Below are Views On Antony Waste IPO subscription By Mr. Keshav Lahoti, Associate Equity Analyst, Angel Broking Ltd

Antony Waste Handling Cell anchor book has been fully subscribed by raising Rs.90 crore from 10 investors. 44.4% of the anchor book was subscribed by Massachusetts Institute of Technology. The anchor allotment was done at the higher price band of Rs.315. Anchor investors of the issue were Tata AIG General Insurance Company, 238 Plan Associates LLC.

The issue was subscribed 2 times on the day one, unlike last time in March'20 when the issue was not even subscribed a single time. We don't expect Antony to get strong demand like the last few IPO such as Burger King, Mrs Bector etc

Company is present in the fast-growing municipal solid waste management industry with end-to-end capabilities. Company has a strong track record of project execution. It also has signed long term contracts with municipalities. Although we cannot ignore the inherent risk in the business model such as business is dependent on municipal authorities for a substantial proportion of the revenue. This business involves receivables risk from municipalities, which can lead to financial instability for the company. This also restricts further investment in asset development. Business is dependent on a limited number of customers for a significant portion of the revenue. So considering the valuation of P/E of 11.5x on FY20 basis (at the upper price band), we recommended “NEUTRAL” rating on the issue.

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