Antony Waste Handling Cell Ltd IPO Analysis

Issue Opens: Dec 21, 2020; Issues closed: Dec 23, 2020; Price Band: 313-315

Issue Details Company Overview: Antony Waste Handling Cell Ltd

Face Values ₹5 incorporated in 2001. It is the second-largest player
Indian Municipal Solid Waste. It owns a fleet of 1,147
Price Band ₹313-315
vehicles, of which 969 were equipped with GPS
Issue Size ₹300Cr technology. Business activities of Antony Waste are
Bid Lot 47 Equity Share divided into 3 categories. Which are the following:
Issue Type 100% Book Building
1. MSW( Municipal Solid Waste Management)
C&T Project: The work of this project is
Company Management collecting bins from household and
communities.
Mr. Jose Jacob
2. MSM Processing project: The work of this
Kallarakal Chairman & MD
project is shorting and recycling the bins.
Mr. Shiju Jacob 3. Mechanized sweeping Project: Complete
Kallarakal CFO
cleaning operation is done in this project.

The objective of the Offer

1. The main objective of the fundraising to invest money in waste to energy project to its subsidiary AG
Enviro and ALESPL at Pimple Chinchwad in Maharashtra.
2. To reduce the consolidated borrowing of the company.

Straight of the Business

1. This company is the second-largest player In Indian Municipal Solid Waste.

2. Consistent track record of MSW project execution: Antony Waste company
have an Asia biggest processing plant at Kanjurmark, Mumbai which has
processed more than 7.63 million metric tons since its inception in 2010 till
November 15, 2020 ( Frost & Sullivan Report).
3. Diversification of the business: As on November 15, 2020, 18 projects are ongoing. Among 18
projects 14 for MSW( Municipal Solid Waste Management) C&T Project, 2 for MSM Processing
project and 4 for Mechanized sweeping Project.
4. Growth Opportunity in Municipal Solid Waste Management Sector: Government of India also
want to increase the participation of the private company to manage waste. According to the
Frost & Sullivan Report MSM management market is 5000cr (in 2020). Which is expected to go
9800cr in 2025.
Swachh Bharat Mission aims to achieve 100% collection, transportation, processing and disposal
of municipal waste across 4,041 cities/towns in the country (Frost & Sullivan Report). In the
present time, only 30-35% of municipal solid waste gets process in India.
 Financials of the Company

Rs Crore
Financial
Parameters FY18 FY19 FY20 H1FY21
Revenue   291 299 465 215
EBITDA   84 91 140 60
EBITDA
29 30 30 28
Margin  
PAT   40 35 62 29

The financial condition of this company is looking good. Compare to the 2018 data with 2020
revenue and profit after tax (PAT) has increased.

Key Risk:
1. Antony waste company depends upon the state and central government. If the budget
allocation of MSW project decline that will be the adverse impact for Antony waste
company.
2. This company is dealing with a limited number of customers.
3. Company is going to invest IPO amount in waste to energy project but the company don’t
have experience in this project.
4. The company have required high working capital for doing this business. If the company fail
to pay the debt amount that will be an adverse impact on the business.