Antony Waste Handling Cell Limited IPO Details Dec (21-23) -2020
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Incorporated in 2001, Antony Waste Handling Cell Limited is one of the leaders in India's Municipal Solid Waste Management (MSW) industry. The business is offering a full spectrum of MSW services i.e. solid waste collection, processing, transportation, and its disposal across the country. It also plays a leading position in the landfill construction and management sector.
The company's key business operations include MSW C&T, MSW processing, and Mechanized sweeping project. As of August 31, 2020, Antony Waste has 17 MSW C&T, 2 MSW processing, and 4 mechanized sweeping ongoing projects. The company is undertaking many projects of Navi Mumbai Municipal Corporation (NMMC), Thane Municipal Corporation (TMC), Pimpri Chinchwad Municipal Corporation (PCMC), Mangaluru Municipal Corporation (MMC), New Okhla Industrial Development Authority (NOIDA), and Greater Noida Industrial Development Authority (GNIDA). It has a waste processing plant at the Kanjurmarg site.
Objects of the Issue:
The company proposes to utilize funds towards the following objects:
To finance PCMC WTE Project through investment in subsidiaries
To pay-off company's consolidated borrowings by infusing debt in Subsidiary-AG Enviro
To meet general corporate purposes.
Key Business Activities
MSW C&T Project: MSW collection from commercial establishments, households, and community bins.
MSW Processing Project: Sorting and segregating waste from MSW C&T through composting, shredding, recycling, etc.
Mechanized sweeping Project: Deploying power sweeping machines, maintenance, consumables, safe waste disposal, and others to complete cleaning operations.
Competitive Strengths
Leading player in the MSW management industry.
Consistent track record of MSW project execution.
Diversified project portfolio.
Latest technology tools, vehicles, and equipment
Experienced team of promoters.
Antony Waste Handling Cell is one of the top five players in the Indian MSW management industry with an established track record of more than 19 years.
Antony Waste Handling Cell, the second largest player in the Indian municipal solid waste management industry, will open its public issue on December 21.
The said issue will close on the third day of bidding i.e. December 23.
Equity shares are proposed to be listed on the BSE and NSE. Equirus Capital and IIFL Securities are the book running lead managers to the issue.
The IPO comprises a fresh issue of Rs 85 crore worth of shares and an offer for sale of 68,24,933 equity shares by existing shareholders.
Leeds (Mauritius) will sell 13,90,330 equity shares, Tonbridge (Mauritius) 20,85,510 equity shares, Cambridge (Mauritius) 11,58,667 equity shares; and Guildford (Mauritius) 11,58,667 equity shares through offer for sale.
Investor can put minimum bid of 47 equity shares and in multiples of 47 equity shares thereafter.
Price Band
The company has fixed price band of Rs 313-315 per share for its public issue.
Fund Raising
Antony Waste Handling Cell aims to raise Rs 298.62 crore at lower price band and Rs 299.98 crore at the upper price band.
The company garnered Rs 90 crore from anchor investors on December 18. Hence, the offer size has been reduced to Rs 66,66,343 equity shares.
Objectives of the Issue
The company proposed to utilise its fresh issue proceeds towards part-financing for waste-to-energy project at Pimpri Chinchwad through investment in its subsidiaries, AG Enviro and/or ALESPL; reduction of consolidated borrowings; and general corporate purposes.
The offer for sale money will go to selling shareholders.
Company Profile
Antony Waste Handling Cell is one of the top five players in the Indian MSW management industry with an established track record of more than 19 years. It provides full spectrum of municipal solid waste (MSW) services which includes solid waste collection, transportation, processing and disposal services across the country, primarily catering to Indian municipalities.
It is among the key players in landfill construction and management sector with in-house expertise for construction and management of landfills in a scientific manner. It is also present in the emerging waste management areas in India such as MSW based WTE.
The company has undertaken more than 25 projects, of which 18 are ongoing, as of November 15, 2020, including projects for the Municipal Corporation of Greater Mumbai, the Navi Mumbai Municipal Corporation, the Thane Municipal Corporation, Pimpri Chinchwad Municipal Corporation, the North Delhi Municipal Corporation, the Mangaluru Municipal Corporation, New Okhla Industrial Development Authority, Nagpur Municipal Corporation and the Greater Noida Industrial Development Authority.
The portfolio of 18 ongoing projects comprises 12 MSW C&T (collection and transportation) projects, two MSW processing project and four mechanised sweeping projects.
Strengths
a) A leading service provider in MSW management sector with end-to-end capabilities;
b) Strong track record of project execution;
c) Diversified business model;
d) Access to technology backed vehicles and equipment enables company to manage operations efficiently;
e) Experienced promoters and management team with strong domain expertise.
Strategies
a) Capitalise on the growth opportunities in the MSW management sector by continued focus on bidding for MSW projects;
b) Continue with rational selection of projects and strategically expand geographical footprint;
c) Moving up the MSW value chain by diversifying into the emerging waste management areas;
d) Continue to focus on enhancing operational efficiency.
Financials
Antony Waste Handling Cell reported a 79 percent year-on-year growth in consolidated profit at Rs 62.07 crore in FY20 on revenue of Rs 450.51 crore that grew by 58.8 percent YoY. Profit in FY19 declined 13 percent to Rs 34.68 and revenue increased by just 2.7 percent to Rs 283.69 crore in same year compared to FY18.
In the first half of FY21, company posted profit at Rs 29.05 crore on revenue of Rs 207.39 crore.
"Considering the P/E valuation on the upper end of the price band of Rs 315, the stock is priced at pre issue P/E of 12.35x on its actual annualised FY20 EPS of Rs 25.52. Post issue, the stock is priced at a P/E of 13.65x on its EPS of Rs 23.08. Looking at the P/B ratio at Rs 315 the stock is priced at P/B ratio of 2.81x on the pre issue book value of Rs 112 and on the post issue book value of Rs 141.64 the P/B comes out to 2.22x," research house SMC said in its note.
Promoters and Shareholding
Jose Jacob Kallarakal, Shiju Jacob Kallarakal and Shiju Antony Kallarakkal are the promoters of the company.
Jose Jacob Kallarakal held 20.41 percent stake in the company, Shiju Jacob Kallarakal 5.82 percent and Shiju Antony Kallarakkal 0.14 percent shareholding as of December 14, 2020, while promoter group including family members held 24.73 percent stake in the company.
Among public shareholders, Guildford (Mauritius) held the maximum stake of 22.83 percent, Cambridge (Mauritius) 12.08 percent, Tonbridge (Mauritius) 8.15 percent and Leeds (Mauritius) 5.43 percent.
Management
Jose Jacob Kallarakal is the Chairman and Managing Director of the company. He is one of the founders of the company and has 19 years of experience in the field of waste management.
Shiju Jacob Kallarakal is the Executive Director and the Chief Financial Officer of the company. He is also one of the founders of the company and has 19 years of experience in the field of waste management.
Karthikeyan Muthuswamy is the Nominee Director, while Ajit Kumar Jain, Suneet K Maheshwari and Priya Balasubramanian are Independent Directors on the board.
Tarjindar Singh is the Chief Operating Officer of the company. He has been associated with the company since February 13, 2014 and is managing the solid waste operations activities. He has 27 years of experience. Prior to joining Antony Waste, he had worked with Mahindra & Mahindra, Steel Strips Wheels, Reliance Infocomm, Agility Logistics, AMB Property Corporation, GatiKintetsu Express, Robinsons Cargo & Logistics.
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