Shares of Antony Waste Handling Cell Ltd rallied 7% on 26 October after the company announced that its subsidiary had secured a Rs 386 crore order.

Leading integrated solid waste management company said that its material subsidiary, AG Enviro Infra Projects Pvt Ltd, has received a contract from Panvel Municipal Corporation in the Mumbai Metropolitan Region for door-to-door collection and transportation of municipal solid waste by the corporation.

The contract is for five years with an option of a two-year extension period.

According to the terms of the contract, the entire infrastructure for the project will be procured by the Panvel Municipal Corporation and will subsequently be entrusted to the company’s subsidiary. This means that the initial capital expenditure for the said project will be financed by the Panvel Municipal Corporation.

Jose Jacob, Chairman and Managing Director of Antony Waste Handling Cell, said, “In this five-year contract, with the option of a two-year extension, the corporation has agreed to shoulder the responsibility for all capital expenditures associated with this project. This will allow us to embrace an asset-light model which will empower us to allocate our capital resources to other upcoming and potential opportunities.”

Earlier this month, the company announced that it had started commercial power sales from its newly commissioned waste-to-energy power plant, which is located at Pimpri Chinchwad Municipal Corporation.

At 3:20 pm, the shares of Antony Waste Handling Cells were trading 5.21% above at Rs 387.75 on NSE.