Urban Enviro Waste Management IPO (NSE SME) Overview

The Urban Enviro Waste Management IPO (NSE SME) consists of a fresh issue of 9.2 lakh equity shares, aggregating to ₹9.2 crore and an offer for sale (OFS) of 2.22 lakh equity shares by selling shareholder Vikas Sharma. The total issue size of Urban Enviro Waste Management IPO is ₹11.42 crore with of sale of 11.42 lakh equity shares at a fixed price of ₹100 each. The Urban Enviro Waste Management IPO opens for public subscription on June 12 and will close on June 14.The company is a general waste handling and management services provider and 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 .

About Urban Enviro Waste Management Limited:

Urban Enviro Waste Management Limited is engaged in Indian MSW (Municipal Solid Waste) management industry providing MSW services which 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 was incorporated in 2014.
It partners with different local bodies and serve to manage and reduce waste at each stage from collection to disposal. Company’s “Solid Waste” business is operated and managed locally that provides collection, transfer, disposal services.
Urban Enviro Waste Management Limited also carries on the business of providing manpower like staff, workers, labours skilled/unskilled required by various industries and organizations.
Urban Enviro Waste Management Limited primarily undertakes: (i) MSW projects which involve door to door collection of MSW from households, slums, commercial establishments and other bulk-waste generators (community bins) from a designated area through primary collection vehicles like compactors, dumper placers and tippers and transportation of these materials, to the processing facility, transfer station or a disposal site.; (ii) MSW processing projects which involve sorting and segregating the MSW , followed by composting, as required; and (iii) Street sweeping projects which involve deploying of sweeping brooms, manpower, maintenance, consumables, disposal of the waste and any other items required for completion of the cleaning operation of the designated areas.
As of December 31, 2022, Urban Enviro Waste Management had an aggregate of 728 employees excluding management.

Urban Enviro Waste Management IPO: Financials

Urban Enviro Waste Management IPO: Salient Points

Promoters holding is 75% at present and shall stand at 59.06% post IPO.
The Net IPO Proceeds are proposed to be used in the manner

company’s business is dependent on municipal authorities for a significant proportion of its business and revenue from operations.
Business is currently concentrated to a select number of customers like Rajasthan, Maharashtra, Gujarat and Madhya Pradesh with work order or projects of Nagar Nigam Jaipur Heritage-(Rajasthan), Saoner Nagar Parishad Saoner, Dist Nagpur-(Maharashtra), Madhya Pradesh and Ahmedabad having value of contract of ₹ 1204.01 lakhs , Rs. 460.76 lakhs , ₹49.18 lakhs and ₹916.00 lakhs which 45.78% , 17.52%, 1.87% and 36.54% of its revenue from operations for the nine month period ended December 31, 2022.
Starting with the business of collection and transportation of waste, it has progressed to the field of solid waste management.
The waste management industry is growing rapidly in India, and Urban Enviro Waste Management Limited is well-positioned to benefit from this growth. The company has a reasonable track record of growth and is expected to continue to grow in the future.
Urban Enviro Waste Management Limited has been in operation for over 11 years and has a proven track record of providing waste management services to a wide range of customers, including municipalities, industries, and residential areas.
Iam likely to apply in Urban Enviro Waste Management IPO. This has less to do with fundamentals and is more due to current market listing for most IPOs in SME segment.
The issue size is relatively small and is likely to be heavily oversubscribed.
Pantomath has been involved in a number of successful IPOs. These include names like Sah Polymers Limited, AB Cotspin India Limited, Exxaro Tiles Limited, V-Marc India Limited, Gensol Engineering Limited, Surani Steel Tubes Limited, Ritco Logistics Limited, Mohini Health & Hygiene Ltd, Macpower CNC Machines Ltd etc.
GMP as reported on social media has been inching up slowly and may be in Rs. 40-45 range with positive bias.

Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.