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.