Namo eWaste is a sustainable and cost-effective electronic waste management company based in India. The company is dedicated to providing comprehensive e-recycling services, ensuring the efficient and environmentally friendly disposal of electronic waste. Their facility utilizes zero waste discharge technology, making it one of the most sustainable in the country.

The company is launching an Initial Public Offering (IPO) with a Book Built Issue totaling ₹51.20 crores. This IPO consists entirely of a Fresh Issue of 22.29 lakh shares. The subscription period for the IPO runs from September 4, 2024, to September 6, 2024. The shares are expected to be listed on the NSE SME with a tentative listing date of Wednesday, September 11, 2024.

The price band for the Namo eWaste IPO is set between ₹80 and ₹85 per share, with a minimum lot size of 1,600 shares. Retail investors are required to invest a minimum of ₹136,000, while High-Net-Worth Individuals (HNIs) need to invest in 2 lots (3,200 shares), amounting to ₹272,000.

HEM SECURITIES LIMITED is the book-running lead manager for the IPO, MAASHITLA SECURITIES PRIVATE LIMITED is the registrar, and Hem Finlease Private Limited is the sole Market Maker.

Live Subscription Status and Allotment

As of 11:31 AM on September 6, 2024, the Namo eWaste IPO live subscription status shows a high subscription rate of 44.88 times on its final day, indicating strong investor demand.

The IPO allotment date is scheduled for Monday, September 9, 2024. Investors can check their allotment status on the registrar’s website by following these steps:

Visit 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 process will help investors verify their share allocation and proceed accordingly.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for the Namo eWaste IPO is expected to be between ₹55 and ₹60, indicating potential listing gains of 65% to 70%. GMP reflects speculative trading and is based on unofficial market activities, so it should be considered for informational purposes only. The final listing price will be determined by market conditions and investor interest.

Financial Performance

Namo eWaste has demonstrated impressive financial growth. The company's revenue increased significantly from ₹4,509 lakhs in FY22 to ₹5,856.07 lakhs in FY23, and further to ₹10,107.62 lakhs in FY24, showcasing robust business expansion and market capture.

EBITDA also saw substantial growth, rising from ₹259.26 lakhs in FY22 to ₹386.48 lakhs in FY23, and ₹1,117.77 lakhs in FY24, reflecting enhanced operational efficiency.

The company’s Profit After Tax (PAT) improved from ₹180.89 lakhs in FY22 to ₹241.56 lakhs in FY23, and ₹682.90 lakhs in FY24, indicating strong profitability and financial health.

For the Namo eWaste IPO, the company 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 is 28.52x, compared to the industry P/E ratio of 95.79x. These metrics suggest that the IPO is fairly priced, offering good value relative to industry standards.

The company’s Return on Capital Employed (ROCE) for FY24 is 20.71%, and the Return on Equity (ROE) is 21.54%, highlighting strong returns on investments and equity.

Objectives of the IPO

The proceeds from the Fresh Issue will be utilized for the following purposes:

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

₹2,200.00 lakhs to meet working capital requirements, ensuring adequate liquidity for day-to-day operations.

For general corporate purposes, providing flexibility to support future growth and strategic initiatives.

Namo eWaste IPO Review and Recommendation

Namo eWaste is a leader in sustainable electronic waste management in India, specializing in environmentally friendly recycling solutions. The company is led by Akshay Jain, who has over 9 years of experience in the e-waste management industry and has played a key role in shaping the company's strategy.

The company's financial metrics reflect strong performance, with significant growth in revenue and profits. The IPO's pricing, combined with high ROCE and ROE, makes it an attractive investment opportunity.

Given the Grey Market Premium suggesting substantial potential listing gains and the company’s solid financial health, we recommend applying for the Namo eWaste Management Limited IPO for both listing gains and long-term investment. The company's commitment to sustainability and strong growth prospects offer a favorable investment outlook.

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