Antony Waste Handling Cell Shares 54% Increase in Gray Market Premiums; Should you expect trading gains?

Antony Waste Handling Cell’s 300 million rupee initial public offering (IPO), which opened for subscription as of today, was 58 percent subscribed in less than two hours. The Antony Waste Handling Cell IPO will comprise a new issue of shares to be added to Rs 85 crore and an Offer to Sell (OFS) of up to 68.24 lakh of shares worth Rs 215 crore. Since the day of the price band announcement, Antony Waste Handling Cell Ltd’s share price has risen on the gray market. Today, the shares were trading at a premium of 54 percent or a premium of Rs 170 over the IPO price of Rs 315 each, at Rs 485 per share.

Also read: Today the IPO of Antony Waste Handling Cell opens; Should you subscribe or not?

Manan Doshi, co-founder of UnlistedArena.com that trades in pre-IPO stocks and unlisted stocks, told Financial Express Online that due to the current frenzy in the IPO market, Antony Waste Handling Cell Limited is gaining traction. in the primary market. Offer price valuations seem reasonable and the size of the small issue adds to the frenzy. The company’s operations in niche sectors are getting higher valuations now.

In the gray market, Antony Waste Handling Cell’s share premium has risen to 54% from 12% last week. Abhijeet Ramachandran, Independent Analyst / Co-Founder and Trainer at Tips2Trade, told Financial Express Online that due to the tremendous turmoil in the IPO market mainly due to an excellent uptrend in the major indices along with strong retail and QIB participation, premiums from gray market seem to be on the higher side. Ramachandran advised investors to invest cautiously and continue to make a profit on the quotes.

Antony Waste among India’s Top 5 RSU Players

Antony Waste Handling Cell is among the top five players in municipal solid waste management (MSW) in India, providing a full spectrum of MSW services including solid waste collection, transportation, processing and disposal services throughout the country, mainly for Indian municipalities. The firm has internal experience in the construction and landfill management sector.

Should You Expect Antony Waste Handling Cell IPO Listing Gains?

Government initiatives like ‘Swachh Bharat Abhiyan’ will be a good opportunity for these companies, says Manan Doshi. He also added that the heavy dependence on Municipal Corporations and the failure to retain / extend such projects can severely affect the company’s long-term revenues. “However, as short-term factors are positive, the IPO is expected to get a very good response from investors,” Doshi added.

Gaurav Garg, Research Director at CapitalVia Global Research Limited-Investment Advisor, told Financial Express Online, that in the solid waste management space, there is no peer-listed company in India. However, compared to its global peers, its valuations are attractive. However, the company’s business model is highly dependent on the continuation of its contracts with various municipal corporations. Limited sources of income and a high degree of dependence (80% + income from 5 contracts) on municipal authorities make the business model prone to a high degree of risk. Given the current euphoria in primary markets, the problem could be seen in over-underwriting. “However, given the over-reliance on a limited number of clients, we advise investors (who want to invest long-term) to avoid this,” Gaurav Garg said.

Ramachandran sees that Antony Waste Handling’s IPO has been quite attractively priced with a PE of just 10. “With steady growth in revenue and profits coupled with strong barriers to entry in the sector, a renewed focus on cleaning waste management, investors are recommended to sign the IPO and keep it from a long-term perspective, ”he added.