Posted in: Legal/Finance in Uttar Pradesh | Posted: |
The Namo eWaste Management IPO is an upcoming SME IPO with a total issue size of Rs.51.20 crore by Namo eWaste Management Ltd. Founded in 2014, the company is a leading provider of e-waste collection, disposal, and recycling services in India. With a strong presence in the e-waste management industry, Namo eWaste stands among the top e-waste recycling companies in India.
India's e-waste management sector includes 569 licensed recyclers and dismantlers, with a combined processing capacity of 17,90,348 TPA. Namo eWaste offers comprehensive recycling services for a wide range of Electrical and Electronic Equipment (EEE), including air conditioners, refrigerators, computers, phones, washing machines, and more. The company holds multiple ISO certifications, ensuring high standards in quality and environmental management.
IPO Details:
Issue Size: Rs.51.20 crore (entirely a fresh issue of 60.24 lac shares).
Price Band: Rs.80 to Rs.85 per share.
IPO Dates: September 04-06, 2024.
Listing Date: September 11, 2024, on NSE and SME.
Financial Highlights:
Total Assets: Rs.6,274.74 lac (FY 2024).
Total Revenue: Rs.10,107.62 lac (FY 2024).
PAT: Rs.682.9 lac (FY 2024).
Net Worth: Rs.3,526.17 lac (FY 2024).
EBITDA: Rs.1,117.77 lac (FY 2024).
The company has shown consistent growth, with significant increases in revenue and profits over the last three fiscal years.
Investment Considerations:
P/E Ratio: The IPO is priced at a P/E ratio of 19.63x based on FY 2024 EPS of Rs.4.33, indicating potential undervaluation compared to the industry average P/E of 95.79x.
GMP: The Grey Market Premium (GMP) as of August 31, 2024, is Rs.50.
Strengths:
Leading provider of e-waste management services in India.
Extensive experience in recycling and disposal of electronic waste.
Strong financial performance and growth trajectory.
Risks:
Past negative cash flow from operating, investing, and financing activities.
Potential competition from organized and unorganized sectors.
Conclusion:
The Namo eWaste Management IPO offers a promising opportunity in the growing e-waste management sector in India. With solid financials and a strong industry presence, this IPO could be a valuable addition to your investment portfolio. However, investors should consider the company’s past cash flow challenges and competitive risks before making a decision.
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