EMS IPO GMP, Review, Subscription Status & Other Details
The highly anticipated initial public offering (IPO) of EMS Limited is now open for bidding until September 12, 2023. This dynamic water treatment and wastewater management company is seeking to raise a substantial ₹321.24 crore from its IPO. Investors can acquire shares at a price range of ₹200 to ₹211 per equity share. EMS Limited aims to list on both the BSE and NSE, while interested investors can already trade EMS Limited shares in the unlisted stock market, commanding a notable premium of ₹125 according to market experts.
EMS IPO Subscription Status Update:
As of 11:48 AM on the first day of bidding, the EMS IPO has received a subscription of 0.58 times its total offering, with the retail portion oversubscribed at 0.78 times and the NII (Non-Institutional Investors) portion at 0.85 times.
Key Details About the EMS IPO:
EMS IPO Grey Market Premium Today:
Observers report that EMS Limited shares are currently trading at a premium of ₹125 in the unlisted stock market.
EMS IPO Price Range:
The public issue is priced between ₹200 and ₹211 per equity share.
EMS IPO Opening and Closing Date:
The book build issue opened for subscription today and will close on September 12, 2023.
EMS IPO Fundraising Target:
EMS Limited aims to raise ₹321.24 crore through its initial offer, with ₹146.24 crore expected from fresh issues and ₹175 crore allocated for the Offer for Sale (OFS).
EMS IPO Lot Size:
Investors can apply for shares in lots, with each lot comprising 70 company shares.
EMS IPO Allotment Date:
The finalization of share allocation is scheduled for September 15, 2023.
EMS IPO Registrar:
KFin Technologies has been appointed as the official registrar for the public issue.
EMS IPO Listing Exchange:
EMS Limited plans to list on both the BSE and NSE, offering investors broad market access.
EMS IPO Listing Date:
Mark your calendars for the expected listing date on Indian stock exchanges, set for September 21, 2023.
EMS IPO Expert Review:
Arihant Capital, a respected market expert, has given a ‘subscribe’ recommendation for long-term investors. They emphasize that EMS Ltd boasts a robust order book of Rs 17,449.2 million (approximately 3.3 times FY23 revenue) as of July 15, 2023. This signifies substantial revenue potential, projected to grow at a CAGR of 30% over the medium term. EMS Ltd is actively bidding on projects valued at under Rs 5 billion, with plans to bid on projects ranging from Rs 15 billion to Rs 20 billion in the future. Most of these projects are funded by the World Bank, ensuring timely payments, with a working capital cycle of approximately 90 days. The company maintains a selective approach, targeting high-margin projects with a conversion ratio of 10%-15%. This focus on high-margin projects has resulted in an EBITDA margin of 30% and a PAT margin of 20% moving forward. The majority of IPO funds will be dedicated to fulfilling working capital requirements for projects, underscoring their commitment to robust project execution in the medium term. At the upper price band of Rs 211, the issue is valued at an EV/EBITDA of 6.2x based on FY23 EBITDA and a PE of 9.1x based on FY23 EPS of Rs 23.2. Arihant Capital strongly recommends a “Subscribe for Long Term” strategy for this offering.
About EMS:
EMS Infracon Private Limited offers a range of infrastructure construction services with a specialization in various areas including road construction, bridge development, wastewater collection systems, sewage treatment plants, power transmission projects, building construction, and pumping station installations. Additionally, the company also provides design and maintenance services. EMS Infracon caters to clients in India.
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