INSUBCONTINENT EXCLUSIVE:
Mumbai: Antony Waste Handling Cell extended the bidding period for its Rs 206 crore IPO to March 16, citing market volatility and the
moratorium imposed on YES Bank
The issue remained undersubscribed at 50 per cent on Day 3 of the bidding process on Friday.
The issue of the solid waste management company
saw bids for 24,08,850 shares compared with the issue size of 48,20,508 shares amid a broad-based selloff in the market.
“Markets have
been witnessing significant volatility since the filing of our RHP
Additionally, the preventive moratorium imposed on YES Bank has adversely impacted investor sentiment, with the markets falling and
significant erosion in the liquidity position across the system and network impacts,” the company said in a release.
The price band of the
issue has been set at Rs 295-Rs 300 per equity share
The offer included fresh issue of up to Rs 35 crore equity shares and an offer for sale of up to 5,700,000 shares
“We believe that the exceptional volatility seen in markets today has impacted investment decisions for investors across categories and
in light of the same, we have decided to extend the bidding period for the Issue, till March 16, 2020
We believe that the extension will allow current volatility to subside and allow all categories of investors to participate in the Issue,”
it added.
The company has already garnered Rs 60.94 crore from three anchor investors.
Antony Waste Handling Cell proposes to utilise the
net proceeds towards reduction of the consolidated borrowings of the company and general corporate purposes
Further, the company expects that the listing will enhance visibility and brand image and provide liquidity to shareholders.
Analysts said
one may subscribe to the issue only for long-term gains
Investors looking for strong listing gains may skip the issue, they said
The company counts Municipal Corporation of Greater Mumbai, North Delhi Municipal Corporation, New Okhla Industrial Development Authority,
Nagpur Municipal Corporation and the Greater Noida Industrial Development Authority as its clients
The company said it is also currently undertaking a project for Jaypee International Sports.
The profit after tax for fiscal 2017, 2018 and
2019 and the six-month period ended September 30, 2019, were Rs 41.04 crore, Rs 39.88 crore and Rs 34.42 crore and Rs 37.84 crore,
respectively.
Equirus Capital is the sole Book Running Lead Manager (BRLM) to the issue.