GEM Enviro Management Limited (GEM), established in 2013, specializes in collecting and recycling various packaging wastes, including plastic waste. Over the years, GEM has diversified into implementing Plastic Extended Producer Responsibility (EPR) Programmes to help organisations comply with PWM Rules 2016 and its amendments.
This has become GEM's largest business vertical, contributing 82.41% of revenue in 2022-2023. The collection and recycling of industrial plastic waste accounted for 17.42% of revenue, while sales and marketing of recycled products made up 0.18% of revenue for the same period.
From 2013 to 2018, GEM primarily traded plastic waste material and merchandise made from recycled waste. Committed to sustainable plastic waste management, GEM offers comprehensive services, including plastic waste collection, sorting, recycling, repurposing, waste trading, and environmental consultancy.
The company leverages its promoters' field experience and market knowledge to secure favourable terms and prices in plastic waste trading transactions.
In 2023-2024, GEM expanded into additional sustainability-related services. Currently, GEM offers EPR consultancy and fulfilment for plastic waste, collection and recycling of industrial plastic waste, sales and marketing of recycled products, and ESG consulting and Business Responsibility and Sustainability Reporting (BRSR).
The company is also dedicated to raising awareness about proper plastic waste disposal and the importance of recycling through regular awareness programs.
Industry Outlook:
- India generates 26,000 tonnes of plastic waste daily, equivalent to 26,000 small cars, with only 30% being recycled annually.
- The India Plastic Recycling market, at 5700 thousand tonnes in FY 2023, is expected to grow at a 5.84% CAGR by FY 2030.
GEM Enviro Management Limited IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- Funding our working capital requirements and
- General corporate purposes
Peer Details
There are no listed companies in India or abroad engaged in developing a similar line of product solutions to those of GEM Enviro Management Limited.
How To Check the Allotment Status of the GEM Enviro Management Limited IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app.
- Go to the Individual order details page of the IPO that you had applied for.
- Check the IPO allotment status. As such, Angel One will notify you of your IPO allotment status via push notification, email and SMS.
Contact Details of GEM Enviro Management Limited
- Registered office: Unit No.203, Plaza- P 3, Central Square, Bara Hindu Rao, Delhi 110006.
- Phone: 011-49068377
- E-mail: vijay.sharma@gemrecycling.com
IPO Financials
| Particulars | 9-Month period Ending on December 31, 2023 | Year ending on March 31, 2023 | Year ending on March 31, 2022 |
|---|---|---|---|
| Revenue from Operations (in ₹ lakh) | 2,620.94 | 4,253.02 | 3,280.00 |
| Profit After Tax (PAT) (in ₹ lakh) | 840.42 | 1,001.82 | 745.23 |
| Cash & Cash Equivalents (in ₹ lakh) | 324.93 | 356.74 | 526.13 |
| Current Ratio (x) | 4.42 | 2.99 | 2.72 |
| Net Worth (in ₹ lakh) | 3,103.32 | 2,411.51 | 1,713.57 |
| Debt to Equity Ratio(x) | 0 | 0 | 0 |
| Return on Equity (ROE) (%) | 30.48% | 48.57% | 54.62% |
| Return on Capital Employed (RoCE) (%) | 36.55% | 55.98% | 58.15% |
| Diluted Earning Per Share (EPS)-in absolute ₹ | 3.99 | 4.75 | 3.53 |
Know before investing
Strengths
6An emerging player in plastic EPR with strong brand recall.
Strong relationships with recyclers and waste aggregators in the value chain.
The huge and rapidly growing EPR market size offers growth potential.
Significant opportunities in GEM's other business areas.
High growth potential in waste tech using AI and Blockchain.
Expertise in enviro tech industry enables leveraging cutting-edge technologies.
Risks
6High working capital needs may strain financial stability and growth.
Dependency on top customers, 57.35% revenue from top 10 clients.
Reliance on few suppliers; top 10 contribute 88.63% of purchases.
Lack of ownership of key office spaces risks operational disruptions.
Promoters’ control may conflict with minority shareholder interests.
High trade receivables, 93.08% of total revenue in December 2023.
