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Home >Markets >Ipo >Antony Waste Handling Cell’s 300-cr IPO gets subscribed 1.98 times on Day 1

Mumbai: Antony Waste Handling Cell Ltd's (AWHCL) 300-crore initial public offering (IPO) was subscribed nearly 2 times on the first day, joining recent successes in the primary market such as Burger King India Ltd and Mrs Bectors Food Specialities Ltd.

The firm saw its IPO subscribed 1.98 times till the end of the first day on Monday, data from NSE showed. The issue closes Wednesday. The IPO attracted bids for more than 13.20 million shares compared with an issue size of 6.67 million shares. Qualified institutional buyers and non institutional investors have subscribed 0.63 and 0.08 times. Retail investor portion subscribed by 3.56 times.

Antony Waste has fixed a price band of 313-315 per share for the offering, its filling stated. The company plans to raise 300 crore by selling up to 1.96 crore shares. The issue comprises an offer for sale of Rs.215 crore by Tonbridge (Mauritius) Ltd, Leeds (Mauritius) Ltd, Cambrid (Mauritius) Ltd and Guilford (Mauritius) Ltd. The issue also constitutes a fresh issue of Rs85 crore.

The proceeds from the issue will be used partly to finance its waste to energy project at Pimpri Chinchwad in Maharashtra via investment of 40 crore in its arm AG Enviro and ALESPL. It also plans to reduce consolidated borrowings by infusing debt of 39 crore in its arm AG Enviro for repayment/prepayment of portion of their outstanding indebtedness.

This is the second time this year that the company has launched its IPO after it withdrew its maiden attempt in March, following extreme market volatility due to covid outbreak. In its first attempt, in March 2020, the firm was priced in the range of 294-300 a share and was subscribed 0.50 times.

For fiscal year 2020, the company posted a profit of 62 crore, up 81% against 35 crore a year ago. Revenues for the year stood at 451 crore versus 284 crore. EBITDA margin remained unchanged at 30% from a year ago.

"At the upper price band of 315, AWHCL 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 brokerage firm Geojit in its latest report.

Antony Waste Handling Cell Ltd 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. As of November 2020, the company has 1,147 vehicles and 18 ongoing MSW projects across various municipalities.

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