IPO Details
Here is snap shot of the IPO
- Issue Opening – March 4th
- Issue Closing – March 6th
- Price Band – INR 295 to INR 300
Purpose of the IPO (Initial Public Offering)
- Reduction of the consolidated borrowings of the Company by infusing debt in the subsidiary AG Enviro Infra Projects private limited for repayment of portion of outstanding indebtedness.
- General Corporate purposes
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Business Overview
Antony waste handling is part of Antony Group as per the website. It is one of the top five players in Indian Municipal Solid Waste (MSW) management.
The Company is based in Mumbai. It operates in all cycles of Waste management like Construction & management of landfills, recycling, composting, waste to energy, transportation, segregation and door to door collection.
As of this writing Company is working with Municipalities of Greater Mumbai, Navi Mumbai, Pimpri Chinchwad, Mangalore, Nagpur, Greater Noida and Delhi.
The Company also operates one of the largest single location waster processing plants in Asia. It is also operating 17 ongoing projects as of this writings. Below are project duration of 17 projects currently executed by the Company
- 11 projects of 0 to 5 year Project Life
- 4 projects of 0 to 10 year project life
- 2 project of 0 to 15 year project life
The nature of projects is of longer duration. It has good amount of projects to execute but out of 17 projects majority are of less than 6 years.
Financial Snapshot
Below is the Financial Snapshot of the Company.
- Year 2019
- Total Revenue 2836 (excluding other incomes)
- Total Expenses 2508
- EBITDA 910
- Profit before tax 476
- Net Profit 344
Below are some useful information about it
- Net Profit Margin % (NPM) 11.53%
- EBITDA Margin % 30.49%
IPO Subscription Status
I will update this section on the last day of the subscription as per the trading plan mentioned in the Make Money with IPO Analysis article. This section will be updated at that time.
- QIB – 0.89 times
- NII – 0.24 times
- RII – 0.32 times
- Employee – times
- Others – times
- Total Subscription is 0.46 times
Below is meaning of the Key terms used above
- QIB is (Institutes or Mutual Funds like HDFC AMC etc)
- NII is (People bidding for more than 2 lakhs in IPO application)
- RII is (People bidding for less than 2 lakhs)
- Employee and Others are Reserved Quota Investors.
My Opinion
The Company operates in Municipal Waste Management. This is one of the consistent and growth sector in our Country. The reason is that with increasing urbanization more people are living in cities.
Waste management is a growing concern for all Municipalities all around India. The collection and disposal of wastes are important. As of now Company mainly operates in Western India and Northern India. It operates in two or three major cities of India.
Though there are some pain points in my opinion. I do not like Companies with debt. Debt heavy companies are more prone to crumble if business growth slows down or revenue is impacted for sometime due to economic conditions.
- Non Current Liability Borrowings 1185 million INR
- Current Liability Borrowings 310 million INR
- Reserves and Surplus of 678 million INR
It does have negative cash flows in past and operates in highly competitive segment. As of now I am not considering to apply in the IPO for long term investment perspective.
Looking at the luke warm response to the IPO and market condition I would not suggest investing in this IPO.