the ₹The 300 crore initial public offering of Antony Waste Handling Cell was opened for subscription today and the issue will close on December 21. The issue comes in the wake of huge investor response to Burger King and Mrs Bectors Food this month. Antony Waste Handling Cell is a leading player in solid waste management services in the country.
Here are 10 things to know about the Antony Waste Handling Cell IPO:
1) The price band has been set at ₹313-315 per share for its initial public offering (IPO).
2) Offers can be made for a minimum lot of 47 equity shares and in multiples of 47 equity shares thereafter.
3) Antony Waste Handling Cell IPO Timeline: According to brokerages, the completion of the allotment is likely to occur on December 29, while the shares may be listed on January 1. Equity shares are proposed to be listed on the BSE and NSE.
4) Before the IPO, Antony Waste Handling Cell had raised ₹Rs 90 crore from anchor investors, including the Massachusetts Institute of Technology, Tata AIG General Insurance Company Ltd, SBI Equity Savings Fund and SBI Infrastructure Fund, among others. The company allocated 2,857,003 equity shares to ₹315 each to 10 anchor investors to raise ₹89.99 crore.
5) The IPO includes the new issue of shares by value ₹85 million rupees and an offer to sell of 68,24,993 shares of capital from existing shareholders. Tonbridge (Mauritius) Ltd, Leeds (Mauritius) Ltd, Cambridge (Mauritius) Ltd and Guildford (Mauritius) Ltd will offer shares through the offer to sell.
6) The promoter has a 51.1% stake in the company and, after the IPO, this will be reduced to 46.23%.
7) The proceeds of the new issuance will be used to partially finance the waste-to-energy project in Pimpri Chinchwad, Maharashtra, by investing in subsidiaries, reducing the company’s consolidated loans and general corporate purpose.
8) According to Choice Broking, Antony Waste reported a strong set of numbers during the 2017-2020 fiscal year. “During the period, it recorded a 17.8% CAGR increase in consolidated revenues to Rs. 4,505.1 million in fiscal year 2020. In fiscal years 2019 and 2020, the company started operations for the projects Noida, Dahisar-Borivali, Pimpri Chinchwad and Nagpur EBITDA increased by 24.7% CAGR to Rs. 1,255.6 million in fiscal 2020. The EBITDA margin expanded 437 basis points during the period to 27.9 % in fiscal year 2020. Due to the Covid-19 pandemic, the company’s performance was affected. Consolidated gross revenues decreased by 5.1% year-on-year in the first half of fiscal year 21. EBITDA and margins PAT contracted 538 bp and 324 bp, respectively, to stand at 25% and 9.5%, “said the brokerage.
9) Choice Broking has a “Subscribe With Caution” rating to the IPO. “There are publicly traded pairs that have similar trading operations like Antony Waste. We have taken global pairs for benchmarking. In the higher price band of Rs. 315 per share, the company’s stock is valued at a P multiple. / U of 26.1x at its updated EPS TTM of Rs. 12.1), which is discounted from its peer average of 32.7, “the broker said.
Risk factors include the economic slowdown, the covid-19 pandemic and the government’s lower allocation towards waste management and the risk of income concentration, the brokerage says.
10) Equirus Capital and IIFL Securities are the main managers of the issue. (With contributions from the agency)
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