The Namo eWaste IPO presents an exciting opportunity for investors interested in sustainable and innovative electronic waste management solutions. As a leading company in India's e-Recycling sector, Namo eWaste offers a comprehensive approach to electronic waste disposal, employing cutting-edge zero waste discharge technology. This article provides an in-depth review of the Namo eWaste IPO, including key dates, pricing, and financial insights.

IPO Details and Key Dates

The Namo eWaste IPO is scheduled to open for subscription on September 4, 2024, and will close on September 6, 2024. The company is issuing a fresh issue of 22.29 lakh shares, with a share price band set between ₹80 and ₹85. The allotment is expected to be finalized by September 9, 2024, with the shares anticipated to list on NSE SME around September 11, 2024. Retail investors need to invest a minimum of ₹136,000 for a lot size of 1,600 shares, while High-Net-Worth Individuals (HNIs) must invest a minimum of ₹272,000 for 3,200 shares.

Grey Market Premium (GMP) and Subscription Status

The Grey Market Premium (GMP) for the Namo eWaste IPO is currently expected to range between ₹55 and ₹60. It's important to note that GMP is not a reliable indicator of actual market performance and is used primarily for informational purposes. As of the latest update on September 6, 2024, the IPO has been subscribed 44.88 times, reflecting strong investor interest.

Allotment Process and Objectives

The allotment for the Namo eWaste IPO will be announced on September 9, 2024. Investors can check their allotment status by visiting the registrar's website, selecting Namo eWaste Management Limited IPO, and entering their application details.

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

Capital Expenditure: ₹1,120 lakh will be used to fund the capital expenditure for Techeco Waste Management LLP's new factory unit in Nashik.

Working Capital: ₹2,200 lakh will be utilized to meet working capital requirements.

General Corporate Purpose: Additional funds will support general corporate needs.

Financial Performance and Valuation

Namo eWaste has shown impressive financial growth over recent years. Revenue surged from ₹4,509 lakh in FY22 to ₹10,107.62 lakh in FY24. EBITDA also saw significant improvement, rising from ₹259.26 lakh in FY22 to ₹1,117.77 lakh in FY24. The PAT increased from ₹180.89 lakh in FY22 to ₹682.90 lakh in FY24. The company's pre-issue EPS stands at ₹4.33, while the post-issue EPS is ₹2.98. The pre-issue P/E ratio is 19.63x, and the post-issue P/E ratio is 28.52x compared to the industry P/E ratio of 95.79x. The ROCE for FY24 is 20.71% and ROE is 21.54%, indicating a solid financial foundation.

Investment Recommendation

With a potential Grey Market Premium of 65% - 70% and strong financial metrics, the Namo eWaste IPO is deemed fairly priced. Investors looking for listing gains or long-term investment opportunities may find this IPO attractive.

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