GEM Enviro Management IPO Lists at 90% Premium on BSE Platform

GEM Enviro Management IPO - Lists at 90% Premium

GEM Enviro Management had a strong listing on June 26, 2024, debuting at ₹142.50 per share, which marks a significant premium of 90.00% over the issue price of ₹75 per share in its SME IPO on the BSE. Below is the pre-open price discovery summary for GEM Enviro Management IPO on the BSE.

PRE-OPEN ORDER COLLECTION SUMMARY

Data Source: BSE

The SME IPO of GEM Enviro Management was a book building IPO with the IPO price band set between ₹71 and ₹75 per share (comprising of face value of ₹5 per share and the balance of price discovery as premium). The IPO of GEM Enviro Management showed strong subscription response at over 265X and the anchor allocation was done at the upper end of the price band at ₹75 per share. On 26th June 2024, the stock of GEM Enviro Management listed at ₹142.50 per share, a premium of 90.00% over the IPO issue price of ₹75.00 per share. For the day, being in the 5% circuit filter category, the upper circuit price has been set at ₹149.62 and the lower circuit price has been set at ₹135.38. 

As of 10.21 am, the volumes were 13.65 lakh shares while the turnover (value) was at ₹1,977 lakhs. The opening market cap of the stock stands at ₹337.40 crore with free float market cap standing at ₹64.11 crore. The stock will be traded in the MT segment of the BSE, which is on the T+1 settlement system. At 10.21 am, the stock is trading at ₹149.62, which is above the listing price of ₹142.50 per share and the stock is locked in the 5% upper circuit in the morning after a strong listing. The stock of GEM Enviro Management has a face value if ₹5 per share and the market lot comprises of 1,600 shares. The stock trades under the BSE Code (544199) and the ISIN code for demat credits will be (INE0RUJ01013).

About GEM Enviro Management IPO

The stock of GEM Enviro Management has a face value of ₹5 per share and it is a book building issue. The price band for the book building issue is set in the range of ₹71 to ₹75 per share. The final price will be discovered in this price band only. The IPO of GEM Enviro Management has a fresh issue component and also an offer for sale (OFS) component in the public issue. While the fresh issue portion is EPS dilutive and equity dilutive, OFS is just a transfer of ownership and  hence it is neither EPS dilutive nor is it equity dilutive. As part of the fresh issue portion of the IPO, GEM Enviro Management will issue a total of 14,97,600 shares (14.976 lakh shares), which at the upper band IPO price of ₹75 per share aggregates to fresh fund raising of ₹11.23 crore. The offer for sale (OFS) portion of the IPO entails the offer / sale of a total of 44,92,800 shares (44.928 lakh shares), which at the upper band IPO price of ₹75 per share aggregates to total OFS size of ₹33.70 crore.

Read more about GEM Enviro Management IPO

The offer for sale of 44.928 lakh shares will be entirely by the promoter group. Among the promoters offering shares, the break up is as under: Sachin Sharma (11.232 lakh shares), Sangeeta Parekh (9.296 lakh shares), BLP Equity Research Private Ltd (13.168 lakhs shares), and Sarthak Agarwal (11.232 lakh shares).  As a result, the overall IPO size will also comprise of the fresh issue and offer for sale of a total of 59,90,400 shares (59.904 lakh shares) which at the upper band of the IPO price at ₹75 per share will aggregate to overall IPO size of ₹44.93 crore. Like every SME IPO, this issue also has a market making portion with a market maker inventory allocation of 3,42,400 shares. Share India Securities Ltd will be the market maker to the issue. The market maker provides two-way quotes to ensure liquidity on the counter and low basis costs, post listing. 

The company has been promoted by Sachin Sharma, Sangeeta Parekh, Dinesh Parekh, Sarthak Agarwal, and BLP Equity Research Private Ltd. The promoter holding in the company currently stands at 100.00%. However, post the fresh issue of shares in the IPO, the promoter equity holding share will get diluted to 73.44%. The fresh issue funds will be used by the company towards funding the working capital gaps in the regular operations of the company. Part of the funds will also be used for general corporate purposes. Share India Capital Services Private Ltd and Fintellectual Corporate Advisors Private Ltd will be the joint lead manager to the issue, and Skyline Financial Services Private Ltd will be the registrar to the issue. The market maker for the issue is Share India Securities Ltd. The IPO of GEM Enviro Management will be listed on the SME IPO segment of the BSE.