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    Antony Waste Handling IPO opens for subscription: Should you subscribe? - Moneycontrol.com thumbnail

    The Rs 203-crore initial public offering (IPO) of Antony Waste Handling Cell opened for subscription on March 4. It is the second public offer of the current year after SBI Cards and Payment Services.The issue consists of a fresh issue of Rs 35 crore and an offer for sale of up to 57 lakh equity shares by investors Leeds (Mauritius), Tonbridge (Mauritius); Cambridge (Mauritius) and Guildford (Mauritius).Antony Waste plans to raise Rs 203.15 crore at the lower end of the price band of Rs 295-300 per share. The company successfully raised Rs 60.94 crore from three anchor investors on March 3 at a price of Rs 295 per share, but what should investors do – should they subscribe or avoid?Majority of brokerages and analysts advised avoiding the issue considering the risk of dependency on the government for projects and revenue volatility in the past.They feel the timing of the public issue seems incorrect as the behemoth SBI Cards’ Rs 10,335 crore IPO will remain open till March 5, and as a result, getting traction could be difficult for Antony Waste.”Antony Waste Handling Cell is a comparatively smaller IPO compared to the behemoth SBI Cards and due to the time clash, we feel that Antony Waste’s IPO will not get traction. Fundamentally too, this company has delivered poor growth in the past three years. To add to it, it is completely dependent on the government for its revenues as top five of its clients contribute over 90 percent of its revenue. Hence it faces high concentration risk,” Nirali Shah, Senior Research Analyst, Samco Securities, told Moneycontrol.Also Read – Antony Waste Handling Cell IPO to open on Wednesday: 10 key things to knowAccording to Shah, although Antony Waste has strong potential in the long term, at this point l
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    Also Read  Antony Waste Handling Cell IPO to open on March 4, price band at Rs 295-300/sh - Moneycontrol.com

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