The initial public offering (IPO) of GEM Enviro Management witnessed robust demand from investors. The issue was fully subscribed and exceeded expectations on its first day of bidding, June 19, 2024.
By 14:45 on the first day of bidding, GEM Enviro Management’s IPO was subscribed 5.86 times, with investors bidding for 2.31 crore shares compared to the 39.55 lakh on offer. The retail investor portion saw the highest subscription at 7.7 times, while the non-institutional investors’ quota was bid 4.69 times. The qualified institutional buyers (QIB) category was subscribed 3.51 times so far on Day 1.
The ₹44.93 crore SME IPO is open for subscription between June 19 and June 21 with a price band in the range of ₹71-75.
The issue is a combination of a fresh issue of 14.98 lakh shares aggregating to ₹11.23 crore and an offer for sale of 44.93 lakh shares aggregating to ₹33.70 crore.
The company plans to utilise the net issue proceeds to meet working capital requirements and for general corporate purposes.
Sachin Sharma, Sangeeta Pareekh, Dinesh Pareekh, Sarthak Agarwal, and BLP Equity Research Private Limited are the promoters of GEM Enviro Management Ltd. The promoter shareholding in the company will come down to 73.44 percent after the IPO from 100 percent currently.
The minimum lot size for an application is 1,600 Shares. The minimum investment required by retail investors is ₹1,20,000.
Share India Capital Services Private Limited and Fintellectual Corporate Advisors Private Limited are the book-running lead managers of the GEM Enviro IPO. At the same time, Skyline Financial Services Private Ltd is the registrar for the issue. The market maker for GEM Enviro IPO is Share India Securities.
The allotment for the GEM Enviro IPO is expected to be finalised on Monday, June 24, 2024. GEM Enviro IPO will be listed on BSE SME with a tentative listing date fixed as Wednesday, June 26, 2024.
GEM Enviro Management specialises in recycling all types of packaging waste, including plastic. It reported a net profit of ₹10.01 crore on a revenue of ₹42.80 crore for FY23, up from 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.
GEM Enviro IPO GMP today
GEM Enviro IPO GMP, or grey market premium, today, is ₹71 per share. This indicates that GEM Enviro shares are likely to list at ₹146, a premium of 94.67 percent to the issue price of ₹75 per share. The GMP has been consistently rising daily since June 16. It was ₹62 in the previous session, June 18.
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Published: 19 Jun 2024, 03:23 PM IST
