Coronavirus impact | Antony Waste Handling Cell withdraws Rs 203cr IPO

March 17
03:33 2020

The novel coronavirus-led market rout has compelled Antony Waste Handling Cell to withdraw its initial public offering on March 16, the last day of bidding, as it failed to secure enough subscription.

The company after consultation with its merchant banker on March 6 extended the IPO closing date by five working days to March 16.

The issue was subscribed only 49.55 percent on March 6, but since then it got stuck at those levels till March 16.

The company was proposed to raise nearly Rs 203 crore through this public issue at a price of Rs 294, the lower end of its price band of Rs 294-300 per share.

It had also revised its IPO price band to Rs 294-300 from Rs 295-300 per share earlier.

“Markets have been witnessing significant volatility since the filing of our RHP. Additionally, the preventive moratorium imposed on Yes Bank on March 5 has adversely impacted investor sentiment, with the markets falling and significant erosion in systemic liquidity,” the company had said on March 6.

Antony Waste is not the only victim of weak market conditions. Last week, Rossari Biotech had decided to launch its IPO on March 18, but immediately withdrew the same.

The Rs 10,340-crore public issue of SBI Cards and Payment Services was also impacted by the bear market phase as the issue was subscribed 26.54 times, much lower than analysts’ expectations considering company’s strong financials, elite position in the credit card industry, support from parent State Bank of India, among other things.

In fact, the market situation was so dire that SBI Card listed at a 13 percent discount on March 16 and settled at Rs 683.20 on the BSE against its issue price of Rs 755 per share.

The first-rising coronavirus cases outside of China especially in United States and Europe, the most developed regions, dented investors sentiment. The Sensex has lost 26 percent from its record high seen in January and investors’ wealth eroded by nearly Rs 39 lakh crore since mid-January.

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