Namo eWaste IPO Listing: Stock lists at 90% premium on NSE SME

Namo eWaste IPO Listing

Namo eWaste IPO Listing: Shares Skyrocket on Debut, Offering Near 100% Gain

Namo eWaste Management, a prominent player in the electronic waste recycling industry, made a spectacular debut on the NSE’s SME platform today.

The company’s initial public offering (IPO), which was open for subscription from September 4 to 6, has generated considerable buzz and excitement among investors.

IPO Overview

The IPO was launched with a goal of raising ₹51.20 crore and attracted a phenomenal level of interest from the investing community.

The issue was significantly oversubscribed, receiving more than 225 times the total bids, reflecting robust confidence in Namo eWaste’s future prospects.

The IPO was priced at ₹85 per share, and the shares started trading at ₹161.50 on the NSE SME platform, which represents a substantial listing gain of 90 percent.

This strong start didn’t stop there; the share price continued to climb, reaching the upper circuit limit of ₹169.55 by the end of the trading day, thus delivering nearly 100 percent profit to investors who subscribed during the IPO.

Detailed Subscription Data

The overwhelming response to the IPO can be broken down into several key segments:

• Qualified Institutional Buyers (QIBs): The segment reserved for QIBs was subscribed an astounding 151.75 times. This high level of interest from institutional investors underscores their confidence in the company’s growth trajectory and operational strength.
• Non-Institutional Investors (NIIs): The portion reserved for NIIs was subscribed 394.20 times. This remarkable figure highlights the significant demand from high-net-worth individuals and other institutional entities who see potential in the company’s business model and future prospects.
• Retail Investors: The retail investor segment was filled 195.54 times. This robust participation from individual investors indicates widespread confidence in Namo eWaste’s future performance and the overall attractiveness of the IPO.

A total of 60.24 lakh new shares, each with a face value of ₹10, were issued as part of this IPO. The capital raised will be utilized for various strategic purposes, including capital expenditure for the company’s subsidiary, Techeco Waste Management LLP, addressing working capital requirements, and other general corporate needs.

Company Profile

Namo eWaste Management, established in 2014, is a leading firm specializing in the collection and recycling of electronic waste.

The company’s operations cover a broad spectrum of e-waste, including discarded air conditioners, refrigerators, laptops, mobile phones, washing machines, and fans.

By focusing on the efficient and environmentally friendly disposal of electronic waste, Namo eWaste has positioned itself as a crucial player in the growing field of waste management and recycling.

Financial Performance and Growth

The company has demonstrated impressive financial growth over recent years. In the fiscal year 2022, Namo eWaste reported a net profit of ₹1.81 crore.

This figure increased to ₹2.42 crore in FY 2023 and further surged to ₹6.83 crore in FY 2024. This growth trajectory reflects not only an expanding business but also improved operational efficiencies and successful scaling of operations.

Revenue growth has been equally remarkable, with a compound annual growth rate (CAGR) exceeding 49 percent over the same period. In FY 2024, the company’s revenue reached ₹101.08 crore, indicating a robust expansion and solid performance in the electronic waste management sector.

Market Impact and Future Prospects

Namo eWaste’s successful IPO and the subsequent surge in share price reflect strong market confidence and investor enthusiasm.

The company’s impressive debut and substantial gains on the first trading day are indicative of the growing importance of sustainable practices and effective waste management solutions in today’s economy.

Looking ahead, Namo eWaste is well-positioned to capitalize on the increasing focus on environmental sustainability and regulatory pressures to manage electronic waste more effectively.

The funds raised through the IPO will bolster the company’s ability to expand its operations, invest in advanced recycling technologies, and enhance its overall service capabilities.

Sector Overview

The electronic waste recycling sector is gaining prominence as the global community becomes more aware of the environmental impact of electronic waste.

With the rapid advancement of technology and the proliferation of electronic devices, the volume of e-waste generated is growing at an accelerated pace.

This trend presents both challenges and opportunities for companies like Namo eWaste that are equipped to handle the complexities of electronic waste management.

Strategic Goals and Initiatives

To leverage its strong market position, Namo eWaste has outlined several strategic goals and initiatives. These include:

• Expansion of Recycling Facilities: The company plans to invest in state-of-the-art recycling facilities to improve efficiency and increase processing capacity.
• Technology Upgradation: Namo eWaste aims to adopt advanced technologies to enhance the effectiveness of its recycling processes and ensure higher recovery rates of valuable materials.
• Partnerships and Collaborations: The company is looking to form strategic partnerships with other industry players, regulatory bodies, and technology providers to strengthen its market presence and operational capabilities.
• Awareness and Education: As part of its corporate social responsibility, Namo eWaste is committed to raising awareness about the importance of e-waste recycling and promoting responsible disposal practices among consumers and businesses.

Final Remarks

Namo eWaste Management’s IPO has been a resounding success, reflecting the company’s strong market position and the increasing importance of sustainable waste management practices.

The impressive listing gains and robust subscription figures highlight investor confidence in the company’s growth prospects and operational excellence.

With a solid financial track record, a clear strategic vision, and a commitment to advancing recycling technologies, Namo eWaste is poised for continued success in the rapidly evolving electronic waste management sector.

The company’s successful entry into the public markets is a testament to its strong business fundamentals and the growing recognition of the critical role it plays in environmental sustainability.