GEM Enviro Management Limited is coming up with an IPO worth INR 44.93 crores, consisting of a fresh issue of shares worth INR 11.23 crores and an offer to sell 33.73 crore shares. The company aims to meet the working capital requirements and general corporate purposes.
GEM Enviro IPO – Important Dates
| GEM Enviro Management Limited IPO Date | June 19, 2024 to June 21, 2024 |
| GEM Enviro Management Limited IPO Listing Date | June 26, 2024 |
| GEM Enviro Management Limited IPO Price | INR 71-75 per share |
| GEM Enviro Management Limited IPO Lot Size | 1600 Shares |
| GEM Enviro Management Limited IPO Total Issue Size | INR 44.93 crore |
| GEM Enviro Management Limited IPO Basis of Allotment | June 24, 2024 |
| GEM Enviro Management Limited IPO Initiation of Refunds | June 25, 2024 |
| GEM Enviro Management Limited IPO Credit of Shares to Demat | June 25, 2024 |
| GEM Enviro Management Limited IPO Issue Type | Book Built Issue IPO |
| GEM Enviro Management Limited IPO Listing At | BSE, NSE |
GEM Enviro Management Limited IPO – Company Profile
GEM Enviro Management Limited, established in 2013, specializes in sustainable plastic waste management. It offers EPR consultancy, industrial plastic waste recycling, recycled product sales, and ESG consulting, and it organizes awareness programs on proper plastic waste disposal and recycling.
In 2016, the Ministry of Environment, Forest and Climate Change introduced Plastic Waste Management Rules, mandating waste minimization, segregation, and responsible disposal. In 2022, comprehensive EPR guidelines for plastic packaging detailed the duties of all stakeholders.
From 2013 to 2018, GEM traded plastic waste materials and recycled merchandise. By 2023-2024, it expanded into new sustainability services, leveraging market knowledge to secure favorable terms for plastic waste trading.
GEM Enviro Management Ltd IPO Fundamental Analysis
GEM Enviro Management’s financial analysis reveals a mixed performance. Revenue increased, but the current year’s nine-month period fell short. Equity, liabilities, and assets grew. Profitability and EPS improved. RoNW declined. Higher inventory turnover suggests rapid sales or efficient inventory management.
- Revenue Trend: The revenue increased from ₹3,280.00 lakhs in March 2022 to ₹4,253.02 lakhs in March 2023. The revenue for the current year’s 9-month period ending December 2023 is INR 2,620.94 lakhs, falling short of the previous year’s annual benchmark.
- Equity and Liabilities: Both equity and total liabilities have shown a consistent increase over the periods, reflecting potential growth and expansion.
- Profitability: The profit after tax (PAT) has increased from ₹745.23 lakhs in March 2022 to ₹840.42 lakhs by December 2023. This improvement in profitability could be a source of confidence for investors.
- Earnings per Share (EPS): The diluted EPS has also increased from ₹3.53 in March 2022 to ₹3.99 by December 2023, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has declined from 54.62% to 30.48%, indicating a decrease in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations.
- Inventory Turnover Ratio: There’s an increase in the Inventory Turnover Ratio, which might suggest rapid sales or efficient inventory management.
GEM Enviro IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 December 2023 |
| Revenue (₹ in lakhs) | 3,280.00 | 4,253.02 | 2,620.94 |
| Equity (₹ in lakhs) | 1,713.57 | 2,411.51 | 3,103.32 |
| Expenses (₹ in lakhs) | 2,293.89 | 2,930.55 | 1,504.81 |
| Profit and Loss After Tax (₹ in lakhs) | 745.23 | 1,001.82 | 840.42 |
| RoNW (%) | 54.62 | 48.57 | 30.48 |
| NAV per Equity Share (₹) | 8.14 | 11.45 | 14.74 |
| Diluted EPS only (₹) | 3.53 | 4.75 | 3.99 |
| Total Assets (in lakhs) | 2,684.52 | 3,574.93 | 3,994.75 |
| Total Liabilities (in lakhs) | 970.95 | 1,163.42 | 891.43 |
| Current Ratio | 2.72 | 2.99 | 4.42 |
| Inventory Turnover Ratio | 96.30 | 406.21 | 286.29 |
GEM Enviro Management Limited IPO Peer Comparison
GEM Enviro Management Limited operates in Waste Management, offering EPR compliance, scrap management, ESG consulting, BRSR reporting, project advisory, plastic credits management, recycled product sales, and eco-awareness campaigns. It has no listed industry peers.
GEM Enviro IPO Objective
The main objective of GEM Enviro Management Limited is to meet the working capital requirement.
- To Meet Working Capital Requirements: The company intends to utilize INR 7 crores to bolster working capital, typically sourced from internal accruals. This infusion aims to support growth, seize opportunities, and enhance revenues and profitability.
- General corporate purposes: The company plans to deploy the balance of the funds towards general corporate purposes, including strategic initiatives, enhancing marketing networks, addressing exigencies, brand building, and bolstering overall operations.
GEM Enviro IPO Risks And Challenges
GEM Enviro Management Limited’s risk includes legal proceedings involving promoters, heavy dependence on trade receivables for working capital, and reliance on a limited customer base for significant revenue, posing potential adverse impacts on business stability.
- The company faces outstanding legal proceedings involving promoters and group companies. Adverse decisions in these cases could significantly impact business, operational results, and financial stability.
- Their business heavily relies on working capital, especially trade receivables. Insufficient cash flow or failure to manage working capital efficiently could adversely affect operations and financial stability. High debtor amounts pose risks.
- The company depends on a limited customer base for significant revenue. Cancellations, delays, or reduced orders from these customers could severely impact business, operational results, and financial stability.
GEM Enviro SME IPO – Industry & Market Potential
The global plastic industry, valued at $584.7 billion in 2021, is projected to reach $753.1 billion by 2026, with a CAGR of 5.2%. Escalating demand from diverse sectors, especially in Asia-Pacific, drives growth.
India’s plastic recycling market reached 5700 thousand tonnes in FY 2023 and is expected to grow steadily at a CAGR of 5.84% by FY 2030, driven by small-scale plants and NGO focus on the secondary use economy.
India’s recycled plastic waste management market holds a positive outlook driven by environmental awareness and government regulations. Increased demand for extended producer responsibility (EPR) services and eco-friendly products signals robust growth potential and sustainability in the sector.
GEM Enviro Management Limited IPO – Type of Offer
GEM Enviro Management Limited includes a fresh issue worth INR 11.23 crores and an offer to sell 33.70 crore shares by the existing shareholders.
- Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 11.23 crores. The company plans to utilize it to fund working capital requirements and general corporate purposes.
- Offer for sale: GEM Enviro Management Limited is offering to sell 33.70 crore existing shares. The following are the details of the existing shareholder, who is also the promoter selling the shares:
| Name of the promoter selling shareholder | Maximum number of offered shares for sale (in millions) |
| Mr. Sachin Sharma | 11,23,200 |
| Mrs. Sangeeta Pareekh | 9,29,600 |
| BLP Equity Research Private Limited | 13,16,800 |
| Mr. Sarthak Agarwal | 11,23,200 |
GEM Enviro IPO Offer Size
The offer size of GEM Enviro Management Limited is INR 44.93 crores, consisting of a fresh issue worth INR 11.23 crores and an offer to sell 33.70 crore shares. The company seeks funds to meet working capital requirements and general corporate purposes.
GEM Enviro SME IPO Allotment Structure
GEM Enviro Management Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 35% for Non-Institutional Investors (NII), and 15% for Retail Individual Investors (RII) according to SEBI regulations. 342,400 shares are reserved for market makers.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 35% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 15% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
● Market Maker Reservation: A portion of shares, i.e.342,400 shares, are reserved for marker makers.
How to apply for a GEM Enviro Management Limited IPO?
To apply for the GEM Enviro Management Limited IPO through Alice Blue, you would typically follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the GEM Enviro Management Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the GEM Enviro Management Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check GEM Enviro Management Limited’s IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the GEM Enviro Management Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the GEM Enviro Management Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the GEM Enviro Management Limited IPO:
● Registrar’s Website: Visit the website of Skyline Financial Services Private Limited, the registrar of the GEM Enviro Management Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● BSE and SME: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) and Small Medium Exchange (SME). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
GEM Enviro Management Limited Ltd IPO Offer Registrar
The registrar for the GEM Enviro Management Limited IPO isSkyline Financial Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
SKYLINE FINANCIAL SERVICES PRIVATE LIMITED
D-153A, 1st Floor, Okhla Industrial Area Phase-I,
New Delhi – 110020, India
Tel. No.: 011-40450193-97,
Email Id: [email protected]
Website: www.skylinerta.com
GEM Enviro Management Limited Limited IPO – FAQs
The allotment date of the GEM Enviro Management Limited IPO is June 24, 2024.
The price band of the issue is INR 193-203 per share.
The offer size of GEM Enviro Management Limited is INR 44.93 crores, consisting of a fresh issue worth INR 11.23 crores and an offer to sell 33.70 crore shares. The company seeks funds to meet working capital requirements and general corporate purposes.
The listing date of GEM Enviro Management Limited’s IPO is June 26, 2024.
