GEM Enviro Management Ltd IPO: Review, Valuation, Date & GMP

GEM Enviro Management Ltd IPO: Complete Overview

GEM Enviro Management Ltd was incorporated in February 2013, under the name and style of Ganesha Enviro Management Pvt Ltd. Later it changed its name to ‘GEM Enviro Management Ltd Management Private Limited’. It is located in Delhi, India. It is a waste management company specializing in recycling all packaging waste. It is focused on making businesses across the Globe sustainable by providing sustainable solutions to its clients.

The company is engaged in providing services like EPR i.e Extended Producer Responsibility, Fulfillment for all kinds of dry waste i.e. Plastic, E-Waste, Battery, Tyre, ESG i.e. Environment, Social and Governance, Consulting & BRSR i.e.Business Responsibility and Sustainability Reporting, and  Reporting and Project Advisory & Management for Plastic Credits. 

More than 100,000 MT of MLP (multi-layered plastic) trash and more than 1 million MT of recyclable plastic waste have been saved annually by GEM.

The company is set to offer its IPO. So whosoever is interested, can take part in the upcoming GEM Enviro Management Ltd IPO.

Now, we will see the details related to the offerings that would be made in this IPO.

 

GEM Enviro Management Ltd IPO Overview

GEM Enviro Management Ltd IPO is a Book Built Issue of 44.93 crores. The issue consists of an offer to sell 44.93 lakh shares, valued at Rs 33.70 crores, and a fresh issue of 14.98 lakh shares, valued at Rs 11.23 crores. Out of which 35% is allocated to retail investors, and 65% to other investors. The IPO is set to open its subscription on June 19, 2024, and close on June 21, 2024. GEM Enviro Management Ltd IPO will be listed on BSE and NSE with a tentative listing date fixed as Wednesday, June 26, 2024. The price of each share is Rs.71 to Rs.75.

 

 

Company Financial

GEM Enviro Management Ltd Management Private Limited’s revenue exceeded 30.05% and profit after tax (PAT) increased by 34.43% in the financial year March 31, 2022-March 31, 2023. The company has seen growth in total assets, revenue, and PAT in the period from 31 March 2022 to 31 March 2023.

• GEM Enviro Management Ltd Management Private Limited generates between INR 1 and 100 crore in revenue annually.

• The company's net value has grown by 267.51%.

• The company's EBITDA has grown by 507.67%.

• The company's overall assets have grown by 279,92%.

• The company's liabilities have dropped by -9.38%.

(Amount in Lacs)

Period	31 Dec 2023	31 Mar 2023	31 Mar 2022
Total Assets	3,994.75	3,574.93	2,684.52
Total Revenue	2,639.11	4,280.57	3,291.48
PAT	840.42	1,001.82	745.23
Net worth	3,103.32	2,411.51	1,713.57
Reserve & Surplus	2,050.68	2,380.55	1,677.57
Total Borrowings	-	-	2.00

 

 

Revenue Bifurcation

 Cash Flow from Operating Activities:

Net cash flow from operating activities increased significantly from 345.18 lacs on 31 March 2022, to 845.73 lacs on 31 March 2023.

The operating profit before performing capital changes rose substantially from 997.02 lacs on 31 March 2022, to 1327.57 lacs on 31 March 2023.

Cash generated from operations rose to 1155.38 lacs on 31 March 2023, from 579.43 lacs on 31 March 2022.

Cash Flow from Investing Activities:

Net cash involved in investing activities decreased to -40.55 lacs on 31 March 2023, from 3.7331 lacs on 31 March 2022.

Cash flows were involved in the purchase and sale of  PPE and Intangible assets, sale of non-current investments, Interest and Dividend received, etc.

Cash Flow from Financing Activities:

Net cash flow from financing activities fell from -46.80 lacs on March 31, 2022, to -305.89 lacs on March 31, 2023

Cash flow was involved in the Payments of borrowings and the issue of share capital.

 

The Objective of the Issue

The company intends to utilize the Net Proceeds towards funding its following objectives:

1. To Meet Working Capital Requirements

2. General corporate purpose.

 

 

Peers of GEM Enviro Management Ltd IPO

There is no listed industry Peer. 

 

Evaluation

The IPO issue price is Rs. 71 to Rs.75 for each share

Evaluation of P/E Ratio

The P/E Ratio of GEM Enviro Management Ltd IPO is not available.

 Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is Not Applicable.

 

IPO's Strengths

• The company has implicit processes and a labor force to learn and adapt to the EPR prerequisites of different areas rapidly. GEM Enviro Management Ltd is a rising player in plastic EPR and has areas of strength for review.
  
  

• The waste tech and environment tech industry is new and offers open doors for high development with the utilization of state-of-the-art technologies.

 

IPO’s Weaknesses

• The company is reliant upon and derives a significant piece of its income from a set number of clients. Wiping out by clients or a postponement or decrease in their orders could meaningfully affect their business, results of operations, and monetary condition.
  
  

• The waste service industry is new, and thus, there is a deficiency of prepared labor supply available in the market for hiring. Thus, the organization needs to prepare and hold its leader labor force.

 

IPO GMP Today

The Latest GMP of GEM Enviro Management Ltd IPO is Rs.72.

 

 

GEM Enviro Management Ltd IPO timetable (Tentative)

GEM Enviro Management Ltd IPO is scheduled from June 19 to June 21, 2024, with allotment on June 24, refund initiation on June 25, and listing on June 26, 2024.

Events	Date
IPO Opening Date	June 19, 2024
IPO Closing Date	June 21, 2024
IPO Allotment Date	June 24, 2024
Refund initiation	June 25, 2024
IPO Listing Date	June 26, 2024

 

GEM Enviro Management Ltd IPO Details 

GEM Enviro Management Ltd IPO with a face value of Rs.5 per share is set to start on June 19 and close on 21 June and will offer a fresh issue size of 1,497,600 shares (aggregating up to Rs.11.23 Cr) and offer for sale 4,492,800 shares (aggregating up to Rs.33.70 Cr)

IPO Opening & Closing Date	June 19, 2024 to June 21, 2024
Face value	Rs.5 per share
Issue Price	Rs. 71 to Rs. 75
Lot Size	1600 shares
Price of 1 lot	1,20,000
Issue Size	5,990,400 shares (aggregating up to Rs.44.93 Cr)
Offer for sale	4,492,800 shares (aggregating up to Rs.33.70 Cr).
Fresh issue	1,497,600 shares (aggregating up to Rs.11.23 Cr).
Listing at	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	Skyline Financial Services Private Ltd

 

GEM Enviro Management Ltd IPO Lot Details 

GEM Enviro Management Ltd IPO allows retail investors to invest in a minimum and maximum of 1 lot (1600 shares) at Rs.1,20,000 while for HNI investors, the minimum lot is 2 (3200 shares) at Rs.2,40,000.

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	1 lot
Minimum Lot Investment (HNI)	2 lot

 

GEM Enviro Management Ltd IPO Reservation

QIB share Portion	50%
Retail Investors’ Share Portion	35%
HNI shares offered	15%

 

Promoters and Management of GEM Enviro Management Ltd IPO

• Mr Sachin Sharma, 

• Mrs. Sangeeta Pareekh, 

• Mr Dinesh Pareekh, 

• Mr. Sarthak Agarwal

• BLP Equity Research Private Limited.

 

 

GEM Enviro Management Ltd IPO Lead Managers

• Share India Capital Services Private Limited 

• Fintellectual Corporate Advisors Private Limited

 

Dividend Policy

The details of dividends on Equity shares declared and paid by the company during the last three financial years in the six months ended 30, September 2023 are given below:

(Amount in Lacs)

Particulars	30 Sep, 2023	Fiscal 2023	Fiscal 2022
Interim Dividend/Equity Share	-	26.00	13.00
Interim Dividend	-	80.50	46.80
Final Dividend	-	20.0	2.0
Total Dividend	-	148.61	54.00
Mode of Payment	Banking Channel	Banking Channel	Banking Channel

 

Conclusion

Waste Management Company, GEM Enviro Management Ltd is an expert in recycling all plastic waste. Both net worth and total assets have increased for the company. Therefore, this blog would be very beneficial to you if you are considering investing in this upcoming IPO since it would provide you with accurate information about the company's success. If the information and statistics offered in this blog pique your interest, you may want to consider participating and benefiting from the advantages it will offer the market. However, before making any decisions in this regard, we suggest our potential readers to speak with their financial counselor.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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