Antony Waste Handling Cell Limited IPO Details

21 Dec 2020  Read 3411 Views

One of India's major players in the waste management sector, Antony Waste Handling Cell Limited, is coming up with an IPO on December 21, 2020. This is the second attempt by the company to release an IPO. Let us take a closer look at the facts and figures of this IPO.
 

Antony Waste Handling Cell Limited:

Antony Waste Handling Cell Limited was incorporated in 2001. It has provided Municipal Solid Waste (MSW) management services, including solid waste collection, transportation, processing, and disposal, mechanized sweeping, and MSW C&T. 

The company has established itself as a key player in the construction of landfills, management sector, and MSW based waste-to-energy (WTE).

What are the main business activities of the company?

The business activities of the company include:

  • Door to door collection of MSW from houses, slums, commercial buildings, and community bins. For this purpose, it employs primary collection vehicles like compactors, tippers, and dumper placers that collect the waste and transport it to the processing facility or a landfill.
  • Activities like segregating the waste collected from MSW C&T are then followed by composting, recycling, shredding, and compressing into Refused Derived Fuel (RDF).
  • Mechanized sweeping activities involving power sweeping machines, comprehensive maintenance, and all other activities required to clean specific areas.

Some noteworthy facts about the company:

  • As of January 2020, the company has successfully handled and completed about 25 projects for private entities and municipalities.
  • The company boasts of a diverse clientele of some big institutions like Municipal Corporation of Delhi (MCD), Kalyan Dombivali Municipal Corporation (KDMC), and Jaypee International Sports.
  • The company declared in its red herring prospectus (RHP) that it owns a vehicular fleet of about 1,147 vehicles, of which 969 vehicles are equipped with GPS technology.
  • The ongoing projects of the company include twelve MSW-C&T, two MSW processing, and four mechanized sweeping projects. 
  • The company has a waste processing plant at the Kanjurmarg site.
  • The diversified businesses of the company include automotive body-building and other ancillary industries. 

How has Antony Waste Handling Cell Limited performed financially?

Particulars 

For the year ended on (figures in ₹ million)

September 30, 2020

March 31, 2020

March 31, 2019

March 31, 2018

Total Revenue

2,151.01

4,646.11

2,985.18

2,907.78

Net Profit 

290.50

620.76

346.82

398.84

As seen from the above date, the company has been consistently reporting profits over the years. The profits have generally been showing an upward trend and have increased by 78.98% in 2020 as compared to 2019. 

                                       

A look at the strengths of Antony Waste Handling Cell Limited:

  • Equipped with end-to-end capabilities, Antony Waste Handling Cell Limited has established itself as a leading service provider in the MSW waste management sector. 
  • The company has built up a strong reputation for executing solid waste management projects. It has demonstrated its ability to handle large-magnitude projects for municipalities and private business entities.
  • Antony Waste Handling Cell Limited operates a diversified business model, which is evident from the number, size, and duration of its eighteen ongoing projects - twelve MSW-C&T, two MSW processing, and four mechanized sweeping projects. This is one of the indicators of the future growth and profitability potential of the company.
  • The company runs a massive number of GPS-enabled vehicles equipped with all modern technology to boost the company's efficiency.
  • The management of Antony Waste Handling Cell Limited comprises experienced professionals with significant experience of working in this business domain. This helps the company in running its operations effectively and efficiently, and nurture quality relationships with the clients.

What are some of the growth strategies of the company?

  • Antony Waste Handling Cell Limited should focus on capitalizing on MSW waste management's growth opportunities by bidding for more MSW management projects.
  • The company already has a diversified plethora of ongoing projects. By rationally choosing more projects, the company can work on strategically expanding its geographical footprint.
  • The company can tap into emerging MSW management areas and solidify its position as a pioneer while climbing up the MSW value chain.
  • Antony Waste Handling Cell Limited can work on enhancing its operational efficiency.

Antony Waste Handling Cell Limited IPO details:

IPO Opening Date

December 21, 2020

IPO Closing Date

December 23, 2020

Issue type

Book built IPO issue 

Face value

Rs. 5 per equity share

Issue price (IPO price band)

Rs. 313 to 315 per equity share

Market lot

47 shares

Minimum order quantity

47 shares

Minimum investment

Rs. 14,805 (1 lot of 47 shares)

Maximum investment

Rs. 1,92,465 (13 lots totaling 611 shares)

Listing at?

NSE and BSE

Issue size

95,23,345 equity shares of Rs. 5 each

(aggregating to Rs. 300.00 crores)

Fresh issue

26,98,412 equity shares of Rs. 5 each

(aggregating to Rs. 85.00 crores)

Offer for sale

68,24,933 equity shares of Rs.5 each

(aggregating to Rs. 215.00 crores)

A Tentative Timetable for the IPO:

The IPO opens on December 21, 2020, and closes on December 23, 2020. It is expected to list on January 01, 2021. Following is the tentative timetable for the IPO:

IPO Opening Date

December 21, 2020

IPO Closing Date

December 23, 2020

Basis of allotment date

December 29, 2020

Initiation of refunds

December 30, 2020

Issue of shares to Demat Account

December 31, 2020

IPO listing date

January 01, 2021

                                     

Objects of the issue:

Antony Waste Handling Cell Limited has expressed its intention to utilize the proceeds of the issue to finance the following projects:

  • Through investment in its subsidiary's AG Enrivo and/or ALESPL, the company will partly finance its PCMC WTE project.
  • It will utilize a portion of the issue proceeds to repay/prepay some of the outstanding debts of AG Enrivo, thereby reducing the consolidated borrowings of the holding and subsidiary companies.
  • There will also be utilization of issue proceeds for general corporate purposes.

What are the risks involved?

Primary Risks:

Following factors could affect the business of Antony Waste Handling Cell Limited adversely:

  • Heavy reliance on municipalities for business and revenue. Any significant budget cuts from municipalities could adversely affect the company.
  • The company's large portion of business comes from a small number of customers. Any reduction in essential customers can have negative effects.
  • The company operates in a limited geography. It may so happen that its geographical expansion projects might not turn out to be profitable as the current ones.
  • Companies in these businesses need to maintain higher working capital. If the company is not able to meet these requirements, it could face some severe problems.

Other risks:

  • The company has never executed a WTE project before. Therefore, investors cannot be assured about the success of such projects.
  • The company's business activities pose hazardous effects on employees' health, giving rise to increased costs to keep up employee morale. 

Final thoughts – Should you invest?

Investment in this IPO, just like any other investment, has its share of benefits as well as risks associated with it. It would be premature to make predictions about a company's business's success or failure, especially in these testing times. 

Investors are suggested to weigh both the pros and cons of the investment and make an informed decision. 

Happy investing!

About the Author: Shrey Salwan | 43 Post(s)

Shrey Salwan is an MBA student at FLAME University, Pune, majoring in Marketing. He is also pursuing CA and CS. He is a creative thinker, a grammar nazi, and social media enthusiast seeking to work in the dynamic world of social media and content marketing to transform technical and digital information and processes into influential stories. He has a knack for telling stories and does so through his quirky way of writing.

 

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