 crore on a total revenue of Rs. 26.21 crore, indicating strong future prospects. The IPO aims to raise Rs. 44.93 crore, with Rs. 11.23 crore from fresh equity shares and Rs. 33.70 crore from an Offer for Sale. The proceeds will be used for working capital and general corporate purposes. Despite having a high debtor days figure of over 250, GEML remains confident in reducing this to 210 days and continuing its growth trajectory. The company's prudent dividend policy, along with its debt-free status and asset-light model, makes it an attractive option for investors.

The upcoming IPO, priced between Rs. 71 and Rs. 75 per share, appears fully priced based on annualized FY24 earnings. However, the company’s robust performance, strong market position, and future growth potential in the PWM segment make it a promising investment. With an average EPS of Rs. 4.01 and an average RoNW of 56.36% over the last three fiscals, GEML is well-positioned for continued success. Investors with a medium to long-term perspective may find this IPO appealing, given the company's solid financial performance, strategic market positioning, and commitment to sustainability. The dividend-paying nature of GEML further enhances its attractiveness as a stable and rewarding investment opportunity.

GEM Enviro IPO Subscription Status (Bidding Details)

Table not found

GEM Enviro IPO Broker Recommendations

  • Capital Market: To be updated soon
  • Anand Rathi: To be updated soon
  • SMC Global: To be updated soon
  • Arihant Capital: To be updated soon

GEM Enviro IPO FAQs

What is GEM Enviro IPO?

GEM Enviro is issuing 5,990,400 equity shares with a face value of ₹each, totaling up to ₹44.93 Cr. The shares are being offered at a price of ₹71 to ₹75 each, with a minimum order quantity of 1600 shares.

Skyline Financial Services Private Ltd is the registrar for the IPO, and the shares are planned to be listed on the BSE and NSE.

When GEM Enviro IPO will open?

GEM Enviro will open on June 19, 2024 for QIB, NII, and Retail Investors.

When GEM Enviro IPO will end?

GEM Enviro will end on June 21, 2024.

What is GEM Enviro IPO Size?

GEM Enviro IPO size is 44.93 Cr.

What is GEM Enviro IPO Price Band?

GEM Enviro price band is ₹71 to ₹75 per share.

What is the GEM Enviro IPO Allotment Date?

GEM Enviro allotment date is June 24, 2024.

What is the GEM Enviro IPO Listing Date?

GEM Enviro listing date is June 26, 2024. The IPO is to be listed on BSE and NSE.

How to GEM Enviro IPO through Zerodha?

To apply for the IPO “GEM Enviro” on Zerodha, log in to the Zerodha website or app, go to the Portfolio section, and click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Zerodha.

How to Apply GEM Enviro IPO through Upstox?

To apply for the IPO “GEM Enviro” on Upstox, log in to the Upstox website or app, click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Upstox.

How to check GEM Enviro IPO Allotment Status?

For GEM Enviro IPO Allotment status check you can visit this link, select the desired IPO and enter your PAN to check the allotment status.

What is GEM Enviro IPO GMP?

You can check out here: GEM Enviro IPO GMP

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About Ishika Agarwal

Ishika Agarwal is a seasoned financial writer with a strong background in the stock market and investment sector. Ishika has a passion for analyzing and interpreting complex financial data to provide valuable insights to her readers.

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