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

Add to Calendar 2020-12-21 12:00 AM 2020-12-23 12:00 AM Asia/Kolkata Antony Waste Handling Cell Limited IPO (Antony Waste IPO) Detail Antony Waste Handling Cell Limited India

Corporate Profile

Antony Waste Handling Cell is one of India’s leading players in Municipal Solid Waste (MSW) management providing a spectrum of MSW services such as solid waste collection, transportation, processing and disposal across the country. It primarily caters to Indian Municipalities and undertakes MSW collection and transportation projects, MSW processing projects and mechanized sweeping projects. The issue period opens on 21st December till 23rd December with a price band of Rs. 313 to Rs. 315 per share for a minimum lot size of 47 shares. The total issue size is Rs. 300 Crs with a fresh issue of Rs. 85 Crs and OFS of Rs. 215 Crs. The IPO proceeds will be used to reduce the consolidated borrowings of the company and subsidiary by infusing debt in their subsidiary - AG Enviro for repayment / prepayment of a portion of their outstanding borrowings. The proceeds will also be used to partly finance Pimpri Chinchwad Municipal Corporation Waste/gas-to-energy (WTE) project through investment in subsidiaries, AG Enviro and Antony Lara Enviro Solutions Pvt. Ltd (ALESPL).   

Business Overview

Service provider with end-to-end capabilities: Company is one of the top five players in the Indian MSW management industry and one of the key players in landfill construction and management sectors having in-house expertise for landfill construction along with its management. It is also present in the emerging waste management area in India which is MSW based WTE. The Company has managed to develop internal capabilities across various stages of solid waste management projects, beginning from collection to disposal, which has enabled it to grow into a comprehensive service provider.   

Strong track record of project execution: Being one of the top players, Antony has demonstrated a track record as a comprehensive service provider equipped with the resources to handle large-scale projects for municipalities and private players. It has managed to establish a renowned track record of more than 19 years in executing solid waste projects. With specialized MSW C&T projects, MSW Processing projects and mechanized sweeping projects for municipalities and private players, it has undertaken more than 25 projects as of November 15, of which 18 are on-going. Its major clients include various municipal corporations of Delhi, Mumbai, Thane, Nagpur among others.

Diversified business model: Out of the 18 on-going projects, 12 are MSW C&T projects, 2 MSW processing projects and 4 mechanized sweeping projects. In addition to this, Antony has also managed to take projects with different time periods which expire at different times, thereby de-risking its business by providing a staggered revenue stream.      

Technology backed vehicles and equipment: As of November 15, 2020, it had a fleet of 1,147 vehicles of which 969 were equipped with GPS technology. This helps to operate the projects efficiently giving them a competitive advantage.

Financial Outlook:  Looking at the financials, the company has delivered decent growth over the last 3 years in terms of revenue as well as profits. Company relies on high working capital to operate their business. From FY18 to FY20, it's revenue increased by CAGR 17.72%, EBITDA increased by CAGR 18.28% whereas bottomline improved at a 15.90 percent CAGR in 3 years. Financial profile of the company has slightly improved in terms of debt to equity ratio which currently stands at 0.66 times.

Key Opportunities

Urbanization is a critical factor driving the MSW generation in the country. Changing lifestyle patterns and increasing disposable incomes have paved way for consumerism and has also contributed to waste generation in urban India. MSW generation is expected to grow at a CAGR of 8.9% (FY 2020-25) to reach 115.00 million TPA by Fiscal 2025. The MSW Management market is estimated at Rs. 50,000 million for FY2020 and is expected to reach Rs. 98,000 million by FY2025 at a CAGR of 14.4%. Increasing participation of professional players in collection and transportation services, development of scientific recycling and disposal methods for management of MSW are expected to be key drivers for the market.

Key Risks

Highly dependent on municipal authorities: Antony is highly dependent on municipal authorities for substantial proportion of its business and revenue and will continue to depend on them. Municipalities are in-turn highly dependent on state/ central grants/ budget allocations. Any dent in budget allocation towards MSW projects will have an adverse impact on the business conditions. Out of 18 ongoing projects 17 projects have been awarded by municipal corporations.  

Clientele concentration: The Company is dependent on a limited number of customers for a significant portion of its revenue. Though contribution by top five clients have been continuously reducing, they still contribute to over 77% of its total revenue. Therefore, Antony faces high clientele concentration risk.

High working capital requirement: The business of cleaning of waste demands to employ large numbers of workers along with other services require deployment of heavy transport vehicles which constitutes transportation and fuel costs for them. Given that it is highly dependent on municipal authorities for revenue any significant delays in progressive payments or release of retention money or bank guarantees from clients may increase working capital needs. Working capital as a percentage of total revenue has considerably increased from 10.87% in FY2018 to 42.19% for half-year ended September 2020. This may pose a huge risk going forward.   

Competition from local participants: Municipal waste management industry is highly competitive with approximately 25 players providing similar services. There are also various local participants such as transport companies and small firms which provide only transportation and fleet management services.


Antony Waste Handling Cell is valued at a P/E of 20x on H1FY21 EPS, however, there are no other listed players in the Municipal Solid waste management industry in India. The company does have several positives but for the moment it faces a number of risks. Given the small size of the IPO and the current liquidity gush in the market, investors can subscribe to this IPO for listing gains only. Investors must keep their liquidity and risk appetite in mind before applying for IPOs from a listing gain perspective.

Source: RHP filed with RoC

Issue Detail

  • Issue Open: Dec 21, 2020
  • Issue Close: Dec 23, 2020
  • Issue Type: Book Built Issue IPO
  • Face Value: Rs. 5 per equity share
  • Price Band: Rs. 313 to Rs. 315 per equity share
  • Bid Lot:47 Shares
  • Minimum Order Quantity:47 Shares
  • Listing At: BSE, NSE
  • Issue Size: Rs. 300.00 Cr

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