Antony Waste Handling IPO

Apply 0
Avoid 0

The foothold in the solid waste management industry can be traced back to the incorporation of Antony Waste handling Company in 2001.

Starting with a simple business of collection and transportation of waste, they have come a long way in the field of solid waste management with adoption of latest technologies and innovations thereby transforming this business itself into a complex operation system with the use of technologies in garbage compaction, processing, use of transfer stations, management of sanitary engineered landfills.

Business of the Antony Waste Handling:

a) MSW collection and transportation (currently having 11 projects):

MSW C&T projects involve door to door collection of MSW from households, slums, commercial establishments and other bulk-waste generators (community bins) from a designated area through primary collection vehicles like compactors, dumper placers and tippers and transportation of these materials, to the processing facility, transfer station or a landfill disposal site.

b) Sweeping of city (currently having 4 projects):

Mechanized sweeping projects involve deploying of power sweeping machines, manpower, comprehensive maintenance, consumables, safe disposal of the waste and any other items required for completion of the cleaning operation of the designated areas.

c) Waste to Energy (currently 2 having projects):

MSW processing projects involve sorting and segregating the waste received from MSW C&T, followed by composting, recycling, shredding and compressing into RDF.

Highlights of Business:

(i)  One of the top five players in the Indian MSW management industry with an established track record of 17 years.

(ii)  It provides MSW services which include solid waste collection, transportation, processing, and disposal services across the country, primarily catering to Indian municipalities.

(iii) They are among the key players in landfill construction and management sector with in-house expertise for landfill construction along with its management.

(iv) They are currently undertaking projects for;

1. Municipal Corporation of Greater Mumbai (“MCGM”),
2. Navi Mumbai Municipal Corporation (“NMMC”),
3. Thane Municipal Corporation (“TMC”),
4. North Delhi Municipal Corporation (“NDMC”),
5. Ulhasnagar Municipal Corporation (“UMC”),
6. Mangalore Municipal Corporation (“MMC”) and
7. Greater Noida Industrial Development Authority (“GNIDA”).

Market Size or Opportunity available

Urbanization is a critical factor driving the MSW generation in the country. Changing lifestyle patterns, increasing disposable incomes, have paved the way for consumerism and, have also contributed to waste generation in urban India.

MSW generation is expected to grow at a CAGR of 5% (Fiscals 2018-23) from 55 Million TPA in Fiscal 2018 to reach 70 Million TPA by Fiscal 2023. The MSW Management market is estimated at INR 3000 Cr for Fiscal 2018 and is expected 106 to reach 6200 Cr by Fiscal 2023 at a CAGR of 15.6%.

Increasing participation of professional players in the collection and transportation services and development of scientific recycling and disposal methods for management of MSW is expected to be a key driver for the market.

(Source: Frost & Sullivan Report).

Objects of the Antony Waste Handling IPO:

a) An offer of Sale: The existing investors are selling 57 lakh shares in the IPO. b) Fresh Shares: The company is issuing shares worth Rs.35 Cr in the IPO.

Antony Waste Handling IPO Details:

Open Date: Mar 04 2020
Close Date: Mar 16 2020
Total Shares: 6866666
Face Value: ₹ 5 Per Equity Share
Issue Type: Book Buildling
Issue Size: 206 Cr.
Lot Size: 50 Shares
Issue Price: ₹ 295-300 Per Equity Share
Listing At: NSE,BSE
Listing Date: Mar 16 2020

Promoters And Management:

(i) Jose Jacob Kallarakal is the Chairman and Managing Director of the Company. He holds a Bachelor’s degree in Engineering (Mechanical) from Bharati Vidyapeeth’s College of Engineering, University of Mumbai. He is majorly responsible for the business development initiatives for the Company. He has completed the Authentic Leader Development Course from Harvard Business School, Boston. He was an invited speaker at the Waste Management Innovation Conference organised by the Ohio State University. He is one of the founders of the Company and has been associated with us since its inception. He has 19 years of experience in the field of waste management. (ii) Shiju Jacob Kallarakal is the Executive Director and the Chief Financial Officer of the Company. He holds a Bachelor’s degree in Engineering (Chemical) from Bharati Vidyapeeth’s College of Engineering, University of Mumbai. He overlooks the accounting and finance along with the legal functions of the Company. He is one of the founders of our Company and has been associated with us since its inception. He has 19 years of experience in the field of waste management.

Financials of Antony Waste Handling IPO:

( Fig. in Crs )
Year Revenue EBITDA OPM PAT NPM Shares F.V. EPS NW RONW
2016 239 74 31% 26.28 11% 1.4302 5 18 172 15%
2017 288 78 27% 38.766 13% 1.4302 5 27 131 30%
2018 289 84 29% 38.48 15% 1.4302 5 29 185 21%
2019 298 89 30% 31.41 11% 1.4302 5 21 235 13%
1. Top-line is almost flat in the last 3 years. It is in the range of 290-298 cr. 2. Bottom-line is on a declining trend in the last 3 years. 3. As on September 30, 2019, the total borrowings of the Company on a consolidated basis were ₹ 189 Cr. 4. Current ratio = Current Asset/Current Liability= 0.71(anything below 1.5 does not give confidence). 5. Mcap = 767 Cr. 6. Average EPS of 3 years = 14 7. P/E=21( High ) 8. Mcap/Sales= 2.57 ( High )

Comparison With Peers:

THE Company does not have any listed industry peers in India.

Recommendation on Antony Waste Handling IPO:

Review and Recommendation of InvestorZone is: 3/10. Pros: 1) A leading service provider in the MSW management sector with end-to-end capabilities. 2) Long term contracts with municipalities and Government agencies. 3) Strong track record of project execution. 4) A de-risked business model with a diverse portfolio of projects. Cons: 1. The business has not shown any growth in the last 3 years, both in bottom-line and top-line. The asking valuation is on the higher side. 2. The company’s business model as such, has to depend on municipal corporations, the government agencies, and we all know how government tendering works. 3. The business requires high working capital. The company needs to employ a huge number of workers for cleaning work and it also requires a large number of the vehicle to carry out and expansion of the business. 4. A lot of litigation are going on with various municipal corporations for not giving timely payments, some projects are being stopped due to disputes, sometimes the land given for dumping was not as per agreed upon, the municipal corporations put up an unnecessary penalty, deductions, etc.

Lead Manager of Antony Waste Handling IPO:

  1. Equirus Capital Private Limited

Registrar of Antony Waste Handling IPO:

  1. Link Intime India Private Limited

Discussion on Antony Waste Handling IPO:

    The date has been extended till 16th March 2020. Investors who have invested in SBI Card IPO, till that time the money will be released for non-allottees.

    ADMIN’S RECOMMENDATIONS AND OTHERS IMPORTANT INFORMATION YET NOT UPDATE.
    THIS SITE DOES’T HELPFUL FOR ME

      It is updated. Please check. It is an avoid.

    Dear Market wizard sir
    What is your view for this IPO
    Should We Subscribe for listing gain..

    ANTONY WASTE
    OPEN 4 MARCH
    CLOSE 6 MARCH
    PB 295-300
    LOT 50 SHARES

    Dear Market wizard sir
    What is your view for this IPO
    Should We Subscribe for listing gain..

    Business takeaways of Antony.

    1. One of the top player in Indian Municipal Solid Waste Management Industry, with 17 years of experience.

    2. Do business in three segment.

    a) MSW collection and transportation.( Currently having 8 projects)

    b) Sweeping of city( currently having 5 projects)

    c) Waste to Energy( one project)

    They get projects for certain duration, say 2 years, 5 years, 10 years and so on.

    3. 65-70% of solid waste management is done by municipal corporation itself. And rest 30-35% done by company like Antony. So in future with Swachh Bharat Abhiyan and Smart city, the private players will take big pie.

    4. Till date they have undertaken 25 projects , out of which 14 are currently running, as on 30.11.2018.

    5. They have around 515 vehicles to manage MSW, as on 30.11.2018.

    6. Problem is many of their projects out of 14 mentioned as on 30.11.2018, are expiring in 2019, 2020.

    So need to check rhp, to know their current projects.

    Need to verify how many such municipal projects they are 🏃, as on today.

    They should have surely finished this earlier…with the dates clashing with sbi cards ipo this might even not get fully subscribed…
    What’s your views?