Antony Waste IPO: Listing Update
Antony Waste Handling Cell, the last IPO of 2020, did a stellar listing on the New Year Day, at ₹436.10 a premium of 38.46% over the issue price of ₹315. As of 10:30 AM on the listing day, the stock was trading at ₹467.80 a premium of 48.5%. Antony Waste IPO received decent response across all investor categories – QIB, NII and RII. The issue was subscribed 15.04 times overall.
Antony Waste Handling Cell raised a total of ₹300 crores from this issue, which consisted of a fresh issue of ₹85 crores and an offer for sale of Rs ₹215 crores by the promoter and selling shareholders.
Key Updates
Live Subscription Status
| Investor Category | Final |
|---|---|
| Institutional (QIB) | 9.672x |
| Non-Institutional (NII) | 18.688x |
| Retail (RII) | 16.547x |
| Total Subscription | 15.041x |
Company Info
Antony Waste Handling Cell, incorporated in 2001, is one of the top five players in the Indian Municipal Solid Waste (MSW) management industry. It provides a full spectrum of MSW services including solid waste collection, transportation, processing, and disposal services, primarily catering to municipalities.
Key Differentiators:
- One of the select few players who have pioneered in both the MSW collection and transportation sector.
- A key player in landfill construction and management sector with in-house expertise for construction and management of landfills in a scientific manner.
- Presence in the emerging waste management areas in India such as MSW based Waste Treatment Enhancer (WTE).
Competitive Strengths
- Leading service provider in MSW management sector with end-to-end capabilities
- A de-risked business model with a diverse portfolio of projects
- Access to technology backed vehicles and equipment for operational efficiently
- Experienced Promoters and management team with strong domain expertise
- Strong track record of project execution
Company Strategy
- Capitalize on the growth opportunities in the MSW management sector by continued focus on bidding for MSW projects
- Continue with a rational selection of projects and strategically expand the geographical footprint
- Moving up the MSW value chain by diversifying into the emerging waste management areas
- Continue to focus on enhancing operational efficiency
Financial Performance:
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Revenue from Ops | 2,761.36 Cr | 2,836.89 Cr | 4,505.10 Cr |
| Profit before Tax | 487.87 Cr | 476.80 Cr | 819.56 Cr |
| EPS (Basic) | 22.49 | 20.38 | 27.48 |
Proceeds from the IPO will be used to:
- Part-financing for Pimpri Chinchwad Municipal Corporation (PCMC) WTE Project through investment in its subsidiaries, AG Enviro and ALESPL;
- Reduction of consolidated borrowings of the parent and subsidiaries by infusing debt in AG Enviro and
- General corporate purposes
Antony Waste IPO Dashboard
Issue Details
| Type | Value |
|---|---|
| Issue Size | ₹300 Cr. (95,23,345 shares) |
| Fresh Issue | ₹85 Cr. (26,98,412 shares) |
| offer for Sale | ₹215 Cr. (68,24,933 shares) |
| Face Value | ₹5/- per Equity Share |
| IPO Price | ₹313- ₹315 |
| Lot Size | 47 |
| Lots | Min 1 – Max 13 |
Key Dates
| Date Type | Date |
|---|---|
| Bid Open | 21/12/2020 |
| Bid Close | 23/12/2020 |
| Allotment Finalization | 29/12/2020 |
| Initiation of Refunds | 30/12/2020 |
| Credit of Shares | 11/12/2020 |
| Listing Date | 1/01/2021 |
Lot Size and Price
| Lots | Shares | Amount |
|---|---|---|
| 1 | 47 | ₹14,805 |
| 13 | 611 | ₹1,92,465 |
Promoter Holding
| Holding | Percentage |
|---|---|
| Pre-Issue | 51.10 % |
| Post – issue | 46.23 % |
Antony Waste IPO: Investor Quota and Shares Offered
| Investor Type | Quota | Shares on Offer |
|---|---|---|
| QIB | 50% | 19,04,669* shares |
| NII | 15% | 14,28,502 shares |
| RII (Retail) | 35% | 33,33,171 shares |
| Total | 100% | 66,66,342 shares |
Antony Waste IPO: Day-Wise Subscription Status
| Day | Day 1 | Day 2 | Day 3 |
|---|---|---|---|
| QIB | 0.630x | 0.642x | 9.672x |
| NII | 0.083x | 0.279x | 18.688x |
| Retail | 3.559x | 7.219x | 16.547x |
| Total | 1.975x | 3.854x | 15.041x |
Live subscription status is available at the beginning of this page
Analyst Recommendations – Should you subscribe?
Choice – Subscribe with caution
“At the higher price band, the company’s share is valued at a P/E multiple of 26.1x (to its restated TTM EPS of Rs. 12.1), which is a discount to the peer average of 32.7x. One of its global peers, Waste Management Inc. has acquired Advanced Disposal Services Inc. at an enterprise value of $4.9 billion. The deal was valued at EV/sales multiple of 3x and EV/EBITDA multiple of 12.1x. Considering these transaction multiples, the valuation demanded by Antony Waste seems to be attractive,” said the brokerage.
Angel Broking – Subscribe with caution
“For Antony Waste Handling Cell to grow its business it needs to win new contracts from municipalities. The top 5 clients contributed 81.8% of the revenue of the fiscal year 2020. So in the future if a company is not able to win an existing major contract again, it will impact the financials adversely,” said Keshav Lahoti
Prabhudas Lilladher – Subscribe for near term and listing gains
Antony Waste IPO – Risks
- Company is dependent on municipal authorities for a substantial proportion of the business and revenue. Any reduction in municipal spending can adversely impact the business.
- MSW projects are typically awarded on the satisfaction of prescribed pre-qualification criteria and via tenders. The business and financial condition may be adversely affected if new MSW projects are not awarded to them.
- The company is dependent on a limited number of customers for a significant portion of the revenue. Loss of any of the major customer may adversely affect the business.
- A significant portion of the company’s revenue is from operations in limited geographies. Projects in new geographies may not be as profitable as the current ones.
- Certain group companies and subsidiaries have incurred losses in the preceding three Fiscals.
For complete internal and external risk factors, you can refer the DRHP of the company.
Antony Waste IPO: Registrar and Lead Managers
Registrar of the Issue
Link Intime India Private Limited
C 101, 247 Park, L.B.S.Marg, Vikhroli (West), Mumbai, Maharashtra 400078
Phone: 022 49186270
Email: [email protected]
