New Delhi, Jun 26 (KNN) GEM Enviro Management made a strong debut on the Bombay Stock Exchange (BSE) SME Platform today, with its shares opening at Rs 142.50, a 90 per cent premium over the initial public offer (IPO) price of Rs 75.

The stock continued its upward trajectory, reaching Rs 149.62, representing a 99.49 per cent increase from the issue price.

Trading was halted as the stock hit its upper circuit limit of 5 per cent above the listing price.

The company saw significant investor interest, with approximately 14.18 lakh shares changing hands during the session.

The IPO, which ran from June 19 to June 21, 2024, was heavily oversubscribed at 244.08 times.

The offering comprised a fresh issue of 14,97,600 shares and an offer for sale (OFS) of 44,92,800 shares by existing shareholders. The price band was set between Rs 71 to Rs 75 per share.

Prior to the public offering, GEM Enviro Management raised Rs 12.69 crore from anchor investors on June 18, 2024, allocating 16.92 lakh shares at Rs 75 each to eight institutional investors.

The company, which specialises in packaging waste collection and recycling, has recently diversified into implementing Plastic Extended Producer Responsibility Programmes.

It has also expanded into new sustainability services, including EPR consultancy, industrial plastic waste recycling, and ESG consulting.

As of December 31, 2023, GEM Enviro Management reported revenue from operations of Rs 26.20 crore and a net profit of Rs 8.40 crore.

The company plans to use the IPO proceeds for working capital requirements and general corporate purposes.

Following the IPO, the promoter and promoter group shareholding in the company has decreased from 100 per cent to 73.44 per cent.

(KNN Bureau)