Things You should know about Antony Waste Handling Cell IPO.

IPO News 28 December 2020 2:05:PM

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Antony Waste Handling Cell is one of the best players with a proven track record of over 19 years in the Indian MSW management industry. Antony Waste Handling Ltd. (AWML) is one of the best players in the MSW management industry, offering a broad range of MSW services across the country, mainly catering to Indian municipalities, including solid waste collection, transportation, processing, and disposal services. The IPO of Antony Waste Handling Cell, the second-largest player in the Indian municipal solid waste management market, will open on 21 December. This Issue will be concluded on the third day of the offer, i.e. 23rd December. It is suggested that equity shares be listed on the BSE and NSE. The book that leads managers to the problem is Equirus Capital and IIFL Securities. 

Key business activities of Antony Waste Handling:- 

  • 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
  • MSW processing projects involve sorting and segregating the waste received from MSW C&T, followed by composting, recycling, shredding, and compressing into RDF.
  • Mechanized sweeping projects which involve deploying of power sweeping machines, manpower, comprehensive maintenance, consumables, safe disposal of the waste

Public Offer:-

The IPO involves a new issue of Rs 85 crore worth of shares and an offer by current shareholders to sell 68,24,933 shares of equity.
Leeds (Mauritius) will sell 13,90,330 equity shares, 20,85,510 equity shares in Tonbridge (Mauritius), 11,58,667 equity shares in Cambridge (Mauritius) and 11,58,667 equity shares in Guildford (Mauritius) via the bid for sale.

  • Price band:- The company has a fixed price band of Rs 313-315 per share for its public issue.
  • Antony Waste Handling Cell plans to increase the lower price band to Rs 298.62 crore and the upper price band to Rs 299.98 crore. On December 18, the company garnered Rs 90 crore from anchor investors. The bid size has therefore been reduced to Rs 66,66,343 equity shares.

Valuation & Recommendation:

Usually, MSW projects are awarded following a competitive bidding procedure and fulfillment of the technical and financial pre-qualification requirements prescribed. The MSWM market has approximately 25 participants providing different services. Many businesses with infrastructure and environmental services are present in this sector. The award of contracts also depends on the grants and the budget given to their municipalities by the States.

Although potential growth may come from expanding into more geographies and projects in Waste To Energy, the contract wins have been unstable in the past. While current contracts with an average term of 7-10 years provide some comfort in the future revenues, given the uncertainty of contract wins in the past and increasing competitive strength, we will remain cautious.

Main Details of Antony Waste Handling Cell IPO:

It is suggested that the Antony Waste Handling Cell Ltd IPO be listed on the Bombay Stock Exchange (BSE) as well as on the National Stock Exchange (NSE). In theory, the firm has already obtained approvals for the same from both stock exchanges.

  • IPO Date: 21st DEC 2020 to 23rd DEC 2020

  • Issue Type: Book Built Issue

  •  Issue Size: 9,523,345 Equity Shares of Rs.5 totaling up to Rs.300 Crore

  • Fresh Issue: 2,698,412 Equity Shares of Rs.5 totaling up to Rs.85 Crore

  • Offer for Sale: 6,824,933 Equity Shares of Rs.5 totaling up to Rs.215 Crore

  • Face ValueRs.5 per equity share

  • IPO Price: Rs.313 to Rs.315 per equity share

  • Market Lot: 47 Shares

  • Min Order Quantity: 47 Shares

Closing update on IPO

Antony Waste Handling Cell's Rs 300 crore initial public offer (IPO) was subscribed approximately 15 times on Day 3, as it hit the stock market for the second time in 2020.

The company had offered its Rs 206 crore issue in the price band of Rs 295-300 at its first attempt in March. However, despite extending the IPO deadline, due to market instability and the uncertainty regarding increasing cases of Covid-19 globally at the beginning of the pandemic, it did not produce enough bids to sail through. But the company has now come out with a Rs 300 crore issue in the price band of Rs 313-Rs 315 per share of equity in its recent issue which got closed on December 23.

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