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Last Updated : Mar 04, 2020 09:03 PM IST | Source: Moneycontrol.com

Antony Waste Handling Cell IPO subscribed 9% on Day 1

The Rs 203-crore public issue has received bids for 4.29 lakh equity shares against an IPO size of 48.20 lakh equity shares after excluding anchor investors' portion.

 
 
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The initial public offering of Antony Waste Handling Cell was subscribed 9.25 percent on March 4, the first day of bidding.

The Rs 203-crore public issue has received bids for 4.29 lakh equity shares against an IPO size of 48.20 lakh equity shares after excluding anchor investors' portion, the exchanges data showed.

The portion set aside for non-institutional investors (or HNIs) saw 12.85 percent subscription and retail 12.43 percent, while that of qualified institutional buyers did not get a single bid.

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The IPO consists of a fresh issue of Rs 35 crore and offer for sale of 57 lakh shares by investors - Leeds (Mauritius), Tonbridge (Mauritius), Cambridge (Mauritius) and Guildford (Mauritius).

The company intends to utilise the net fresh issue proceeds for reduction of the consolidated borrowings by infusing debt in subsidiary - AG Enviro Infra Projects  - for repayment / prepayment of a portion of their outstanding indebtedness, and general corporate purposes.

Incorporated in 2001, Antony Waste Handling Cell (AWHCL) is engaged in offering municipal solid waste (MSW) management services. The service range of the company includes solid waste collection, transportation, processing and disposal services to Indian municipalities.

Also read - Antony Waste Handling Cell IPO to open on Wednesday: 10 key things to know

It has in-house expertise in landfill construction and management. The company primarily undertakes MSW collection and transportation (C&T) projects, MSW processing projects, and mechanised sweeping projects.

Its portfolio of 17 ongoing projects as on January 1, 2020, comprised eleven MSW C&T projects, two MSW processing (including WTE) project and four mechanised sweeping projects. All the 17 ongoing projects have started generating revenue.

Antony Waste Handling IPO opens: Should you subscribe?

"AWHCL was unable to perform on topline and bottomline fronts over FY2017-19, and hence we believe that concerns regarding the company's financials exist. Further, the business involves working capital and

receivables risk from municipalities, which restricts the future growth opportunities," Angel Broking said.

Despite the lower pre-issue P/E at 10.1x 1HFY2020 annualised earnings (at the upper end of the issue price band), the brokerage recommended a neutral rating on the issue.

The company's revenue grew at a CAGR of nearly 8 percent (FY2016-19) and profit increased at 6 percent CAGR over the same period. The company has already generated revenue of Rs 219 crore during the first half of FY20, which increased by 54 percent on account of newly received projects.

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First Published on Mar 4, 2020 09:03 pm
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