The initial public offering of Antony Waste Handling Cell has been subscribed 1.97 times on December 21, the first day of the bidding, supported by retail investors.
The Rs 300-crore public issue has received bids for 1.32 crore equity shares against reduced offer size (due to anchor book) of 66.66 lakh shares, the subscription data available on exchanges showed.
Qualified institutional buyers (QIB) have started putting their bids in afternoon. As per the norms, to get any public issue subscribed fully, the QIB portion has to subscribe at least 90 percent. The portion set aside for QIB was subscribed 63 percent.
The retail portion has received subscription of 3.5 times and that of non-institutional investors 8.3 percent.
Antony Waste Handling Cell IPO: 10 key things to know
Antony Waste Handling Cell raised Rs 90 crore from anchor investors on Friday at the higher end of price band of Rs 313-315 per share.
The public issue consists a fresh issue of Rs 85 crore and an offer for sale of around Rs 215 crore by existing shareholders.
Antony Waste Handling Cell IPO opens today: Should you subscribe?
At the upper price band of Rs 315, "Antony Waste Handling Cell is available at P/E of 15x on FY21E EPS. Valuation looks attractive, considering healthy margins, improving revenue generation and increasing relevance of waste management. Hence, we recommend subscribe to the issue with a long-term perspective," said Geojit Financial Services.
Antony Waste Handling Cell is one of the top five players in the Indian Municipal Solid Waste (MSW) management industry providing services across the country with an established track record of more than 19 years. The company undertakes MSW C&T (collection and transportation) projects, MSW processing projects and mechanized sweeping projects.
Antony Waste Handling Cell shares trade at 50% premium in grey market
As of November 2020, the company has 1,147 vehicles and 18 ongoing MSW projects across various municipalities.
"Waste management remains one of the most pressing issues of the modern world, as improper disposal of waste leads to environment pollution which in turn affects health of humans. Waste management business provides significant opportunity for recycling & reusing materials, organic farming & production of clean energy," Geojit said.
MSW generation in India is expected to grow at a CAGR of 8.9 percent (FY2020-25) from 75 million TPA (tons per annum) to reach 115 million TPA by FY2025.
Antony Waste increased its current IPO size to Rs 300 crore, from previous public issue of Rs 206 crore in March this year which had later withdrawn following tepid investor response and extremely weak markets conditions due to sudden rise of pandemic.
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