The Namo eWaste Management Limited IPO is generating significant buzz in the investment community with its upcoming public offering. This article provides a comprehensive review of the Namo eWaste IPO, covering everything from subscription status to market insights and financial performance.

Namo eWaste IPO Overview

Namo eWaste is a sustainable and cost-effective electronic waste management company based in India. They specialize in comprehensive e-Recycling services that ensure efficient disposal of electronic waste in an environmentally friendly manner. Their facility is one of the most sustainable in the country with zero waste discharge technology. The IPO, amounting to ₹51.20 Crores, consists entirely of a Fresh Issue of 22.29 Lakh Shares.

The subscription period for the Namo eWaste IPO starts on September 4, 2024, and ends on September 6, 2024. The allotment of shares is expected to be finalized on September 9, 2024, with a tentative listing date on the NSE SME set for September 11, 2024.

IPO Pricing and Investment Details

The share price band for the Namo eWaste IPO is set between ₹80 and ₹85 per equity share. Investors will need to purchase a minimum lot of 1,600 shares, translating to an investment of ₹136,000 for retail investors. High-Net-Worth Individuals (HNIs) are required to invest in a minimum of 2 lots (3,200 shares), which amounts to ₹272,000.

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

Market Insights and Grey Market Premium

The Grey Market Premium (GMP) for the Namo eWaste IPO is expected to be in the range of ₹55 to ₹60. It’s important to note that the GMP is based on market speculation and the demand-supply dynamics of the shares in the unorganized market. No real trading takes place on this basis, and the GMP is provided for educational and informational purposes only.

Subscription Status and Allotment

As of September 5, 2024, the Namo eWaste IPO has shown a subscription rate of 30.56 times on its final day of the subscription period. This high subscription rate indicates strong investor interest. The IPO allotment is scheduled for September 9, 2024, and investors can check their allotment status by visiting the registrar’s website. Here’s how you can check your allotment status:

Go to the IPO allotment status page.

Select Namo eWaste Management Limited IPO from the dropdown menu.

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

Submit the details to view your allotment status.

Utilization of IPO Proceeds

The funds raised from the IPO will be allocated to several key objectives:

₹1,120.00 Lakhs will be used for funding the capital expenditure of their subsidiary, Techeco Waste Management LLP, for setting up a new factory unit at Nashik.

₹2,200.00 Lakhs will be used to meet working capital requirements.

General corporate purposes.

Financial Performance and Valuation

Namo eWaste has demonstrated impressive financial growth. Their revenue increased from ₹4,509.00 Lakhs in FY22 to ₹10,107.62 Lakhs in FY24. Similarly, EBITDA grew from ₹259.26 Lakhs to ₹1,117.77 Lakhs, and PAT rose from ₹180.89 Lakhs to ₹682.90 Lakhs over the same period. The IPO shares are priced with a pre-issue EPS of ₹4.33 and a post-issue EPS of ₹2.98. The pre-issue P/E ratio stands at 19.63x, and the post-issue P/E ratio is 28.52x, compared to an industry P/E ratio of 95.79x.

Given these metrics, the IPO appears to be fairly priced. The potential listing gains are estimated between 65% and 70%, based on the company's financial performance and valuation.

Recommendation: Investors are advised to consider applying for the Namo eWaste Management Limited IPO, either for potential listing gains or as a long-term investment opportunity.

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