– By Dilip Davda
- The company is engaged in providing integrated municipal solid waste management.
- Its operations span across Maharashtra, Rajasthan, Gujarat, Chhattisgarh and Uttarakhand.
- It marked growth in its top and bottom lines for the reported periods.
- Based on its recent average financial performance, the RI appears fully priced.
- Investors may park funds for medium to long term.
ABOUT COMPANY:
Urban Enviro Waste Management Ltd., (UEWML) is engaged in the business of integrated municipal solid waste management, including collection, transportation, segregation, processing, recycling and disposal of municipal solid waste. The Company provides waste management services primarily to municipal corporations and other government authorities through project-based and tender-driven contracts.
The Company has operations across Maharashtra, Rajasthan, Gujarat, Chhattisgarh and Uttarakhand and undertakes end-to-end waste management activities in accordance with the requirements of the respective contracts and applicable regulatory requirements. The Company has developed and deployed a fleet of vehicles and other equipment for waste collection and transportation and has adopted technology-enabled systems such as GPS-based vehicle tracking, route optimization, digital monitoring and IoT-enabled infrastructure to improve operational efficiency and monitoring.
The Company’s business is substantially dependent on government and municipal contracts, and its operations require adequate working capital to meet expenses relating to manpower, fuel, transportation, vehicle maintenance, equipment and project execution. The offer document is silent on its employee’s strength.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 8660000 equity shares of Rs. 10 each at a fixed price of Rs. 80 per share to mobilize Rs. 69.28 cr. The RI opens for subscription on November 04, 2026, and will close on November 18, 2026. The company is offering RI in the ratio of 1 for 1 to its eligible stakeholders as of the record date of October 28 2026. The company is asking for full money on application for number of shares applied. Post allotment, RI shares will be listed on NSE SME Emerge. The company is spending Rs. 0.35 cr. for this RI process, from the net proceeds, Rs. 37.65 cr. for working capital, Rs. 21.00 cr. for adjustment towards conversion of unsecured loans from promoters into equity, Rs. 10.28 cr. for general corporate purposes. The market lot for RI is 800 shares.
The RI is solely lead managed by the company itself, and Bigshare Services Pvt. Ltd. is the registrar to the issue.
Post-RI, company’s current paid-up equity capital of Rs. 8.66 cr. (8660000 equity shares) will stand enhanced to Rs. 17.32 cr. (17320000 shares). Based on the RI pricing, the company is looking for a market cap of Rs. 138.56 cr.
FINANCIAL PERFORMANCE:
the financial performance front, for the last two fiscals, the company has posted total revenue / net profit of Rs. 141.05 cr. / Rs 10.26 cr. (FY25), Rs. 182.14 cr. / Rs. 14.88 cr. (FY26). For H1 of FY27, it has earned a net profit of Rs. 8.47 cr. on a total income of Rs. 94.17 cr. The company marked steady growth in its financial performances for the reported periods. Higher trade receivables of Rs. 64.67 cr. as of 31 March 26, raise concern.
DIVIDEND POLICY:
The company has not paid any dividends for the last three years. It will adopt a prudent dividend policy, based on its financial performance and future prospects. The offer document is silent on its dividend policy.
SCRIP PERFORMANCE: BASED ON NSE WEBSITE DATA: SCRIP CODE: URBAN (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 129.00 on October 27, 2026, and opened on an ex-right basis at Rs. 116.00 on October 28, 2026. Since then, it has marked a high/low of Rs. 119.50 / Rs. 96.00. The scrip last closed at Rs. 99.10 as of November 03, 2026. For the last 52 weeks’ it has posted a high/low of Rs. 157.07 / Rs. 88.62.
The promoters’ holding has been at 51.19%L for the last two quarters ended on September30, 2026. The counter is trading above the RI price, with vested interest operations.
CONCLUSION:
UVWML is engaged in providing integrated municipal solid waste management. Its operations span across Maharashtra, Rajasthan, Gujarat, Chhattisgarh and Uttarakhand. It issued bonus shares in the ratio of 1 for 1 in February 2025. It marked growth in its top and bottom lines for the reported periods. It is poised for bright prospects ahead. Based on its recent average financial performance, the RI appears fully priced. Investors may park funds for medium to long term.
Review By Dilip Davda on August, 2026
Review Author
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detailed fundamental and financial analysis of companies coming up with IPOs helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
