EMS IPO fully subscribed: GMP, review, subscription status, other details in 10 points. Apply or not? | Mint – Mint

EMS IPO: The initial public offering (IPO) of EMS Limited has opened today and the public issue will remain open for bidding till 12th September 2023. The book build issue aims to raise 321.24 crore from its initial offer. The water treatment and waste water management company has fixed EMS IPO price band at 200 to 211 per equity share. The public issue is proposed for listing on BSE and NSE. Meanwhile, shares of EMS Limited are available for trade in unlisted stock market. According to market observers, EMS shares are available at a premium of 125 in grey market today. However, on day one of bidding the book build issue has been fully subscribed within few hours of opening of the bidding process.

EMS IPO subscription status

On day one of bidding, the public issue has been subscribed 3.77 times whereas its retail portion has been subscribed 4.82 times. Its NII portion has been filled 6 times.

Important EMS IPO details

1] EMS IPO GMP today: Shares of EMS Limited are available at a premium of 125 inn unlisted stock market today, say market observers.
2] EMS IPO price: Company has fixed price band of the public issue at 200 to 211 per equity share.
3] EMS IPO date: The book build issue has opened for subscribers today and it will remain open for bidders till 12th September 2023.
4] EMS IPO size: The company aims to raise 321.24 crore from its initial offer out of which 146.24 crore is expected from fresh issues while rest 175 crore is reserved for OFS (Offer for Sale).
5] EMS IPO lot size: A bidder will be able to apply in lots and one lot of the public offer will comprise 70 company shares.
6] EMS IPO allotment date: Finalisation of share allocation is expected on 15th September 2023.
7] EMS IPO registrar: KFin Technologies has been appointed as official registrar of the public issue.
8] EMS IPO listing: The book build issue is proposed for listing on BSE and NSE.
9] EMS IPO listing date: The public issue is expected to list on Indian bourses on 21st September 2023.
10] EMS IPO review: Giving ‘subscribe’ tag to the public offer for long term, Arihant Capital says, “EMS Ltd has a strong order book of INR 17,449.2mn (~3.3x of FY23 revenue) as of 15th Jul 2023 shows potential revenue visibility and is expected to grow at a CAGR of 30% over the medium term. The company is currently bidding under INR 5bn projects and expected to bid INR 15bn to INR 20bn projects going forward. The majority of projects are funded by World Bank which assures payments and working capital days stand around 90 days. The company is very selective in bidding for high-margin projects and the conversion ratio is around 10%-15%. The higher margins project led to maintaining an EBITDA margin of 30% and a PAT margin of 20% going forward. The majority of IPO funds will be utilized for working capital requirements of projects indicating strong execution of projects over the medium term. At the upper band of INR 211, the issue is valued at an EV/EBITDA of 6.2x based on FY23 EBITDA and PE of 9.1x based on FY23 EPS of INR 23.2. We are recommending “Subscribe for Long Term” for this issue.”
Ventura has also given ‘subscribe’ tag to EMS IPO citing, “One notable aspect of their business strategy is their flexibility in project execution. In addition to independently undertaking projects, they actively engage in joint ventures and partnerships with other infrastructure and construction companies. These collaborations are instrumental in achieving pre-qualification, both in technical and financial aspects, during the bidding process. Successful joint ventures enable them to leverage the specific technical skills and qualifications of their partners, thereby enhancing their ability to execute complex projects effectively.”
Giving ‘subscribe’ for long term tag, Aditya Gaggar, Director of Progressive Shares said, “The company is debt-free and operates on an asset-light model of business. If we attribute FY23 earnings to post-IPO fully diluted paid-up equity capital, then the asking price is at a P/E of 10.78. The management has indicated to be on the fast forward mode of growth after the static years of the pandemic. Considering the performance of FY23; brighter prospects are chalked going forward. One can look at the IPO from long-term perspective capitalizing on the lucrative pricing.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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