Antony Waste IPO listing day strategy: Shares to list this week; should you book profit or hold?

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Updated: Dec 30, 2020 2:41 PM

The share allotment in Antony Waste Handling Cell initial public offer (IPO) has been finalised and equity shares will be credited to demat accounts of eligible investors on Thursday, December 31, 2020.

Antony waste IPOToday, Antony Waste Handling Cell shares were seen trading at Rs 435, with a premium of Rs 120 or 38 per cent over the IPO price of Rs 315 per share

The share allotment in Antony Waste Handling Cell initial public offer (IPO) has been finalised and equity shares will be credited to demat accounts of eligible investors on Thursday, December 31, 2020. Antony Waste Handling Cell share listing will happen on January 1, 2021 on BSE and NSE. The Rs 300-crore issue of the municipal solid waste management company was the last IPO of the calendar year 2020. Those who had placed bids for Antony Waste issue can now check their subscription status on the Link Intime India and BSE website.

Also read: Antony Waste Handling Cell IPO: Check share allotment status via BSE, Link Intime India website

Today, Antony Waste Handling Cell shares were seen trading at Rs 435, with a premium of Rs 120 or 38 per cent over the IPO price of Rs 315 per share. Manan Doshi, Co-Founder, UnlistedArena.com dealing in Pre-IPO & Unlisted Shares, told Financial Express Online that after the high volatility in the grey market and considerable subscription from HNIs, Antony Waste Handling Cell is expected to list in the range of Rs 415-435, which translates to almost 30-35 per cent listing gains. “In my personal opinion, such gains in the short term are superior and I would better choose to book profits on listing,” Doshi added.

The IPO of Antony Waste was subscribed 15.04 times, with retail investors bidding their portion of the issue 16.55 times. While Qualified Institutional Buyers (QIBs) have subscribed 9.67 times and Non-Institutional Investors 18.69 times of their respective quotas. The solid waste management company had earlier launched its IPO in March this year but was withdrawn due to a tepid response, as investors were pulling off their money from equities due to coronavirus.

What to expect from Antony Waste Handling Cell on listing day?

The management of Antony Waste is highly dependent on the municipal authorities for a substantial proportion of its business and revenues. Vishal Wagh, Head of Research, Bonanza Portfolio Ltd told Financial Express Online that any decline in budgetary allocations towards municipal solid waste management services may have a material adverse impact on the business. “Also, the company has a receivable risk from municipalities. The issue is offered at P/E of 11.5x on FY20 earnings. Any listing gains above 15-20 per cent should be booked,” Wagh said.

Gaurav Garg, Head of Research, CapitalVia Global Research expects Antony Waste to list at some premium. Investors should look at booking profits on listing day and wait for a correction and then can accumulate it at any correction. “I find Rs 250-270 range to be suitable for long term investment. However, since the business has a dependency on a few clients (~80% revenue comes from 5 clients), only the aggressive investors who are open to take high risks should invest in the stock. Other investors can avoid this stock,” he said.

Abhijeet Ramachandran, Independent Analyst/ Co-Founder and Trainer, Tips2Trade expects Antony Waste Handling Cell to open positively on listing day as it is a decently valued company with low competition. “However, investors are advised to book part profits on listing day as the overall market is very overvalued and a strong correction could be due sooner rather than later,” Ramachandran said.

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