Antony Waste IPO's grey market premium slide down

The three day issue closes today, on 23rd December 2020
Price range of the offer has been fixed at ₹313 - 315 per share.

Antony Waste Handling Cell initial public offering (IPO) was subscribed 3.85 times on the second day of its subscription on Tuesday. The company has joined the likes of Burger King India and Mrs.Bectors Food Specialties' to have received oversubscription in a few hours of opening for subscription. However, the solid waste management company fails to impress players in the grey market. The Grey Market Premium of Antony Waste IPO has slipped from around ₹160 two days ago to the range between ₹26 and 30 today. The demand has been weak and it is going down . The trend seems to be negative.

By the end of second day, the IPO raised about ₹300 crore, received bids for 2,56,65,478 shares against 66,66,342 shares on offer, as per NSE data.

10 key things

Public Offer

The IPO comprises a fresh issue of Rs 85 crore worth of shares and an offer for sale of 68,24,933 equity shares by existing shareholders.

Leeds (Mauritius) will sell 13,90,330 equity shares, Tonbridge (Mauritius) 20,85,510 equity shares, Cambridge (Mauritius) 11,58,667 equity shares; and Guildford (Mauritius) 11,58,667 equity shares through offer for sale.

Investor can put minimum bid of 47 equity shares and in multiples of 47 equity shares thereafter.

Price Band

The company has fixed price band of Rs 313-315 per share for its public issue.

Fund Raising

Antony Waste Handling Cell aims to raise Rs 298.62 crore at lower price band and Rs 299.98 crore at the upper price band.

The company garnered Rs 90 crore from anchor investors on December 18. Hence, the offer size has been reduced to Rs 66,66,343 equity shares.

Objectives of the Issue

The company proposed to utilise its fresh issue proceeds towards part-financing for waste-to-energy project at Pimpri Chinchwad through investment in its subsidiaries, AG Enviro and/or ALESPL; reduction of consolidated borrowings; and general corporate purposes.

The offer for sale money will go to selling shareholders.

Company Profile

Antony Waste Handling Cell is one of the top five players in the Indian MSW management industry with an established track record of more than 19 years. It provides full spectrum of municipal solid waste (MSW) services which includes solid waste collection, transportation, processing and disposal services across the country, primarily catering to Indian municipalities.

It is among the key players in landfill construction and management sector with in-house expertise for construction and management of landfills in a scientific manner. It is also present in the emerging waste management areas in India such as MSW based WTE.

The company has undertaken more than 25 projects, of which 18 are ongoing, as of November 15, 2020, including projects for the Municipal Corporation of Greater Mumbai, the Navi Mumbai Municipal Corporation, the Thane Municipal Corporation, Pimpri Chinchwad Municipal Corporation, the North Delhi Municipal Corporation, the Mangaluru Municipal Corporation, New Okhla Industrial Development Authority, Nagpur Municipal Corporation and the Greater Noida Industrial Development Authority.

The portfolio of 18 ongoing projects comprises 12 MSW C&T (collection and transportation) projects, two MSW processing project and four mechanised sweeping projects.

All these 18 ongoing projects have started generating revenue, the company said in its RHP, adding as of November 15 this year, it had a fleet of 1,147 vehicles of which 969 are equipped with GPS technology.

The company is a part of the 'Antony' group which has diversified business interests, including in the automotive body-building and ancillary industries.


a) A leading service provider in MSW management sector with end-to-end capabilities;

b) Strong track record of project execution;

c) Diversified business model;

d) Access to technology backed vehicles and equipment enables company to manage operations efficiently;

e) Experienced promoters and management team with strong domain expertise.


a) Capitalise on the growth opportunities in the MSW management sector by continued focus on bidding for MSW projects;

b) Continue with rational selection of projects and strategically expand geographical footprint;

c) Moving up the MSW value chain by diversifying into the emerging waste management areas;

d) Continue to focus on enhancing operational efficiency.


Antony Waste Handling Cell reported a 79 percent year-on-year growth in consolidated profit at Rs 62.07 crore in FY20 on revenue of Rs 450.51 crore that grew by 58.8 percent YoY. Profit in FY19 declined 13 percent to Rs 34.68 and revenue increased by just 2.7 percent to Rs 283.69 crore in same year compared to FY18.

In the first half of FY21, company posted profit at Rs 29.05 crore on revenue of Rs 207.39 crore.

"Considering the P/E valuation on the upper end of the price band of Rs 315, the stock is priced at pre issue P/E of 12.35x on its actual annualised FY20 EPS of Rs 25.52. Post issue, the stock is priced at a P/E of 13.65x on its EPS of Rs 23.08. Looking at the P/B ratio at Rs 315 the stock is priced at P/B ratio of 2.81x on the pre issue book value of Rs 112 and on the post issue book value of Rs 141.64 the P/B comes out to 2.22x," research house SMC said in its note.

Promoters and Shareholding

Jose Jacob Kallarakal, Shiju Jacob Kallarakal and Shiju Antony Kallarakkal are the promoters of the company.

Jose Jacob Kallarakal held 20.41 percent stake in the company, Shiju Jacob Kallarakal 5.82 percent and Shiju Antony Kallarakkal 0.14 percent shareholding as of December 14, 2020, while promoter group including family members held 24.73 percent stake in the company.

Among public shareholders, Guildford (Mauritius) held the maximum stake of 22.83 percent, Cambridge (Mauritius) 12.08 percent, Tonbridge (Mauritius) 8.15 percent and Leeds (Mauritius) 5.43 percent.


Jose Jacob Kallarakal is the Chairman and Managing Director of the company. He is one of the founders of the company and has 19 years of experience in the field of waste management.

Shiju Jacob Kallarakal is the Executive Director and the Chief Financial Officer of the company. He is also one of the founders of the company and has 19 years of experience in the field of waste management.

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

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