NAMO eWaste Management Limited, a pioneer in sustainable electronic waste management in India, is set to make its mark on the stock market with its upcoming IPO. The company is offering a Book Built Issue amounting to ₹51.20 Crores, consisting entirely of a Fresh Issue of 22.29 lakh shares. The subscription period for the IPO opens on September 04, 2024, and closes on September 06, 2024. Investors can expect the allotment to be finalized on or about Monday, September 09, 2024, with the shares being listed on the NSE SME on Wednesday, September 11, 2024.

NAMO eWaste has set a share price band of ₹80 to ₹85 per equity share, with a minimum lot size of 1,600 shares. This means that retail investors are required to invest a minimum of ₹136,000, while High-Net-Worth Individuals (HNIs) must invest a minimum of ₹272,000 for 2 lots (3,200 shares). The IPO is managed by HEM SECURITIES LIMITED as the book-running lead manager, with MAASHITLA SECURITIES PRIVATE LIMITED serving as the registrar. Hem Finlease Private Limited is the sole market maker for the issue.

NAMO eWaste stands out in the industry due to its zero waste discharge technology and comprehensive e-Recycling services that are both cost-effective and environmentally friendly. The company's operations include a wide range of e-waste management solutions, making it one of the most sustainable facilities in the country.

Financial Performance

Financially, NAMO eWaste has shown significant growth, with revenue increasing from ₹4,509.00 Lakhs in FY22 to ₹10,107.62 Lakhs in FY24. The company's EBITDA also saw a rise, from ₹259.26 Lakhs in FY22 to ₹1,117.77 Lakhs in FY24. The Profit After Tax (PAT) similarly increased from ₹180.89 Lakhs in FY22 to ₹682.90 Lakhs in FY24, showcasing a steady upward trajectory in financial performance.

For the IPO, NAMO eWaste is issuing shares at a pre-issue EPS of ₹4.33 and a post-issue EPS of ₹2.98. The pre-issue P/E ratio is 19.63x, while the post-issue P/E ratio stands at 28.52x, compared to the Industry P/E ratio of 95.79x. The company's Return on Capital Employed (ROCE) for FY24 is 20.71% and Return on Equity (ROE) is 21.54%, indicating that the IPO is fairly priced and offers potential value to investors.

Objectives and Investment Potential

The proceeds from the NAMO eWaste IPO will be utilized for various purposes, including:

₹1,120.00 Lakhs to fund the capital expenditure of their subsidiary, Techeco Waste Management LLP, for setting up a new factory unit in Nashik.

₹2,200.00 Lakhs to meet working capital requirements.

Funds for general corporate purposes.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for the NAMO eWaste IPO is expected to be in the range of ₹55 to ₹60, suggesting potential listing gains of 65% to 70%. However, it is important to note that the GMP is based on unorganized trading activities and should be considered for informational purposes only.

Allotment Status

Investors can check the NAMO eWaste IPO allotment status on September 09, 2024. To do so:

Navigate to the IPO allotment status page.

Select NAMO eWaste Management Limited IPO from the dropdown list.

Enter your application number, PAN, or DP Client ID.

Submit the details to check your allotment status.

This allows investors to quickly determine their allotment status and plan their next steps accordingly.

Conclusion

Given NAMO eWaste's strong financial performance, sustainable business model, and the favorable pricing of the IPO, it presents a compelling opportunity for investors. The company's focus on sustainable e-waste management aligns with the growing demand for environmentally responsible practices in India, making it an attractive option for both listing gains and long-term investment.

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