Urban Enviro IPO: Final Subscription Status

Urban Enviro Waste Management IPO closed on Wednesday, 14th May 2023. The IPO had opened for subscription on 12th June 2023. Let us look at the updated final subscription status of Urban Enviro Waste Management IPO at the close of subscription on 14th June 2023. It is a solid waste management company and among the few in the organized sector in India in this space.

A quick word on Urban Enviro Waste Management Ltd and the SME IPO

Urban Enviro Waste Management Ltd, is an SME IPO on the NSE which opened for subscription on 12th June 2023 and closed for subscription on 14th June 2023. The company was incorporated in 2011, and it currently provides waste management solutions & municipal solid waste (MSW) management services; a service which is still in the unorganized segment in India. Its service palate includes solid waste collection, transportation, segregation, processing, and disposal services across the states of Gujarat, Rajasthan, Madhya Pradesh, and Maharashtra. It directly caters to the respective municipalities as well as to select large institutions.

Apart from municipalities, Urban Enviro Waste Management Ltd also caters to local bodies; apart from providing direct waste management services to residential localities, institutions, hospitals, cantonment boards etc. Till date, the company has undertaken more than 24 projects of which 21 are ongoing projects and the others have been completed. Some of its notable projects are under execution for Jaipur Nagar Nigam, Ankleshwar, NEERI, MIHAN India Ltd, NHDC Limited, Indira Sagar Power Station and many more.

The ₹11.42 crore IPO of Urban Enviro Waste Management Ltd comprises of a fresh issue and an offer for sale. The total SME IPO of Urban Enviro Waste Management Ltd entails issue of 11.424 lakh shares at which at the IPO fixed issue price of ₹100 per share aggregates to ₹11.42 crore. The stock has a face value of ₹10 and retail bidders can bid in minimum lot size of 1,200 share each. Thus, the minimum investment of ₹120,000 in the IPO is the base limit. That is also the maximum that a retail investor can apply for in the IPO.

HNIs can invest in 2 lots of 2,000 shares worth ₹240,000 as the bare minimum investment. There is no upper limit for the HNI / NII category. Urban Enviro Waste Management Ltd will deploy the funds for repaying some debt and for funding working capital needs of the company. Post the IPO, the promoter equity in the company will get diluted from 75.00% to 59.06%. The issue is lead managed by Pantomath Capital Advisors Private Ltd, while Bigshare Services Private Ltd will be the registrars to the issue. Let us now turn to the final subscription details of the IPO as of the close of subscription on 14th June 2023.

Final subscription status of Urban Enviro Waste Management Ltd

Here is the subscription status of the Urban Enviro Waste Management Ltd IPO as at close on 14th June 2023.

The issue was only open for retail investors and for non-institutional buyers. There was a broad quota designed for each of the segments viz. the retail and the HNI NII. The table below captures the allocation reservation done for each of the categories out of the total number of shares offered in the IPO.

The above table accounts for the entire 11.424 lakh shares issued by the company. Obviously, that means there was no anchor allocation done by the company ahead of the IPO. There is a 5% allocation for the market maker to offer two way buy and sell quotes post listing to keep the counter liquid. The company has appointed Asnani Stock Brokers and Nikunj Stock Brokers with a quota of 57,600 shares for the market makers. This market maker share is normally carved out of the HNI / NII quota.

The oversubscription of the IPO was dominated by the HNI / NIIs followed by the retail investors in that order; although it must be said that the overall subscription was extremely impressive at the end of the last day of subscription. The table below captures the day-wise progression of the subscription status of Urban Enviro Waste Management Ltd IPO.

It is clear from the above table that while the retail portion as well as the HNI / NII portion got fully subscribed on the first day of the IPO itself. Both the categories built some amount of moderate traction on the second day but the real action was to come only on the last day of the IPO when the subscriptions actually jumped manifold. Both categories of investors viz., HNIs / NIIs and retail categories saw good traction and build up of interest on the last day of the IPO and that is evident in the final numbers. There is an allocation of 57,600 shares to two joint market makers viz. Nikunj Stock Broking and Asnani Stock Broking for market making, which has been included in the HNI / NII quota.

The IPO of Urban Enviro Waste Management Ltd opened for subscription on 12th June 2023 and closed for subscription on 14th June 2023 (both days inclusive). The basis of allotment will be finalized on 19th June 2023 and the refunds will be initiated on 20th June 2023. In addition, the demat credits are expected to happen on 21st June 2023 and the stock is scheduled to list on 22nd June 2023 on the NSE SME segment. This is the segment, in contrast to the mainboard, where IPOs of small and medium enterprises (SMEs) are incubated.