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Antony Waste Handling Cell IPO Review and Analysis in Detail


Basis Structure of Antony Waste Handling Cell IPO

Antony Waste Handling Cell is set to again come up with its IPO in the month of December. It will be open for subscription from December 21-23.

The company had come up with the IPO earlier in March but was cancelled due to tepid response because of the ongoing market situation due to Covid-19. The issue was only subscribed 0.5 times.

This IPO is of the book-building nature, which means the shares are offered in a price band. The other kind of offering is called fixed price offering, and this is characterized by a fixed price for the shares that are on offer. The Antony Waste Handling Cell IPO will comprise of a fresh issue as well as an offer for sale.

The fresh issue segment will contain 26.98 lakh shares. This segment contains shares which are being newly issued by Antony Waste Handling Cell.  The company intends to raise Rs. 215 crores through this issue. This amount will be utilized to finance the PCMC WTE project through investment in subsidiaries, to pay off the company’s consolidated borrowings by infusing debt in subsidiary and to meet general corporate expenses.

The offer for sale segment will contain 68.24 lakh shares. This section contains those shares which belong to other shareholders. These shares are not being issued by the company – the existing shareholders are selling part of their stake. The amount raised through the sale of these shares will be credited directly to the shareholders.

Antony Waste’s expected market capitalization after the IPO will be in the region of Rs. 300 crores.

The table below lists out all the details about the Antony Waste Management Cell IPO. Details like Antony Waste Management Cell IPO date, Antony Waste Handling Cell share price and more have been summarised.

IPO details

After the IPO, the Antony Waste Handling Cell shares will be listed on both NSE and BSE.

About the Company

Incorporated in 2001, Antony Waste Handling Cell Limited is one of the leaders in India's Municipal Solid Waste Management (MSW) industry.

The business is offering a full spectrum of MSW services i.e., solid waste collection, processing, transportation, and its disposal across the country. It also plays a leading position in the landfill construction and management sector.

Antony Waste Handling Cell has undertaken more than 25 projects as of August 2020, out of which 17 are ongoing. They also have one upcoming project.

They have only one plant all over India in Mumbai. This plant has the capacity to handle 5000 tons of waste per day.


Antony Waste Handling Cell works on a B2B model.

The company’s major customers are government bodies (Municipal Corporation) only. Apart from Municipal Corporation company had their projects with only 2 Non-government Company.

The company does not have any foreign presence.

Products & Services

The company works majorly on Municipal Solid Waste (MSW) management by collection, transporting, segregation, recycling and disposal of it.

Other services include deploying power sweeping machines, maintenance, consumables, safe waste disposal, and others to complete cleaning operations.

Antony Waste Handling Cell also has several subsidiaries all working under the solid waste management, mechanized and non-mechanized sweeping and converting waste to energy.

Promoter Shareholding Pattern

The table below lists out the shareholding details of the company prior to the Antony Waste Handling Cell IPO.


Financial Overview of Antony Waste Handling Cell IPO

The table below summarizes the key financial figures of Antony Waste Handling Cell from 2017 to 2020. The figures below are in Rs. Crores.

Financial Overview

As we can see, the revenue earned by Antony Waste Management Cell has increased consistently over the years. Between 2018 and 2020, it grew at a CAGR of 16.96%.


The profit earned has also shown a significant rise. It did fall by 13.04% in 2019. However, in 2020, it increased by 78.97%.

One worrisome fact about the company is that the long-term debt burden of the company has been increasing over the years. Between 2018 and 2020, it has grown at a CAGR of 11.2%.

Long term debt

Industry Analysis

The MSW Management market is estimated at Rs. 5,000 crores for FY2020 and is expected to reach Rs. 9,800 crores by FY2025 at a CAGR of 14.4%.

MSW Market Growth

MSW generation is expected to grow at a CAGR of 8.9% (Fiscals 2020-25) to reach 11.5 crores TPA by Fiscal 2025. This growth is backed by the increase in population and the government initiative to increase the proportion of waste processing.

MSW Generation

As per the report from Frost & Sullivan, only 30-35% of municipal solid waste generated in India gets processed. Swachh Bharat Mission aims to achieve 100% collection, transportation, processing and disposal of municipal waste across 4,041 cities/towns in the country.

Antony Waste Management Cell is among the top 5 market players in India. As of August 31 2020, the company had a fleet of 1,147 vehicles.

Ramky Enviro is the top player in the Indian MSW management market followed by Antony Waste in the second position. Metrro Waste Handling Pvt. Ltd., BVG India Ltd., Global Waste Management Pvt. Ltd. and A2Z Green Waste Management Ltd. are among other top companies in the Indian MSW management market.

Almost all players offer collection and transportation services, while a couple of them offer only treatment and disposal services.

The collection and transportation sector first opened up for private sectors in India a couple of decades ago. Since then, this sector has seen technological improvements such as mechanized primary waste collection & sweeping, GPS vehicle and bin tracking system etc.

Ramky Enviro and Antony Waste are among select few companies who have led this sector.

There are very few companies with expertise in landfill construction and management. Antony Waste is among the key players in this sector with in-house expertise for landfill construction along with its management.

Peer Comparison

Ramky Enviro, BVG India Ltd, Metrro Waste handling Pvt Ltd, A2Z Green waste management Ltd are the competitors of Antony Waste Management Cell. None of them are listed. So, the comparison of valuation is difficult.

During the year FY 2018-19, Ramky Enviro engineers handled approximately 13,500 TPD of municipal solid waste across 21 cities and has global footprints in the Middle East.

BVG India handles 3000 tonnes of waste per day. It stands 3rd in terms of the market share of solid waste management. It also offers many other facilities like facility management and renewable energy.

In comparison, Antony Waste Handling Cell handled 4,200 TPD MSW during the same year across 8-10 cities with Mumbai, Delhi NCR and Pimpri-Chinchwad being the major city of operations.

Strengths of Antony Waste Handling Cell IPO

Antony Waste Management Cell has a strong foothold in the waste collection and transportation market. Its presence spans different regions of the country, and the promoter team has experience of over 18 years.

The company is the leading market player in landfill construction and management which is required for the disposal of solid waste management.

Another competitive advantage for Antony Waste Management Cell is the fact that it has long-term contracts with Indian municipalities and government agencies. The risk of default associated with these contracts is, therefore, practically zero.

Weaknesses of Antony Waste Handling Cell IPO

What is perceived as a strength can also become a weakness. Antony Waste Management Cell is largely dependent on municipal authorities for operational revenue. In 2020, over 80% of the total revenue comes from the top 5 clients.

Because of the nature of its business model, Antony Waste Management Cell’s potential clients are restricted to government bodies. During emergencies like Covid-19, if the government reduces its budget towards waste management, it would create a major risk.

Apart from that, the market for waste management is highly competitive. There are many other companies whose operations are of a similar nature. This poses a huge risk to Antony’s business operations and its future growth.

Valuation of Antony Waste Handling Cell IPO

As there are no listed peers of waste management in India, comparing the valuations are quite difficult. We will, therefore, attempt a different method of valuation. This formula has been given by the father of value investing, Benjamin Graham himself.

FY20 Profit = 62.07
Growth Rate = 7% (CAGR 3 years)
Value = 62.07 * (8.5 + (2*7))
= 62.07 * 22.5
= 1396.57 crore

According to the Intelligent Investor formula, the value derived above is the intrinsic value of the company on the basis of the earnings growth. If we consider a 10% margin of safety, the value comes out as follows.

By deduction of the margin of safety = 1396.57 – 10%
= 1256.91 crore

As per the basis structure of the IPO, the market capitalisation of the company is Rs. 300 crores. Therefore, it is safe to conclude that the Antony Waste Handling Cell IPO is deeply undervalued.

Frequently Asked Questions

1. When Antony Waste IPO will open?

The Antony Waste IPO will open for subscription on 21 December. The issue will remain open till 23 December.

2. What is the lot size of Antony Waste IPO?

The Antony Waste shares will be available in lots of 47. This means you have to bid on a minimum of 47 shares. If you want to bid on more than 47 shares, you will have to do so in multiples of 47 – that is, 2 lots for 94 shares, 3 lots for 141 shares and so on.

3. How to apply for Antony Waste IPO?

There are two ways to apply for an IPO. You can apply either through UPI or through ASBA (net-banking). In order to apply, simply log on to your brokerage house’s website, select the IPO for which you want to apply, select the number of lots that you want to bid for, and submit your bid.

4. When is Antony Waste IPO listing date?

The Antony Waste shares will be listed on NSE and BSE on January 1.

5. How to apply in Antony Waste IPO through Zerodha?

Simply log onto the Zerodha website or the Zerodha mobile app. Select the Antony Waste IPO from the IPO menu. Select the number of lots and submit your bid for the Antony Waste IPO.

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