The Namo eWaste Management IPO is gaining significant traction in the market, with an impressive 18.53x oversubscription by the second day of bidding. Retail investors have led the charge, reflecting strong interest in this unique player in the electronic waste recycling industry. The IPO subscription period, which began on September 4, will close on September 6, offering shares priced between ₹80-85.

Key Highlights of Namo eWaste Management IPO:

• Subscription Status: On Day 2, the IPO saw 18.53x overall subscription. The retail investor portion was oversubscribed 26.63x, the NII (Non-Institutional Investors) segment was booked 12.30x, and the Qualified Institutional Buyers (QIB) category saw 9.00x participation.

• Shares Offered: A total of 7,42,19,200 shares were bid against the 40,06,400 shares on offer.

• GMP (Grey Market Premium): As of today, the grey market premium (GMP) for Namo eWaste Management IPO is ₹50, suggesting a strong listing ahead. This positions the potential listing price at ₹135 per share, reflecting a 58.82% increase over the upper price band of ₹85.

Company Overview

Namo eWaste Management Ltd. specializes in recycling electronic waste, handling everything from air conditioners, refrigerators, and laptops to phones, washing machines, and fans. The company offers a complete solution for E-waste management, recovering valuable materials like copper, aluminum, and iron from discarded devices. Their eco-friendly approach aims to reduce the environmental impact of electronic waste.

• Revenue Growth: From March 2023 to March 2024, the company recorded a 73% increase in revenue and a 183% rise in profit after tax (PAT), showing substantial growth in its financial performance.

• Listed Peers: Namo eWaste’s competitors include Eco Recycling Ltd. with a P/E ratio of 95.79, and Cerebra Integrated Technologies Ltd.
   

IPO Details:

• IPO Size: The Namo eWaste Management IPO is valued at ₹51.20 crore with a fresh issue of 6,024,000 equity shares.

• Use of Proceeds: The company plans to use the IPO proceeds for working capital, expanding its subsidiary, Techeco Waste Management LLP, by establishing a new factory unit in Nashik, and for general corporate purposes.

• Lead Manager: Hem Securities Limited is the lead manager for the IPO, with Maashitla Securities Private Limited acting as the registrar.
   

Strong Grey Market Premium (GMP):

The current GMP of ₹50 indicates investor confidence in the IPO, with the potential listing price expected to be ₹135 per share, a 58.82% premium over the issue price of ₹85. The consistent activity in the grey market over the past eight days reinforces the expectation of a positive listing.
 

Conclusion:

The Namo eWaste Management IPO has captured the attention of retail investors and institutions alike. With its focus on electronic waste recycling and solid financial growth, the company is poised for a promising debut in the market. The substantial oversubscription and robust grey market premium indicate that investors are optimistic about its future potential.