What You Must Know About Namo eWaste Management IPO: Price Band ₹80 to ₹85 Per Share

Founded in 2014, Namo eWaste Management Limited is a comprehensive service provider for collecting, disposing, and recycling e-waste. The company is ISO 9001:2015, ISO 14001:2015, ISO 27001:2022 & ISO 45001:2018 certified, offering a wide range of services for recycling Electrical and Electronic Equipment (EEE) such as air conditioners, refrigerators, laptops, phones, washing machines, fans, and more.

Namo eWaste Management Limited's service portfolio includes:

1. Electronics recycling
2. Refurbishment
3. Extended producer responsibility (EPR) services

The company operates from two key facilities:

A leased factory in Faridabad, Haryana, India, with an area of 2566 square meters
A storage and dismantling unit in Palwal, Haryana, India, with an area of 16,010 square meters
As of 31st March 2024, the company employed approximately 48 people, indicating a lean and efficient operational structure.

The Objective of the Issue

Funding Capital Expenditure: A portion of the IPO proceeds will be used to fund the Capital Expenditure requirements of the company's subsidiary, Techeco Waste Management LLP, towards setting up a new factory unit at Nashik.
Meeting Working Capital Requirements: The company plans to utilize part of the funds to support its increasing working capital needs as it expands operations.
General Corporate Purpose: Funds will be allocated for various corporate activities that align with the company's strategic goals.

Highlights of Namo eWaste Management IPO

Namo eWaste Management IPO is set to launch with a book built issue of ₹51.20 crores. The issue comprises entirely of a fresh issue of 60.24 lakh shares. Here are the key details of the IPO:

• The IPO opens for subscription on 4th September 2024 and closes on 6th September 2024.
• The allotment is expected to be finalized on 9th September 2024.
• Refunds will be initiated on 10th September 2024.
• Credit of shares to Demat accounts is also expected on 10th September 2024.
• The company will tentatively list on NSE SME on 11th September 2024.
• The price band is set at ₹80 to ₹85 per share.
• The lowest lot size for the IPO application is 1600 shares.
• Retail investors need to invest a minimum of ₹136,000.
• The minimum investment for HNI is 2 lots (3,200 shares), amounting to ₹272,000.
• Hem Securities Limited is the book running lead manager for the IPO.
• Maashitla Securities Private Limited serves as the registrar.
• Hem Finlease is the market maker.

Namo eWaste Management IPO - Key Dates

The cut-off time for UPI mandate confirmation is 5:00 PM on 6th September 2024. This deadline is crucial for investors to ensure their applications are processed successfully. It's important to note that all UPI mandates will only be accepted until this cut-off time on the IPO closure day, as per exchange guidelines. Investors are advised to complete their applications well before this deadline to avoid any last-minute technical issues or delays.

Namo eWaste Management IPO Issue Details/Capital History

The Namo eWaste Management IPO is scheduled from 4th September to 6th September 2024, with a price band of ₹80 to ₹85 per share and a face value of ₹10. The lot size is 1,600 shares, and the total issue size is 6,024,000 shares, raising up to ₹51.20 crores through a fresh issue. The IPO will be listed on the NSE SME, with the shareholding increasing from 16,843,515 pre-issue to 22,867,515 post-issue. Hem Finlease is the market maker responsible for 302,400 shares within the issue.

Namo eWaste Management IPO Allocation & Minimum Investment Lot Size

The IPO shares are allocated across different investor categories as follows:

Investors can place bids for at least 1,600 shares, with additional bids required in multiples of this figure. The table below illustrates the minimum and maximum investment amounts for retail investors and high-net-worth individuals (HNI), expressed in shares and monetary values.

SWOT Analysis: Namo eWaste Management Limited

Strengths:

• Established player in the e-waste management sector with 10 years of experience
• Multiple ISO certifications ensuring quality and environmental management
• Comprehensive range of services covering collection, disposal, and recycling
• Strategic locations of facilities in key industrial areas

Weaknesses:

• Relatively small team of 48 employees, which may limit rapid scaling
• Concentration of operations in specific regions (Haryana)
• Potential dependency on a limited number of clients or industries

Opportunities:

• Growing awareness and regulations around e-waste management
• Expansion into new geographical markets across India
• Potential for technological innovation in e-waste recycling processes
• Increasing volume of e-waste due to rapid technological advancements

Threats:

• Regulatory changes affecting e-waste management practices
• Competition from both organized and unorganized sectors
• Fluctuations in prices of recycled materials
• Potential health and environmental risks associated with e-waste handling

Financial Highlights: Namo eWaste Management Limited

Below are the financial results for the Fiscal years FY24, FY23, and FY22:

The financial performance of Namo eWaste Management IPO over the fiscal years ending March 2022, 2023, and 2024 demonstrates a strong growth trajectory.

The company's total income has shown significant growth, increasing from ₹4,509.00 lakhs in FY22 to ₹10,107.62 lakhs in FY24, representing a growth of about 124% over two years. This substantial increase in income indicates the company's ability to capitalize on the growing e-waste management market.

Profit After Tax (PAT) has seen an impressive rise from ₹180.89 lakhs in FY22 to ₹682.90 lakhs in FY24, marking a growth of approximately 277%. This significant improvement in profitability suggests effective cost management and operational efficiency.

The company's net worth has also increased steadily, growing from ₹2,577.21 lakhs in FY22 to ₹3,526.17 lakhs in FY24, an increase of about 37%. This growth in net worth reflects the company's ability to generate and retain earnings.

Total borrowings have increased from ₹598.10 lakhs in FY22 to ₹1453.24 lakhs in FY24. While this represents a significant increase, it should be viewed in the context of the company's growth in total income and assets.

These financial metrics collectively paint a picture of a company in a growth phase, successfully scaling its operations and improving its profitability. The consistent growth across key financial parameters suggests that Namo eWaste Management Limited has been effective in executing its business plan and capitalizing on the growing demand for e-waste management services.