Antony Waste closes up 29% over IPO price on market debut

Mumbai: Antony Waste Handling Cell made a strong debut on the bourses on Friday — the first trading day of 2021. The stock ended 29 per cent over its IPO price of Rs 315 after listing at a 38.44 per cent premium. The stock listed at Rs 436.10 and touched a high of Rs 492.75 before ending at Rs 407.25.

The Rs 300-crore IPO of the municipal solid waste management company was subscribed 15 times when it opened for subscription between December 21 and December 23. The company had set a price band of Rs 313-315 for the IPO. The retail portion of the IPO was subscribed 16.54 times, non-institutional portion was subscribed 18.7 times and the portion set aside for qualified institutional buyers was subscribed 9.7 times.

Geetanjali Kedia of SPTulsian.com said that some may view Antony Waste Handling as an ESG or Environment, Social and Governance theme play, but there are better choices available.


“Company earns 2/3rd of its revenue from collecting urban municipal waste and 1/3rd through sweeping and processing. 22 per cent of these contracts do not have escalation clause, indicating high inflation risk, as duration is long over 7 plus years,” said Kedia.

“Entry barriers to business are low as many municipalities undertake waste collection themselves due to surplus labour at their end and negligible technical knowhow. Thus competition intensity remains high,” she said.