Antony Waste Handling Cell IPO to open on Wednesday: 10 key things to know

The initial public offering (IPO) of Antony Waste Handling Cell, the municipal solid waste management company, will be launched on March 4.

The issue will remain open for three days till March 6.

Equity shares are proposed to be listed on the BSE and NSE. Equirus Capital Private Limited is the sole book-running lead manager to the issue.

Here are 10 key things to know before subscribing to the public issue:

About the Issue

The IPO consists of a fresh issue of up to Rs 35 crore and an offer for sale of up to 57 lakh equity shares by selling shareholders.

Leeds (Mauritius) will sell up to 13,90,322 equity shares, Tonbridge (Mauritius) 20,85,502 shares, Cambridge (Mauritius) 7,69,917 shares and Guildford (Mauritius) 14,54,259 shares through offer for sale.

The company has fixed a price band at Rs 295-300 per share for the issue.

Bids can be made for a minimum lot of 50 equity shares and in multiples of 50 shares thereafter.

Issue Size

Antony Waste is aimed at raising Rs 203.15 crore - Rs 206 crore at lower and higher end of the price band of Rs 295-300 per share.

Issue Objective 

The company proposed to utilise the net fresh issue proceeds for reduction of the consolidated borrowings by infusing debt in subsidiary - AG Enviro Infra Projects for repayment / prepayment of a portion of their outstanding indebtedness, and general corporate purposes.

But it will not receive any proceeds from the offer for sale, which will go to selling shareholders.

Company Profile

Antony Waste is one of the top five players in the Indian municipal solid waste (MSW) management industry with an established track record of 17 years, providing full spectrum of MSW services which includes solid waste collection, transportation, processing and disposal services across the country, primarily catering to Indian municipalities.

The company is among the key players in the landfill construction and management sector with in-house expertise. It is also present in the emerging waste management segment in India which is MSW-based WTE.

The company primarily undertakes MSW collection and transportation (C&T) projects, MSW processing projects, and mechanised sweeping projects.

Its portfolio of 17 ongoing projects as on January 1, 2020, comprised eleven MSW C&T projects, two MSW processing (including WTE) project and four mechanised sweeping projects. All the 17 ongoing projects have started generating revenue.

The company is currently undertaking projects for the Municipal Corporation of Greater Mumbai (MCGM), the Navi Mumbai Municipal Corporation (NMMC), the Thane Municipal Corporation (TMC), Pimpri Chinchwad Municipal Corporation (PCMC), the North Delhi Municipal Corporation (NDMC), the Mangalore Municipal Corporation (MMC), New Okhla Industrial Development Authority (NOIDA), Nagpur Municipal Corporation (NMC) and the Greater Noida Industrial Development Authority (GNIDA). It is also undertaking a project for Jaypee International Sports.

As of January 1, 2020, Antony had a fleet of 1,089 vehicles. It procures the components of vehicles mostly from leading international suppliers, such as BUCHER Municipal AG and Compost System GmbH, who have been amongst preferred vendors for over four years.

Strengths

> It is a leading service provider in MSW management sector with end-to-end capabilities.

> It has an established track record of 17 years in executing solid waste projects.

> Having undertaken more than 25 projects as of January 1, 2020, of which 17 are ongoing, it has a demonstrated track record as a comprehensive service provider equipped with the resources to handle large-scale projects for municipalities and private players.

> It has a de-risked business model with a diverse portfolio of projects.

> It has a strong base of modern and well-maintained fleet of vehicles.

> It has experienced promoters and management team with strong domain expertise.

Strategies

> The company intends to capitalise on the growth opportunities in the MSW management sector by continued focus on bidding for MSW projects.

> It intends to continue with rational selection of projects and strategically expand geographical footprint.

> The company has been moving up the MSW value chain by increasing presence in the emerging waste management areas in India like WTE domain.

> It intends to continue to focus on improving project execution and operational efficiencies in order to maintain credentials as well as profit margins.

Financials

Antony Waste reported a 13.7 percent decline in profit at Rs 34.42 crore for the year ended March 2019 and 2.81 percent fall in FY18 profit at Rs 39.88 crore, while revenue from operations increased 2.7 percent to Rs 283.7 crore in FY19 and 0.13 percent to Rs 276.14 crore in FY18 respectively.

Operating numbers remained better than its topline and bottomline. Earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 9.2 percent to Rs 76.18 crore in FY19 and 7.6 percent to Rs 69.75 crore in FY18 with margin rising 160 bps in FY19 and 176 bps in FY18.

For the six-month period ended September 2019, the company reported profit at Rs 37.84 crore on revenue of Rs 218.62 crore.

Promoters

Jose Jacob Kallarakal, Shiju Jacob Kallarakal and Shiju Antony Kallarakkal are the promoters of the company, who hold 20.41 percent stake, 5.82 percent and 0.14 percent respectively as per draft prospectus.

Currently, the promoters together hold 51.10 percent stake in the company.

Other promoters are Antony Garages Private Limited and Antony Motors Private Limited which hold 7.82 percent stake each, while Tito Varghese Kallarakkal has 5.65 percent shareholding.

Investors

The rest 48.9 percent stake is held by investors including Guildford (Mauritius) - 22.83 percent stake, Cambridge (Mauritius) - 12.08 percent, Tonbridge (Mauritius) - 8.15 percent and Leeds (Mauritius) 5.43 percent.

Investors Leeds (Mauritius) and Tonbridge (Mauritius) are expected to almost exit the company by selling 13,90,322 equity shares and 20,85,502 shares through this public issue, while Cambridge (Mauritius) will sell 7,69,917 shares and Guildford (Mauritius) 14,54,259 shares through offer for sale.

Management

Jose Jacob Kallarakal is the Chairman and Managing Director of the company, while Shiju Jacob Kallarakal is the Executive Director and Chief Financial Officer.

Karthikeyan Muthuswamy is the Nominee Director, while Ajit Kumar Jain, Suneet K Maheshwari and Priya Balasubramanian are independent directors on the board.

Among others, Tarjindar Singh is the Chief Operating Officer of the company and is also an employee of subsidiary - AG Enviro Infra Projects Private Limited. Harshada Rane is the Company Secretary and Compliance Officer of the company.