Urban Enviro Waste Management
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 12 Jun 2023 – 14 Jun 2023
- Listing date
- 22 Jun 2023
- Face value
- ₹10 per share
- Issue price
- ₹100 per share
- Lot size
- 1,200 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹11.42 Cr
- Market cap at offer price
- ₹34.78 Cr
- Promoter holding
- 65.00% → 51.18% pre-issue → post-issue
- ISIN
- INE0O0201019
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Pantomath Capital Advisors Pvt.Ltd.
- Registered office
- F No 401, Sarkar Apartment, P no.127, Shankar Nagar, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 0 | — | — |
| Market maker | 57,600 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹100
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,20,000 |
| S-HNI (min) | 2 | 2,400 | ₹2,40,000 |
| S-HNI (max) | 8 | 9,600 | ₹9,60,000 |
| B-HNI (min) | 9 | 10,800 | ₹10,80,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 3.07 | — |
| P/E (×) | 32.57 | — |
| Market cap | — | ₹34.78 Cr |
Key performance indicators
- Return on net worth
- 47.01%
- PAT margin
- 6.57%
- NAV per share
- ₹9.30
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Urban Enviro Waste Management
Urban Enviro Waste Management Limited was originally incorporated as 'Nagpur Waste Handling Private Limited' on June 02, 2011, and renamed to 'Urban Enviro Waste Management Private Limited' on March 30, 2022. The company operates in the Indian MSW management industry, providing MSW services including solid waste collection, transportation, segregation of waste and processing and disposal services across cities in Gujarat, Rajasthan, Madhya Pradesh and Maharashtra, primarily catering to local municipalities. The company also carries on the business of providing manpower like staff, workers, and labourers (skilled/unskilled) required by various industries and organizations. The company partners with different local bodies to manage and reduce waste from collection to disposal.
Company Analysis
from RHPUrban Enviro is a Municipal Solid Waste (MSW) management company providing collection, transportation, segregation, processing and disposal services across Gujarat, Rajasthan, Madhya Pradesh and Maharashtra.
Urban Enviro Waste Management Limited was originally incorporated as 'Nagpur Waste Handling Private Limited' on June 02, 2011, and renamed to 'Urban Enviro Waste Management Private Limited' on March 30, 2022. The company operates in the Indian MSW management industry, providing MSW services including solid waste collection, transportation, segregation of waste and processing and disposal services across cities in Gujarat, Rajasthan, Madhya Pradesh and Maharashtra, primarily catering to local municipalities. The company also carries on the business of providing manpower like staff, workers, and labourers (skilled/unskilled) required by various industries and organizations. The company partners with different local bodies to manage and reduce waste from collection to disposal.
Objects of the Issue
- Repayment of certain secured borrowings in full availed by our Company ₹210.23 Lakhs p.25
- Funding the working capital requirements of our Company ₹447.37 Lakhs p.25
- General corporate purposes ₹182.78 Lakhs p.25
- Repayment of certain secured borrowings (including accrued interest and foreclosure charges, if any) in full availed by our Company ₹210.23 lakhs p.77
- Funding the working capital requirements of our Company ₹447.37 lakhs p.77
- General corporate purposes ₹182.78 lakhs p.77
- Objects of the Offer section not provided in this document excerpt (Part 4 of 6)
Issue Structure
- Total Issue
- ₹1,142.40 Lakhs (11,42,400* Equity Shares)
- Fresh Issue
- ₹920.00 Lakhs (9,20,000* Equity Shares)
- Offer for Sale
- ₹222.40 Lakhs (2,22,400* Equity Shares)
- Price Band
- ₹100 per Equity Share
- Lot Size
- 1200 Equity Shares and in multiples thereof
- Face Value
- ₹10 per Equity Share
Business Model
The company primarily undertakes: (i) MSW projects which involve door to door collection of MSW from households, slums, commercial establishments and other bulk-waste generators through primary collection vehicles like compactors, dumper placers and tippers and transportation of these materials to the processing facility, transfer station or 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. Revenue is earned through contracts awarded by various municipalities and local bodies.
Business Segments
SWOT Analysis
- • Diversified service portfolio across collection, transportation, segregation, and processing(p.113)
- • Experienced management with combined 11+ years in solid waste management(p.113)
- • ISO certifications demonstrating quality and environmental standards(p.112)
- • Substantial workforce of 2,545 full-time employees enabling operational scale(p.113)
- • Growing revenue trajectory with 33% CAGR from FY2020 to 9M FY2023(p.112)
- • Improving EBITDA margins from 12.86% to 18.75%(p.112)
- • Large vehicle fleet of 428 vehicles enabling comprehensive operations(p.121)
- • Heavy dependence on municipal authorities for revenue(p.32)
- • Concentrated customer base with top 5 clients representing 82.38% of revenue(p.33)
- • Limited geographic presence concentrated in Maharashtra, Rajasthan, Gujarat and Madhya Pradesh(p.34)
- • Significant working capital requirements(p.34)
- • High debt levels and covenant restrictions(p.36)
- • High debt-equity ratio and significant financial leverage(p.89)
- • Low debt service coverage ratio indicating difficulty meeting debt obligations(p.89)
- • Weak net profit margin indicating lower profitability efficiency(p.89)
- • Dependence on new borrowing to fund operations(p.79)
- • Limited scale compared to peers(p.90)
- • High debt-to-equity ratio of 2.86x indicating significant leverage(p.112)
- • Deteriorating interest coverage ratio from 6.55x to 2.48x(p.112)
- • Weak debt service coverage of only 0.42x(p.112)
- • Declining net profit margin from 6.57% to 4.05%(p.112)
- • Concentration risk with major shareholder holding 64.98% of equity(p.156)
- • Limited presence to only 4 states with geographic concentration in Rajasthan(p.120)
- • Significant promoter-related borrowing dependency(p.157)
- • Expansion in Municipal Solid Waste Management industry driven by government initiatives(p.25)
- • Growth potential from focus on circular economy and waste recycling(p.25)
- • Growing municipal solid waste management market with increased processing mandate(p.96)
- • Government focus on Swachh Bharat Mission creating implementation opportunities(p.96)
- • Large revenue generation potential from waste management sector(p.96)
- • Expansion of range of service offerings(p.87)
- • Increasing focus on circular economy and resource recovery(p.96)
- • Expansion into Tier-2 and Tier-3 cities with untapped MSW management potential(p.113)
- • Geographic expansion beyond current 4 states to new markets(p.113)
- • Growing formalization of waste management sector with regulatory tailwinds(p.123)
- • EU directives creating momentum for scientific waste management globally(p.110)
- • Opportunities in waste-to-energy and resource recovery through vermi composting(p.123)
- • India's Swachh Bharat Mission creating large-scale MSW contract opportunities(p.117)
- • Increasing urbanization with Maharashtra already 50% urban driving waste generation(p.109)
- • Exposure to municipal funding volatility and policy changes(p.32)
- • Intense price-based competition in competitive bidding process(p.33)
- • High fuel cost volatility impacting margins(p.41)
- • Labour-intensive operations subject to regulatory and wage pressures(p.41)
- • Exposure to environmental and regulatory compliance costs(p.43)
- • Changes in GST regime affecting tax efficiency and profitability(p.48)
- • Implementation of new labour codes increasing employee costs(p.48)
- • Foreign exchange regulation restrictions limiting capital raising ability(p.48)
- • Anti-takeover provisions preventing potential acquisition premiums(p.49)
- • IPO share price volatility and post-listing trading risks(p.50)
- • Uncertain regulatory interpretations affecting business operations(p.48)
- • Increasing competition from organized sector players(p.123)
- • Dependence on municipal contracts subject to re-bidding and regulatory changes(p.123)
- • Regulatory risk from stringent environmental and labor compliance requirements(p.124)
- • Exposure to input cost inflation in fuel and labor expenses(p.113)
- • Cyclicality risk from municipal budget constraints affecting contract renewal(p.113)
- • Inadequate insurance coverage creating potential liability exposure(p.124)
- • Stricter EU waste hierarchy standards pressuring traditional landfilling business models(p.110)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Suresh Sharma | Promoter | 64.98% | 51.17% |
| Mr. Suresh Sharma | Promoter | 64.98% | 51.17% |
| Mrs. Sheela Suresh Sharma | Promoter Group | 0.01% | 0.01% |
| Mr. Kamlesh Sharma | Promoter Group | 0.01% | 0.01% |
| Mr. Suresh Sharma | Promoter | 64.98% | — |
| Suresh Sharma | Promoter | — | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.