Things to know about Antony Waste Handling Cell Ltd IPO
20th Dec 2020
About the Company:
The company was incorporated back in 2001, starting with a simple business of collection and transportation of waste, it has come a long way in the field of solid waste management since then.
The company is a part of the 'Antony' group. The company is one of the top five players in the Indian Municipal Solid Waste (MSW) management industry with an established track record of 17 years.
The company is currently undertaking projects for the Municipal Corporations of Greater Mumbai, Navi Mumbai, Thane, North Delhi, Ulhasnagar, Mangalore. In the past, it has also undertaken projects for Municipal Corporations of Delhi, Gurgaon Amritsar, Kalyan Dombivali and Jaipur.
About the IPO
The IPO of Antony Waste Handling Cell Ltd aims at raising INR 300 crores out of which the fresh issue is of INR 85 crores comprising 26,98,412 shares and the remaining INR 215 crores will be raised through offer for sale of 68,24,933 shares. The IPO will open for subscription on 21st December (Monday) and close on 23rd December (Wednesday). The price band has been fixed at ₹313 to ₹315 with the minimum lot size of 47 shares. This means one has to pay at least ₹14,805 to bid for the issue.
Equirus Capital and IIFL Securities are the leading book managers for the issue.
Antony Waste Handling Cell Ltd IPO Details
| IPO Date | 21st December, 2020 to 23rd December, 2020 |
|---|---|
| Issue Type | Book Built Issue IPO |
| Issue Size | 95,23,345 Eq Shares of ₹5 (aggregating up to ₹300 Cr) |
| Fresh Issue | 26,98,412 Eq shares of ₹5 (aggregating upto ₹85 Cr) |
| Offer For Sale | 68,24,933 Eq shares of ₹5 (aggregating upto ₹215 Cr) |
| Face Value | ₹5 per equity share |
| IPO Price | ₹313 to ₹315 per equity share |
| Market Lot | 47 Shares |
| Min Order Quantity | 47 Shares |
| Listing at | BSE, NSE |
Antony Waste Handling Cell Ltd IPO Tentative Timetable
| Bid/Offer Opens On | 21st Dec, 2020 |
| Bid/Offer Closes On | 23rd Dec, 2020 |
| Finalisation of Basis of Allotment | 29th Dec, 2020 |
| Initiation of Refunds | 30th Dec, 2020 |
| Credit of Shares to Demat Acct | 31st Dec, 2020 |
| IPO Shares Listing Date | 1st Jan, 2021 |
Lot Size And Price
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Minimum | 1 | 47 | ₹14,805 |
| Maximum | 13 | 611 | ₹1,92,465 |
Promoter Holding
| Pre Issue Share Holding | 51.10% |
|---|---|
| Post Issue Share Holding | 46.02% |
Objective of the issue:
The company will utilise its fresh issue proceeds towards part-financing for the waste-to-energy project at Pimpri Chinchwad through investment in its subsidiaries AG Enviro and ALESPL.
It also plans at reducing consolidated borrowings of the company and its subsidiaries by infusing debt in its subsidiary.
Important Finances
Summary Of Financial Information
| Particulars | For the year (₹ in million) | ||
|---|---|---|---|
| 31-Mar-20 | 31-Mar-19 | 31-Mar-18 | |
| Total Assets | 6,721.03 | 5,126.38 | 4,280.70 |
| Total Revenue | 4,646.11 | 2,985.18 | 2,907.78 |
| Profit After Tax | 620.76 | 346.82 | 398.84 |
Company's Strength:
- It is one of the leading names in MSW management with end-to-end capabilities
- The efficiency of the company's processes is boosted by having access to technology-backed vehicles and equipment.
- It has 17 years of experience in executing solid waste projects and has a track record as a comprehensive service provider equipped with resources to handle large scale projects.
- The company should be able to replicate the top-line performance for FY21.
- The company expects to double its market share in the industry in the next five years.
Risks:
- High dependence on municipal authorities for a substantial proportion of business and revenue. Any decline in the budgetary allocation towards MSW projects will have an adverse impact on the company's business.
- Dependence on a limited number of customers and limited geographies.
- Solid waste management industry tends to require companies to have high working capital. If the company fails to meet the working capital requirement, then it can affect its business.
- The company doesn't have any experience in WTE (Waste-To-Energy) projects, hence it cannot assure investors better returns or any returns at all from the two WTE projects in its portfolio.
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