Fun fact: India’s municipal solid waste management (MSW) market is estimated at ₹5,000 crore for FY20. It is estimated to grow at a CAGR of 14.4% to ₹9,800 crore by FY25. It seems like our mothers were right; cleaning up pays.
The increasing participation of private players in the collection, transportation, recycling, and disposing of municipal waste has led to strong growth in this segment. With that background, let’s talk about the third IPO of this month: Antony Waste Handling Cell (AWHC).
Incorporated in 2001, AWHC’s business began with the collection and transportation of municipal waste. The company later started garbage compaction and processing and management of sanitary engineered landfills. It’s now set to list on both the NSE and the BSE, and here are the details of its initial public offer.
Price band: ₹313-315 per equity share
Lot size: 47 shares
Issue size: ₹300 crore
Issue opens on: 21 December 2020
Issue closes on: 23 December 2020
Expected basis of allotment date: 29 December 2020
Expected initiation of refunds: 30 December 2020
Expected credit of shares to Demat account: 31 December 2020
Expected listing date: 1 January 2020
Registrar: Link Intime India Private Limited
The company claims to be among the top five players in the Indian MSW management space. AWHC has 18 ongoing projects, which have reportedly started generating revenue. Some of its prominent ongoing collaborations include those with the municipal corporations of Mumbai (MCGM), Navi Mumbai (NMMC), North Delhi (NDMC), and Greater Noida (GNIDA).
As per the company’s red herring prospectus, it earned revenue of ₹215.1 crore (September 2020), ₹464.6 crore (March 2020), ₹298.5 crore (March 2019) and ₹290.7 crore (March 2018). Meanwhile, profit after tax came to ₹29 crore (September 2020), ₹62 crore (March 2020), ₹34.6 crore (March 2019) and 39.8 crore (March 2018).
The ₹300 crore IPO comprises a fresh issue of ₹85 crore and an offer for sale worth ₹215 crore. In terms of distribution, 50% of the issue is allotted to qualified institutional bidders (QIBs), 15% is reserved for non-institutional investors (those investing over ₹2 lakh in the IPO), and 35% for retail individual investors.
Want to know more? Check out the red herring prospectus for more details of this IPO. Click here to subscribe to the Antony Waste Handling Cell IPO with Upstox.