Namo eWaste Management make strong debut, shares list at 90% premium to IPO price; check details

Namo eWaste Management Limited shares listed at a premium of 90% on the NSE SME platform on Wednesday, September 11.

The stock started trading at ₹161.5 per share against the issue price of ₹85 per share, reflecting gains of 90%.

After listing, shares of Namo eWaste Management Limited rallied 5% to hit the upper circuit at limit at ₹169.55 apiece on the NSE amid heavy buying by investors.

More than 15 lakh shares of the company changed hands on the bourses. The traded value was ₹25.37 crore. The market capitalisation of the company stood at ₹387.72 crore.

The Faridabad-based company launched its initial public offering on the NSE SME platform from September 4 to September 6 to raise ₹51.2 crore from public investors.

The IPO was a fresh issue of 60.24 lakh shares. The company set the price band at ₹80 to ₹85 per share. The minimum lot size was 1,600 shares, and the minimum investment required for retail investors was ₹1,36,000.

At the close of bidding on September 6, the IPO was booked more than 225 times. Applications for more than 90.4 crore shares worth up to ₹7,684.03 crore were received against 40.06 lakh shares on offer for subscription.

The portion for retail individual investors was booked around 195 times, the Non-Institutional Buyers’ quota was booked 394 times, and the Qualified Institutional Buyers’ portion was subscribed nearly 152 times.

The company finalised the share allotment on September 9 and initiated refunds and credit of shares to demat accounts on September 10.

Namo eWaste Management Ltd offers services for the recycling of EEE (electrical and electronic equipment) products like air conditioners, refrigerators, washing machines, fans, mobile phones, laptops, and other electronic items.

It handles EEE waste and extracts all of the components of an electrical item including precious and semi-precious metals like copper, aluminium and iron. Electrical and electronic equipment comprises many complex materials like batteries, plastics, glass, and ferrous and non-ferrous metals.

Namo eWaste Management Ltd plans to set up a new facility at Nashik, Maharashtra, to expand its operations after the IPO.

The company will use the IPO proceeds of ₹11.2 crore to finance the capital expenditure of its subsidiary, Techeco Waste Management LLP, for constructing the new factory unit at Nashik. The total cost of the new unit is estimated at ₹11.63 crore, of which it has already spent ₹48 lakh on the proposed plant. The company will also infuse funds in Techeco Waste Management LLP in the form of a capital contribution, debt, or a combination of both.