Samco securities limited

Antony Waste Handling Cell Ltd IPO (Antony Waste IPO) Detail

Add to Calendar 2020-03-04 12:00 AM 2020-03-06 12:00 AM Asia/Kolkata Antony Waste Handling Cell Ltd IPO (Antony Waste IPO) Detail Antony Waste Handling Cell Ltd India

Corporate Profile

Antony Waste handling cell is one of the top five players in the MSW management industry, 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 primarily undertake MSW collection and transportation projects, MSW processing projects and mechanized sweeping projects.

Issue Details

Dates: March 04 to March 06, 2020

Price Band: Rs. 295 to Rs. 300 per share

Minimum Lot: 50 shares

Total Issue Size: Up to Rs. 206 Crs (Fresh issue Rs. 35 Crs and OFS Rs. 171 Crs)

Objects of the Offer

The proceeds from the fresh issue will be used for Reduction of the consolidated borrowings of the Company by infusing debt in their Subsidiary - AG Enviro Infra Projects Private Limited for repayment / prepayment of portion of their outstanding indebtedness. Offer for Sale will not form part of the Net Proceeds.

Business and Financial Overview

The company is one of the top 5 players in Municipal Solid Waste management industry with a track record of 17 years. It provides services such as solid waste collection of solid waste form households restaurant, transportation, processing and disposal services to Indian municipalities. The company is a key player in landfill construction and management sector as well. 55% of its revenues are derived from the transportation and collection segment while the balance is derived from the processing segments.. Major clients for the company include various municipal corporations of delhi, Mumbai, thane, Nagpur among others. The company has undertaken more than 25 projects of which 17 are ongoing.

Looking at the financials, the company has delivered poor growth over the last 3 years in terms of Revenue as well as Profits. Although this growth is expected to kick in as some undertaken projects begin in full swing. The company requires high working capital to run their business and has negative cash flows. From FY17 to FY19, the company’s EBITDA increased from Rs 802.41 million to Rs 910.05 million, representing a CAGR of 6.50%. Net worth for Fiscals 2017, 2018 and 2019 was 35.74%, 24.48% and 18.10%, respectively. The company has a debt to equity ratio of 1.06.

Key Opportunities

Urbanization is a critical factor driving the MSW generation in the country. Changing lifestyle patterns, increasing disposable incomes, have paved way for consumerism and, have also contributed to waste generation in urban India. MSW generation is expected to grow at a CAGR of 5% (FY 2018-23) from 55 Million TPA in FY 2018 to reach 70 Million TPA by FY2023. The MSW Management market is estimated at INR 30,000 Million for FY2018 and is expected to reach INR 62,000 Million by FY 2023 at a CAGR of 15.6%. Increasing participation of professional players in collection and transportation services and development of scientific recycling and disposal methods for management of MSW is expected to be key driver for the market.

To tackle the growing menace arising out of waste generation, the Government has initiated several schemes at central, state, and local levels. Focused attention toward development of urban infrastructure received a boost with the implementation of Swachh Bharat Mission (Urban) entailing an investment of ? 620.1 Billion. This has been a key boost to the industry.

Key Risks

The company is dependent on municipal authorities for their revenues. Municipalities are inturn dependent on state budget allocations. Any decline in budget allocation will have a material impact on the business.

The company depends on a limited number of customers for a significant portion of their revenue. Top five clients contributed to over 90% of their total revenue. Therefore the company has a high concentration risk.

The waste management industry is also very competitive with 20-30 players providing similar services. There are also various local participants such as transport companies and small firm. Therefore the industry is highly competitive.


The company is valued at a price to earnings multiple of Rs 13 per share. There are no other listed players in the Municipal Solid waste management industry in India. Overall the company has strong growth opportunities but The IPO dates clashing with that of the SBI Cards IPO coupled with the volatility around the coronavirus are key negatives currently. Therefore we suggest our clients to NOT subscribe in this IPO. One can keep the stock in their watchlist and take positions depending on the performance in the future.

Watch this video to know what our research analyst recommends about this 200cr IPO

Source: RHP filed with RoC

Issue Detail

  • Issue Open: Mar 04, 2020
  • Issue Close: Mar 06, 2020
  • Issue Type: Book Built Issue IPO
  • Face Value: Rs.5 Per Equity Share
  • Price Band: Rs 295 to Rs 300 Per Equity Share
  • Bid Lot:50 Shares
  • Minimum Order Quantity:50 Shares
  • Listing At: BSE, NSE
  • Issue Size: 6,846,440 Eq Shares of Rs.5

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