Antony Waste Handling Cell will as soon as once more knock on the doors of Dalal Street investors for its initial public supplying (IPO) from today. At a price tag band of Rs 313-315 per share, Antony Waste Handling is searching to raise Rs 300 crore. Antony Waste Handling’s IPO is a mix of a fresh concern worth Rs 85 crore and an Offer for Sale (OFS) by current shareholders worth Rs 215 crore. Antony Waste Handling, earlier attempted to make its debut on the bourses in March just as the investors across the globe had been panicking and pulling dollars away from equities.
Anchor investors
Ahead of the IPO, Antony Waste Handling managed to raise Rs 90 crore from 10 anchor investors. Massachusetts Institute of Technology was the biggest investor amongst the 10, selecting up a 44.44% stake in the firm at the upper finish of the price tag band. Other anchor investors include things like, Tata AIG General Insurance, SBI Mutual Fund, and 238 Plan Associates.
Issue specifics
Investors can bid for the concern in a lot size of 47 shares, translating to an investment of Rs 14,805 per lot. Post concern, the promoter and promoter group will hold a 46.23% in the corporation, down from 51.10%. Public shareholding in the corporation will improve to 53.77% from 48.90% earlier. “At the higher price band of Rs. 315 per share, the company’s share is valued at a P/E multiple of 26.1x (to its restated TTM EPS of Rs. 12.1), which is at discount to the peer average of 32.7x,” stated brokerage and investigation firm Choice Broking. Although the comparison has been produced with worldwide peers and not with listed peers with equivalent companies in India as there had been none.
To Subscribe or not?
Analysts at Choice Broking have a ‘Subscribe with caution’ rating on the stock, contemplating the macros of the sector, demanded valuations and issues on the receivables. Valuing the small business at a P/E of 11.5x on FY20 basis, Keshav Lahoti Associate Equity Analyst, Angel Broking has a ‘Neutral’ rating on the concern. “For Antony Waste Handling Cell to grow its business it needs to win new contracts from municipalities. The top 5 clients contributed 81.8% of the revenue of the fiscal year 2020. So in the future if a company is not able to win an existing major contract again, it will impact the financials adversely,” he stated.
With just about 2 decades of encounter in the waste management sector, Antony Waste Handling has a robust execution track record. The corporation plans to use the net proceeds from the fresh concern for the portion-financing for PCMC WTE Project by means of investment in their subsidiaries, AG Enviro and/or ALESPL. The corporation is presently undertaking projects in Municipal Corporation of Greater Mumbai, Navi Mumbai, Thane, North Delhi, Noida, and Nagpur, amongst other folks.