Antony Waste IPO (Antony Waste Handling Cell IPO) – Date, Issue Price Band, GMP, Review, Analysis and Details
Antony Waste IPO initially came in March, 2020 but not get enough subscription due to Corona virus scare. Now Antony Waste IPO would open for subscription on 21st December, 2020. Antony Waste Management Cell is engaged in offering Municipal Solid Waste (MSW) Management services. The issue size is expected to be around Rs 300 Crores. Should you invest in Antony Waste IPO? What are the risk factors an investor should keep in mind before applying for this Antony Waste Handling Cell IPO? Let me review and provide detailed analysis about this IPO in this article.
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About Antony Waste Handling Cell Limited
Company is one of the top five players in the Indian MSW management industry with an established track record of more than 19 years, providing full spectrum of MSW services which includes solid waste collection, transportation, processing and disposal services across the country, primarily catering to Indian municipalities. They are among the select few players who have pioneered in both MSW collection and transportation sector. They are among the key players in landfill construction and management sector with in-house expertise for construction and management of landfills in a scientific manner. They are also present in the emerging waste management areas in India such as MSW based WTE.
They primarily undertake:
(i) MSW C&T 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 landfill disposal site.
(ii) MSW processing projects which involve sorting and segregating the
waste received from MSW C&T, followed by composting, recycling, shredding and compressing into RDF, as required
(iii) mechanized sweeping projects which involve deploying of power sweeping machines, manpower, comprehensive maintenance, consumables, safe disposal of the waste and any other items required for completion of the cleaning operation of the designated areas, through themselves and/or its Subsidiaries.
Antony Waste IPO Details
Here are the IPO issue details.
| Antony Waste IPO – Issue Details | |
|---|---|
| IPO Date | Dec 21 to Dec 23, 2020 |
| Face Value | Rs 5 per share |
| IPO Price band | Rs 313 – 315 per share |
| Issue Size | Total of Rs 300 Crores Fresh issue – Rs 85 Crores OFS – Rs 215 Crores |
| IPO Lot Size | 45 shares |
| Lead Managers | Equirus and IIFL Securities |
| Listing at | BSE and NSE |
Download Antony Waste IPO DRHP
Objects of issue – Antony Waste Handling Cell IPO
Here are the objects of the IPO issue.
1) Offer for Sale (OFS): The object of the Offer for Sale is to allow the selling shareholders to sell equity shares held by them. The company will not receive any proceeds from the Offer for Sale.
2) Fresh Issue: The net proceeds of the Fresh Issue
i) Part-financing for PCMC WTE Project through investment in its Subsidiaries, AG Enviro and ALESPL
ii) Reduction of its consolidated borrowings of its company and Subsidiaries by infusing debt in its subsidiary AG Enviro for repayment / prepayment of a portion of their outstanding indebtedness
iii) General corporate purposes
Who are the company promoters?
Jose Jacob Kallarakal, Shiju Jacob Kallarakal, and Shiju Antony Kallarakkal are the promoters of the company.
Company Financials
Here is the summary of the financial information of the company.
| Fin. Year ending |
Total Revenues (Rs in Millions) | Profits after tax (Rs in Millions) |
Profit % |
|---|---|---|---|
| Mar-2018 | 2,907.7 | 398.8 | 13.7% |
| Mar-2019 | 2,985.1 | 346.8 | 11.6% |
| Mar-2020 | 4,646.1 | 620.7 | 13.4% |
Its EPS for FY2020 is Rs 27.48 and last 3 years average EPS is Rs 20.14.
What are the key strengths of Antony Waste Handling Cell Limited?
Every investor should understand the company’s key strengths so that one can compare with its competitors to know how unique is such company in their business. Their investment decision would change based on these facts. Here are the key strengths of the company.
1) A leading service provider in MSW management sector with end-to-end capabilities.
2) Strong track record of project execution.
3) De-risked business model with a diverse portfolio of the projects.
4) Access to technology backed vehicles and equipment enables them to manage its operations efficiently
5) Experienced promoters and management team with strong domain expertise.
What are the various strategies of Antony Waste Handling Cell Ltd?
Company strategies would help investors to know what company is intending to do in the future and whether these strategies would help in revenue or margin growth. Such information would help investors to decide whether to invest for short term, medium term or for the long term. Here are the company strategies.
1) Capitalize on the growth opportunities in the MSW management sector by continued focus on bidding for MSW projects.
2) Continue with the rational selection of projects and strategically expand its geographical footprint.
3) Moving up the MSW value chain by increasing our presence in the emerging waste management areas in India like WTE domain.
4) Continue to focus on enhancing operational efficiency.
Why to invest in Antony Waste IPO?
Here are a few reasons to invest.
1) Antony Waste Handling Cell is one of the top 5 players in Indian MSW management. It has emerged as a niche player with the latest technologies. Currently it has more than 17 projects under its fold.
2) Strong revenue and margin growth in the last 3 years.
Risk Factors of investing in Antony Waste IPO
These risk factors can impact company revenue and margins which would affect its share price. Investors should go through these points and understand them before investing.
1) They are dependent on municipal authorities for a substantial proportion of its business and revenue. Many Municipalities have been struggling to fund various solid waste management projects from their own revenue receipts and are highly dependent on state/central grants/budget allocation. Any decline in the budgetary allocation towards MSW projects will have a material adverse impact on its business, financial condition, and results of operations. Its concentration into few customers is major risk.
2) MSW projects are typically awarded to them on satisfaction of prescribed pre-qualification criteria and following a competitive bidding process. Its business and its financial condition may be adversely affected if new MSW projects are not awarded to them.
3) They operate in limited geographies for a significant portion of their revenue. If they enter into new geographies, they might not be profitable.
4) COVID-19 pandemic, or any future pandemic or widespread public health emergency, could materially and adversely impact its business, financial condition, cash flows and results of operations.
5) Certain of its group companies and subsidiaries has incurred losses in the preceding three fiscal.
6) They operate in an industry which may require us to have higher working capital. Its inability to meet such working capital requirements may have a material adverse effect on its business, financial condition and results of operations.
7) Its operations include activities that could be hazardous to the health of its employees and other risks which could expose us to material liabilities and increased expenses and negatively impact employee morale.
8) They have had negative cash flows in the past and may have negative cash flows in the future.
9) There are outstanding legal proceedings involving the company, its subsidiaries, its directors and its promoters.
10) For complete internal and external risk factors, you can refer the RHP of the company.
Antony Waste Handling Cell IPO Promoter Holding – Pre and Post IPO
Pre-issue share holding – 51.1%
Post issue share holding – Would be updated soon
Antony Waste Handling Cell IPO GMP / Grey Market Price
Antony Waste Handling Cell IPO GMP is at Rs 50 as on 16th December, 2020
Antony Waste Handling Cell IPO Tentative Dates / Timetable
| Antony Waste IPO Schedule | |
|---|---|
| Offer Open | 21-Dec-20 |
| Offer close | 23-Dec-20 |
| Finalization of Basis of Allotment | 29-Dec-20 |
| Unblocking of ABSA and Initiation of Refunds | 30-Dec-20 |
| Credit of shares to Demat Accounts | 31-Dec-20 |
| IPO Shares Listing Date | 1-Jan-21 |
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Antony Waste IPO price valuations
Here is how the valuations look like. This section would be updated once we get confirmed news on the issue price.
1) On the upper price band of Rs 315 and EPS of Rs 27.48 for FY20, the P/E ratio works out to be 11.4x.
2) For last 3 years average EPS of Rs 20.14, the P/E ratio is 15.6x.
3) Means, the company is asking the issue price of Rs 315 of the upper price band in the P/E range of 11.4x to 15.6x.
4) There are no listed peers in the same industry, hence we cannot say Antony Waste Handling Cell share price is under priced or overpriced. However, considering the max P/E 15.6x, the issue price is reasonably priced.
Antony Waste IPO – Should you invest?
Antony Waste Handling Cell is the niche and the top player in WMS in India. Its revenues and margins are consistent and improving. Its issue price is reasonably priced. High Risk investors can invest in this IPO for listing gains and for medium to long term perspective.
Antony Waste IPO Recommendations / reviews by leading stock market experts
Here are the recommendations from stock market experts.
Dilip Dawda – Subscribe for long term
GEPL Capital – Subscribe
SP Tulsian – Avoid
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Antony Waste Handling Cell IPO
GMP 125 +/- 1
Kostak 425 +/- 10
Subject to 5,000
Counter is dry
No Volumes
Only Bhav
Thanks Eagleeye for your comments
Current GMP price means , price band + GMP 50…is my understanding right ?
Its the premium to the issue price.