GEM Enviro IPO Allotment Status

About the 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 GEM Enviro IPO 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.

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.

GEM Enviro IPO allotment status is expected on June 24, 2024.

How to check GEM Enviro IPO allotment status online

The basis of allotment will be finalized on 24th June 2024 and the refunds will be initiated on 25th June 2024. In addition, the demat credits are also expected to happen on 25th June 2024 and the stock is scheduled to list on 26th June 2024 on the BSE SME segment. This is the segment, in contrast to the mainboard, where IPOs of small and medium enterprises (SMEs) are incubated. The demat credits to the demat account to the extent of allotment will happen by the close of 25th June 2024 under ISIN Number (INE0RUJ01013).

How to check the allotment status? Since this is a BSE SME IPO, there is the facility to check on the exchange website of BSE and also on the registrar website. BSE website only offers allotment status for mainboard IPOs and BSE SME IPOs. Firstly, let us look at how to check the allotment status of the IPO on the BSE website.

Checking the GEM Enviro IPO allotment status on BSE website

This is a facility available to all mainboard IPOs, irrespective of who the registrar to the issue is; and for BSE SME IPOs. You can access the allotment status on the website of BSE India as under. Visit the BSE link for the IPO allotment by clicking on the link below. 

https://www.bseindia.com/investors/appli_check.aspx 

Once you reach the page, here are the steps to follow.

• Under Issue Type – Select Equity Option
• Under Issue Name – Select GEM Enviro Management   from the drop down box
• Enter the Application Number exactly as in the acknowledgement slip
• Enter the PAN (10-digit alphanumeric) number
• Once this is done, you need to click on the Captcha to verify that you are not a robot
• Finally click on the Search Button

In the past, while checking the allotment status on the BSE website, it was necessary to input the PAN number and the application Number. However, now BSE has modified the requirements and it is sufficient if you enter any one of these parameters i.e., either the application / CAF number or the PAN number of the investor.

The allotment status will be displayed on the screen in front of you informing about the number of shares of GEM Enviro Management   allotted into your demat account. It is always advisable to save a screenshot of the allotment status output for subsequently verifying with the demat account credits on or after 25h June 2024. The stock of GEM Enviro Management  will appear in the demat account (if allotted) under ISIN Number (INE0RUJ01013).

Checking GEM Enviro IPO allotment status on Skyline Financial Services 

Visit the Skyline Financial Services Private Ltd registrar website for IPO status by clicking on the link below:

https://www.skylinerta.com/ipo.php

There are three things to remember. Firstly, you can just click on the hyper link given above and directly go to the allotment checking page. The second option, in case you are not able to click on the link, is to copy the link and paste in your web browser. Thirdly, there also a way to access this page via the home page of Skyline Financial Services Private Ltd by clicking on the Public Issues link displayed prominently on the home page. It all works the same.

The first thing you do is to select the company you want to access the allotment status for. The drop down box will only show companies where the allotment status is already finalized. In this case, you can get to see the name of GEM Enviro Management on the list around 24h June 2024 when the allotment status and the basis of allotment by the issuer is finalized. Once the company name appears on the drop down, you can click on the company name and go to next screen.

This dropdown will only show the active IPOs, so once the allotment status is finalized, you can select GEM Enviro Management from the dropdown box. The allotment status will be finalized on 24th June 2024, so in this case, you can access the details on the registrar website either late on 24th June 2024 or by middle of 25th June 2024. Once the company is selected from the dropdown box, you have 3 methods to check the allotment status for the IPO. Any of the three options can be selected from the same screen by opting for the preferred radio button.

• Firstly, you can search by Beneficiary ID of your demat account. From the page you just need to first select the DP ID / Client ID option. It does not matter whether it is an NSDL account or a CDSL account. All you need to do is to write down the combination of the DP ID and the Client ID in a single string. In the case of NSDL, enter the DP id and Client id in a single string without space. In case of CDSL, just enter the CDSL client number. Remember that the NSDL string is alphanumeric while the CDSL string is a numeric string. The details of your DP and client ID are available in your online DP statement or in the statement of account. After that you can click the Search Button in either cases.

• Secondly, you can access with Application Number / CAF (Composite Application Form) Number. Enter the Application / CAF number and then click on Search Button. Enter the application exactly it is given in the acknowledgement slip given to you post the IPO application process. After that you can click on the Search button to get the details of shares allotted to you in the IPO.

• Thirdly, you can also search by Income Tax PAN number. Once you select PAN (permanent account number) from the dropdown menu, enter your 10-digit PAN number, which is an alphanumeric code. The PAN number will be available on your PAN card or on top of your income tax returns filed. Once you enter the PAN, click on the Search Button.
The IPO status with number of shares of GEM Enviro Management allotted will be displayed on the screen. You can save a screenshot of the digital output for future reference. Once again, you can verify the demat credit by the close of 25th June 2024 or after that. Remember that the most important factor in assessing your chances of getting allotment is the quota allocation for each category and the extent of oversubscription in the IPO.

Normally, higher the oversubscription in the IPO, the lower are your chances of getting an allotment. Now, let us look at the quotas allocated to each category and also the extent of oversubscription that the IPO of GEM Enviro Management got.

Quota allocation and subscription response to the IPO of GEM Enviro Management

The table below captures the break-up of the overall share allocation to QIBs, retail investors and to the HNI / NII investors. The anchor allotment is carved out of the QIB quota and the QIB quota is reduced accordingly. The market maker allocation is the inventory that will be used by the market maker to provide liquidity in the counter post listing, to keep the bid-ask spreads low and reduce the risks of trading in the stock. The company has appointed Share India Securities Ltd as the market maker and assigned a market making inventory of 3,42,400 shares to them. The market maker will use this inventory to offer buy and sell quotes to keep the counter liquid and reduce the basis risk on the stock post listing.

Data Source: Company RHP

The issue size, net of the market maker quota, has been divided between the QIB investors, retail investors and the HNI / NII investors. On June 18, 2024, the company made an anchor allocation of 16,92,800 shares to anchor investors at a price of ₹75 per share. This included the par value of ₹5 per share and premium of ₹70 per share. The total size of the anchor allocation was ₹12.70 crore. The anchor allocation was distributed across 8 anchor investors who accounted for 100% of the anchor allocation quota.

Subscription status of GEM Enviro IPO at close

The response to the IPO of GEM Enviro Management was very strong and robust as the overall issue was subscribed 265.22X at the close of bidding on 21st June 2024 which is actually much higher than the comparable median subscription that the BSE SME IPOs have been getting in general. Out of the overall bids received, the retail segment saw 240.25 times subscription and the non-retail HNI / NII portion saw 463.29 times subscription. The QIB portion also saw healthy subscription of 160.22 times. The table below captures the overall allocation of shares with the oversubscription details as of the close of the IPO on 21st June 2024.

Data Source: BSE

What do we read from the above data? Clearly, the oversubscription to the IPO is very strong so the chances of getting allotment in the IPO is relatively lower for the investors in the IPO. Investors need to factor this oversubscription into their calculations since the probability of getting allotment is inversely proportional to the subscription levels. However, it is best to wait till 24th June 2024 when the basis of allotment will be finalized for the IPO of GEM Enviro Management. Post that, the status of allotment can be checked online based on the methodology explained above. After all, IPO allocations to retail are still done on the principle of getting as many allottees as possible.