Antony Waste IPO: A good long-term bet for risk takers, say analysts

 

As the sector remains in a nascent stage, analysts see the firm offering decent returns only in the long-term.

Betting on a gush of liquidity and heightened risk appetite, Antony Waste Handling is making a second attempt to go public. The three-day initial public offer (IPO) of the company will open today at a price band of Rs 313-315 per share.

At the upper end of the price band, the solid waste management company expects to raise Rs 300 crore via the IPO. This amount, the company says, will be utilised to finance PCMC WTE Project through investment in subsidiaries; to pay-off company's consolidated borrowings by infusing debt in Subsidiary-AG Enviro; and to meet general corporate purposes.

The issue consists of a fresh issue of shares worth Rs 85 crore and an offer for sale of 68,24,933 equity shares by existing shareholders, and will be available in lots of 47 shares and its multiples thereof.

Under the OFS, Leeds (Mauritius) will sell 13,90,330 equity shares, Tonbridge (Mauritius) will offload 20,85,510 shares, Cambridge (Mauritius) 11,58,667 equity shares; and Guildford (Mauritius) will sell 11,58,667 equity shares, as per the company’s red herring prospectus.

As the sector remains in a nascent stage, analysts see the firm offering decent returns only in the long-term. As per an analysis by Choice Broking, the per capita waste generation in India ranges from 200-600 grams per day, lower than the global average of around 740 grams in 2018. Besides, municipal waste management services in India are controlled by relevant municipal corporations and only 30-35 per cent is managed by professional waste management players.