Antony Waste Handling Cell Limited has decided to take the public route and it will hit the market on 21st December 2020. Probably, this should be the last Initial Public Offer (IPO) of 2020. Let’s dig deeper and understand what it is all about.

About the Company

Antony Waste Handling Cell Limited was incorporated in 2001. They are one of the top five companies in the Indian municipal solid waste management industry. Jose Jacob Kallarakal, one of the founders, is the current Chairman and Managing Director of the company. They offer a range of services like solid waste collection, transportation, landfill construction, processing and disposal services nationwide. Currently, Antony Waste Handling Cell has 23 ongoing projects and 1,089 vehicles.

These are 17 MSW C&T (Municipal Solid Waste Collection & Transportation), 2 MSW processing and 4 mechanized sweeping projects. MSW C&T projects include walking door-to-door and collecting waste from households, commercial establishments and other community bins. MSW processing projects include sorting and segregation waste which is collected through MSW C&T. The segregated waste is further processed by composting, shredding, recycling and turned into refuse-derived fuel.

Antony Waste serves some of India’s biggest municipal corporations like Municipal Corporation of Delhi, Kalyan-Dombivali Municipal Corporation and Jaypee International Sports. Many of their projects are running already at Navi Mumbai Municipal Corporation (NMMC), Thane Municipal Corporation (TMC), Greater Noida Industrial Development Authority (GNIDA) and more.

About the IPO

IPO DateDec 21, 2020 – Dec 23, 2020
Issue TypeBook Built Issue IPO
Face ValueRs 5 per equity share
IPO PriceRs 313 to Rs 315 per equity share
Market Lot 47 Shares
Offer for Sale Up to Rs 215 crore
Fresh IssueUp to Rs 85 crore
Issue SizeUp to Rs 300 crore
Listing AtNSE, BSE

For the second time, Antony Waste Handling Cell will be hitting the market this year. Earlier in March, they came up with a Rs 206 crore issue in the price band of Rs 295-300. But, due to shutdown and dramatic fall in the market due to Covid-19, they failed to generate enough bids. 

This time, the company has come out with a larger issue size and a higher price band. The size of the issue is now Rs 300 crore and the new price band is Rs 313-Rs 315 per share. The issue will open on 21st December and close on 23rd December. The minimum and maximum lot of this IPO is of 47 shares and 611 shares respectively. That means an investor who is looking to invest in this IPO has to at least pay Rs 14,805. The maximum a single investor can invest is Rs 1,92,465, but this is likely not going to happen as the IPO will be oversubscribed. 

This IPO consists of two parts: a fresh issue and an offer for sale (OFS). Tonbridge (Mauritius), Leeds (Mauritius), Cambridge (Mauritius), and Guildford (Mauritius) are selling some of their equity shares. The company has already raised Rs 89.99 crore at a price band of Rs 315 ahead of its IPO. Massachusetts Institute of Technology was the top anchor investor winning 44% of the total anchor allotments. 

Antony Waste Handling Cell has three reasons behind taking going public. Firstly, some parts of the proceeds will be used to finance its waste-to-energy project at Pimpri Chinchwad in Maharashtra. This will be done by investing money in its subsidiaries AG Enviro and ALESPL. The second objective is to infuse debt in AG Enviro to reduce consolidated borrowings of the company. Lastly, some of the proceeds will be used to meet general corporate purposes.

Financial Overview of the Company

30 September 202031 March 202031 March 201931 March 2018
Total Assets707.56672.10512.63428.07
Total Income215.10464.61298.51290.77
Profit after Tax29.0562.0734.6839.88
Values in Rs crores

The company had an amazing FY20 as their profits rose by a massive 79% year-on-year (YoY) to Rs 62 crore. Their top-line (revenue) also showed a jump of 58% from Rs 298 crore to Rs 464 crore. Even after the lockdown due to coronavirus, Antony Waste has accumulated almost Rs 30 crore of profits in the first half of this financial year. With this trend, we can see them surpassing last year’s profits number as well. Thus, the company has done fairly well to manage its bottom line.

The biggest strength is their desire to use the latest technology tools, vehicles, and equipment. They hold a diversified project portfolio, thus, not depending only on one type of projects. A nation-wide reach also helps them to spread their wings and operate in several states. Their consistent track record of MSW projects execution has earned them a leader tag in the MSW management industry. Another big advantage? They don’t have any listed competitors. Thus, investors might look at this IPO as another opportunity to gain.

Risk Factors

  • As you can already interpret from the company’s client list, they are very much dependent on the Municipal Corporations for projects. A major chunk of the revenue is generated from them. These municipalities are themselves dependent on budgets which are allocated by the state or central governments. Any reduction in this budget can massively impact Antony Waste’s business.
  • Even if the projects are rolled out by these municipal corporations, there is no guarantee that Antony Waste will get them. If any other waste handling company satisfies the prequalification requirements of the tender, the project will be handed to that company.
  • Antony Waste Handling Cell requires a high amount of working capital. If they fail to generate money quickly from their projects, their business will be impacted heavily. Over the past three years, their trade receivables have increased consistently. In FY18, they had a trade receivable of Rs 88 crore. This stood at Rs 113 crore in FY20. This is not a good sign for any company which has huge working capital requirements. (Trade receivable is the amount owed to Antony Waste by its customers).


As we mentioned before, Antony Waste Handling Cell Limited is the only entity belonging from MSW industry which will be listed. Thus, investors will be keenly looking at the performance of this IPO. We cannot imagine our lives without the operations of these types of companies. They help us to live in a cleaner society. MSW industry is expected to grow at a CAGR of 5%. In FY18, the MSW market was estimated to worth around Rs 3,000 crore. The company believes that the market will be worth Rs 6,200 crore by the end of FY23. The company is already a market leader. They also depend on recent technologies to carry out their daily operations which aids them in cutting their costs. Can we expect the last IPO of 2020 to be another hit?

With a lot of negative global cues running around, foreign institutions might not fully subscribe to the IPO, and it may become a flop. My opinion is to again wait to see how institutions react to this IPO.

What are your thoughts on the company? Do let us know by commenting below. You can find the company’s red herring prospectus here