Antony Waste Handling Cell IPO subscribed 15 times on last day

NEW DELHI: The Rs 300 crore initial public offer (IPO) of Antony Waste Handling Cell was subscribed about 15 times on Day 3, as it hit the capital market for the second time in 2020.

By 4:15 pm, the issue received bids for 9,91,27,653 shares, which was 5.82 times the issue size of 66,66,342 shares.

In its first attempt in March, the company had offered its Rs 206 crore issue in the price band of Rs 295-300. But it could not generate enough bids to sail through despite extending the IPO deadline, due to volatility in the market and the uncertainty over rising Covid-19 cases globally at the onset of the pandemic.

The company has now come out with a Rs 300 crore issue in the price band of Rs 313- Rs 315 per equity share, and the issue closes on December 23.

Ahead of the opening of the IPO, the company raised Rs 90 crore from 10 anchor investors at an upper price band of Rs 315 per equity share.

Massachusetts Institute of Technology was the top anchor investor as it was allotted 44.44 per cent of the total such allotments. SBI Mutual Fund also lapped up shares of the company in a total of six schemes, and accounted for 33.34 per cent of total anchor allotments of the company.

The Thane-based company provides solutions for municipal solid waste (MSW).

Prabudas Lilldaher recommends investors to subscribe to the IPO from a near-term perspective, as it sees reasonable listing gains given strong market sentiment and enormous outperformance of the recent public issues, but was cautious from a long-term horizon.

“However, we remain cautious on its long term growth based on factors like large dependency on projects from State government authorities primarily Municipal Corporations (unstable budget allocation for MSW management), highly competitive market (with presence of local, national and global players), untested and still emerging business model, huge capex required for growth and rich valuation,” PL analysts said in a note.