Gem Enviro Management IPO Subscription Status

GEM Enviro Management - IPO Subscription Status on Day-3

As of 6.58 pm on 21st June 2024, out of the 39.552 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation done), GEM Enviro Management saw bids for 10,489.84 lakh shares. This implies an overall subscription of 265.22X at a macro level at the close of Day-3 of the IPO. The granular break-up of subscriptions as of the close of Day-3 of the GEM Enviro Management IPO was as under: 

The subscriptions were led by the HNI / NII investors followed by the Retail investors and then by the QIB investors in that order. The QIB quota and the NII / HNI will typically gather most of the momentum on the last day, and that was the case in this issue also in the case of the HNI / NII bids and the QIB bids. The NII bids pick up momentum on the last day since that is when the bulk HNI funding bids, corporate bids and the large HNI bids come in. Even the institutional bids come in on the last day in the first half. Here are the details of the category-wise subscription. The overall subscription ratio calculation excludes anchor portion and also the market making portion in the IPO.

Data Source: BSE

The IPO is open up to June 21, 2024, at which point we will know the final subscription status of the IPO. As of today, the IPO is closed for subscription and the status has already been updated as of the end of Day-3 of the IPO. This is as of close of subscription.

The price band for the book building issue is set in the range of ₹71 to ₹75 per share. The issue opened for subscription on 19th June 2024 and closed for subscription on 21st June 2024. The credits to the demat account to the extent of shares allotted will happen by the close of 25th June 2024 under ISIN (INE0RUJ01013).

GEM Enviro Management - IPO Subscription Status on Day-2

As of 5.10 pm on 20th June 2024, out of the 39.552 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation done), GEM Enviro Management saw bids for 1,169.60 lakh shares. This implies an overall subscription of 29.57X at a macro level at the close of Day-2 of the IPO. The granular break-up of subscriptions as of the close of Day-2 of the GEM Enviro Management IPO was as under:

The subscriptions were led by the retail investors followed by the HNI / NII investors and then by the QIB investors in that order. The QIB quota and the NII / HNI will typically gather most of the momentum on the last day, and that would be the case in this issue also in the case of the HNI / NII bids and the QIB bids. The NII bids pick up momentum on the last day since that is when the bulk HNI funding bids, corporate bids and the large HNI bids come in. Even the institutional bids come in on the last day in the first half. Here are the details of the category-wise subscription. The overall subscription ratio calculation excludes anchor portion and also the market making portion in the IPO.

Data Source: BSE

The IPO is open up to June 21, 2024, at which point we will know the final subscription status of the IPO. As of today, the status is only updated as of the end of Day-2 of the IPO.

The price band for the book building issue is set in the range of ₹71 to ₹75 per share. The issue opened for subscription on 19th June 2024 and closes for subscription on 21st June 2024. The credits to the demat account to the extent of shares allotted will happen by the close of 25th June 2024 under ISIN (INE0RUJ01013).The price band for the book building issue is set in the range of ₹71 to ₹75 per share. The issue opened for subscription on 19th June 2024 and closes for subscription on 21st June 2024. The credits to the demat account to the extent of shares allotted will happen by the close of 25th June 2024 under ISIN (INE0RUJ01013).

GEM Enviro Management - IPO subscription Status on Day-1

As of 5.10 pm on 19th June 2024, out of the 39.552 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation done), GEM Enviro Management saw bids for 392.32 lakh shares. This implies an overall subscription of 9.92X at a macro level at the close of Day-1 of the IPO. The granular break-up of subscriptions as of the close of Day-1 of the IPO of GEM Enviro Management IPO was as under:

The subscriptions were led by the retail investors followed by the HNI / NII investors and then by the QIB investors in that order. The QIB quota and the NII / HNI will typically gather most of the momentum on the last day, and that would be the case in this issue also in the case of the HNI / NII bids and the QIB bids. The NII bids pick up momentum on the last day since that is when the bulk HNI funding bids, corporate bids and the large HNI bids come in. Even the institutional bids come in on the last day in the first half. Here are the details of the category-wise subscription. The overall subscription ratio calculation excludes anchor portion and also the market making portion in the IPO.

Data Source: BSE

The IPO is open up to June 21, 2024, at which point we will know the final subscription status of the IPO. As of today, the status is only updated as of the end of Day-1 of the IPO. The QIB and the HNI / NII categories see the best momentum coming only on the last and final day of the IPO, while the retail investors predominate on the first two days of the IPO. The market maker portion and anchor quota are excluded for the purpose of calculating the number of times subscription to get a realistic picture of the IPO subscription story.

GEM Enviro Management IPO – Share Allocation Across Categories

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.

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.

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.

Next Steps in the GEM Enviro Management IPO process

The issue opened for subscription on 19th June 2024 and closes for subscription on 21st June 2024 (both days inclusive). 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 expected to also happen on 25th June 2024 and the stock will list on 26th June 2024 on the BSE SME IPO segment. The credits to the demat account to the extent of shares allotted will happen by the close of 25th June 2024 under ISIN (INE0RUJ01013).