EMS IPO opened for subscription on Friday, September 8, and will close today (Tuesday, September 12). Retail investors responded favourably overall to EMS IPO’s first two subscription days. EMS IPO was subscribed 15.05 times on day 2, and the offer was subscribed 3.77 times on day 1.
EMS IPO has reserved not more than 50% of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15% for Non Institutional Investors (NII), and not less than 35% of the offer is reserved for Retail Investors.
EMS Ltd provides sewerage solutions, water supply systems, water and waste treatment facilities, electrical transmission and distribution, road and allied works, and operates and maintains water supply scheme projects (WSSPs) and wastewater scheme projects (WWSPs) for governmental authorities/bodies.
EMS IPO details
EMS IPO is made up of fresh issue comprises of shares worth ₹146.24 crore and offer for sale (OFS) portion consists of 82,94,118 shares of ₹10, which aggregates to ₹175 crore sold by promoter selling shareholder Ramveer Singh. EMS IPO total issue size is ₹321.24 crores. EMS IPO has raised about ₹96.37 crore from anchor investors.
NAV Capital VCC-NAV Capital Emerging Star Fund, Abakkus Diversified Alpha Fund, Saint Capital Fund, Meru Investment Fund, Bofa Securities Europe, Morgan Stanley Asia (Singapore) PTE were among the domestic and foreign investors who took part in the anchor book issue.
The net proceeds from the fresh issue will be utilised to fund working capital requirements of the company, and general corporate purposes.
The company obtained ₹33.76 crore through a private placement (pre-IPO placement) of 16 lakh shares at the upper price band before submitting the red-herring prospectus. As a result, the fresh issue’s size was lowered from 180 crore to 146.24 crore, a reduction of ₹33.76 crore.
EMS IPO Review
Brokerage Choice Equity Broking in its report, stated that EMS IPO demands for a P/E multiple of 10.9x (to its FY23 earnings), which is less than the industry average.
“Unsustainable expansion in the urbanisation seems to be putting pressure on the urban wastewater management, planning and treatment. Backed by the government’s proactive policies, the domestic water & wastewater treatment market is expanding rapidly and has strong outlook in the medium term.
With a strong focus on sewage treatment segment, EMS is rightly placed to benefit from the market expansion. Its robust order book & profitability, healthy balance sheet and demanded discounted valuation makes this issue attractive. Thus, we assign a ‘Subscribe’ rating for the issue, added the brokerage.
Hensex Securities brokerage too has assigned ‘Subscribe’ rating for the issue. The brokerage house has advised investors to apply for listing gains as well as long term investment.
“Strong order book of projects across india, established track record, strong execution capabilities, and strong financial performance. We recommend a ‘Subscribe’ to the issue,” said Hensex in its report.
Dilip Davda, the contributing editor at Chittorgarh.com said that the company has posted static performance for FY21 and FY22 under the pandemic impact but performed well for FY23 indicating bright prospects ahead. It has orders worth ₹1845 crore on hand and many in pipelines. According to the management, the company is in a fast-forward mode now.
“Investors may consider parking funds for short to long-term rewards in this lucratively priced issue,” advised Davda.
EMS IPO dates
EMS IPO basis of allotment of shares will be finalised on Friday, September 15 and the company will initiate refunds on Monday, September 18, while the shares will be credited to the demat account of allottees on Wednesday, September 20. EMS IPO shares are likely to be listed on BSE and NSE on Thursday, September 21.
EMS IPO GMP today
EMS IPO GMP today or or grey market premium is +120 similar to the previous trading session. This indicates EMS share price were trading at a premium of ₹120 in the grey market on Tuesday, according to topsharebrokers.com
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of EMS share price is ₹331 apiece, which is 56.87% higher than the IPO price of ₹211.
Today IPO GMP trending upward and expects a strong listing. The lowest GMP is ₹103, while the highest GMP is ₹127, according to topsharebrokers.com. On Sunday, EMS IPO’s GMP was ₹127.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Also Read: Jupiter Hospital IPO: GMP, allotment date, how to check allotment status online
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