IPO Corner: Urban Enviro Waste Management Ltd.

Urban Enviro Waste Management IPO is a SME IPO which opens on June 12, 2023, and closes on June 14, 2023 of the face value of ₹10 aggregating up to ₹11.42 Crores. The issue is priced at ₹100 per share. The minimum order quantity is 1200 Shares. The company has fixed lot size for 1,200 equity shares and each lot will cost Rs 1.2 lakh. Retail investors can bid for only a single lot, while non-retail bidders need to apply for at least two lots, consisting of 2,400 equity shares worth Rs 2.4 lakh.

• Issue Opens on: Monday, June 12, 2023
• Issue Closes on: Wednesday, June 14, 2023
• Issue Type: Fixed Price Issue IPO
• Face Value: ₹10 per equity share
• Issue Price: ₹100 per share
• Lot Size: 1200 Shares
• Total Issue Size: 1,142,400 shares (aggregating up to ₹11.42 Cr)
• Fresh Issue:  920,000 shares (aggregating up to ₹9.20 Cr)
• Offer for Sale: 222,400 shares of ₹10 (aggregating up to ₹2.22 Cr)
• Listing on: NSE SME Platform

Timeline

• Basis of Allotment: Monday, June 19, 2023
• Initiation of Refunds: Tuesday, June 20, 2023
• Credit of Shares: Wednesday, June 21, 2023
• Listing of Shares: Thursday, June 22, 2023

The IPO consists of fresh issue of 9,20,000 equity shares, aggregating to Rs 9.2 crore. Vikas Sharma, the selling shareholder, will offload 2,22,400 equity shares via offer for sale (OFS) route. The leading general waste handling and management services provider will be listed on NSE’s EMERGE platform.

The company has allocated 57,600 equity shares aggregating to Rs 57.6 lakh as Market Maker Reservation Portion. Asnani Stock Broker and Nikunj Stock Brokers are acting as the market makers for the issue. The company has reserved 50 per cent of the net offer will be reserved for retail individual investors, while remaining 50 per cent of the net offer is reserved for other investors including corporate bodies or institutions. The company intends to utilize the proceeds from the net issue for repayment of certain secured borrowings (including accrued interest and foreclosure charges, if any) in full availed by the company; Funding the working capital requirements, and general corporate purposes. The Lead Manager to the Issue is Pantomath Capital Advisors and Bigshare Services is the registrar to the issue.

The Company

Incorporated in 2011, Urban Enviro Waste Management Limited provides Waste Management Solutions & Municipal Solid Waste (MSW) Management services. The company’s services list includes solid waste collection, transportation, segregation of waste, and processing and disposal services across the Cities in Gujarat, Rajasthan, Madhya Pradesh, and Maharashtra, primarily catering to local municipalities. The company also carries on the activity of providing human resources like staff, workers, and skilled/semi-skilled labourers required by various industries and organizations.

The company caters to Indian Local Bodies along with providing its services to Residential Areas, Industries, Research Institutes, Power Stations, Government & Semi Government Hospitals, and Cantonment Boards to name a few. Urban Enviro Waste Management primarily undertakes Collection & Transport projects & MSW processing projects. It has undertaken more than 24 projects to date. Out of these 21 are ongoing in the Central and

Western states of Maharashtra, Gujarat, Rajasthan and Chhattisgarh, which comprises 18 MSW C&T projects, and 3 MSW processing projects. Its notable ongoing projects include Jaipur Nagar Nigam, Bhilai Nagar Nigam Chhattisgarh, Ankleshwar, NEERI, MIHAN India, NHDC Limited Indira Sagar Power Station to name a few.

Urban Enviro Waste Management is waste management solutions and municipal solid waste (MSW) management service provider. It caters to Indian local bodies along with providing its services to residential areas, industries, research institutes, power stations, government and semi government hospitals and cantonment boards for the last 12 years.

Management Commentary

Suresh Sharma, Promoter and Whole Time Director of Urban Enviro Waste Management said: “We intend to become a top player in our industry. Currently, our projects are mainly into Tier-II or Tier-III cities and now we are looking to expand our footprints in Tier-I and bigger cities to drive the next phase of growth of our company. We are looking to make our mark in the states of Uttar Pradesh and Madhya Pradesh.

And Kamlesh Sharma, Managing Director of Urban Enviro Waste Management said: “We specialize in collecting the garbage of the city and managing it to clean the environment and provide all-round solutions for the Sanitation problem. We have an experienced team of personnels from varied fraternities working towards making the endeavors of the company successful.”

Financials

Urbano Enviro reported a profit after tax (PAT) of Rs 1.3 crore with a revenue from operations at Rs 19.69 crore for the financial year 2021-22. Its PAT stood at Rs 1.06 crore with revenue from operations at Rs 26.29.96 crore for the period ended on December 31, 2022.