Antony Waste Handling Cell makes strong Dalal Street debut; shares zoom 36% over IPO price

Antony Waste Handling Cell made its stock market debut today at Rs 430 per share, up 36.5% from its issue price of Rs 315. Minutes after listing, shares of Antony Waste added to gains and were trading at Rs 489 apiece. Antony Waste’s IPO was the last of the 15 issues that we witnessed in 2020. This was the second attempt made by the firm to get listed on the bourses. The earlier attempt at the beginning of 2020 had to be foiled owing to the sharp sell-off equity markets were witnessing in March. The market capitalization of Antony Waste Handling Cell on listing was over Rs 1,200 crore

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The Rs 300-crore issue of Antony Waste Handling Cell includes a fresh issue of Rs 85 crore and an Offer For Sale (OFS) of the remaining portion. Of the total issue size, the firm will only receive the proceeds from the fresh issue which it plans to use to part- finance its waste-to-energy (WTE) project for the Pimpri Chinchwad Municipal Corporation (PCMC). The firm is a key player in the solid waste management business. Post the issue, promoter group’s shareholding has been reduced to 46.32% from 51.10% earlier. Public shareholding in the firm has increased to 53.77% from 48,90% pre-issue.

“Business of Antony is dependent on municipal authorities for a substantial proportion of the revenue, which is a major inherent risk in the business model,” said Keshav Lahoti, Associate Equity Analyst, Angel Broking. “This business involves receivables risk from municipalities, which can lead to financial instability for the company. So considering the risk-reward ratio, we believe there are better options available in the market from a long investment point of view,” he added.

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Financially, the firm has reported a net profit for the last three financial year. In the financial year 2018, the net profit of Antony Waste stood at Rs 39.9 crore, which fell to Rs 34.7 crore in the next fiscal year. In the previous financial year, Antony Waste reported a net profit of 62.1 crore. Antony Waste has a proven track record of solid waste management with end-to-end capabilities in the domain. The firm also has a healthy fleet of vehicles that are technology backed with and equipment that enables it to manage the operations efficiently.