EMS Limited IPO

EMS plans to raise Rs 321.24 crore through initial public offering. The subscription for the IPO will be open from September 8 to September 12, 2023. The price band is fixed at Rs 200–211 per share with a face value of Rs 10 apiece.

The IPO comprises fresh issue of shares worth Rs 146.24 crore and offer for sale of shares totalling Rs 175 crore. The lot size is set at 70 shares per lot.

Company Summary

EMS Limited is in the business of Sewerage Solution, Water Supply System, Water and Waste Treatment Plants, Electrical Transmission and Distribution, Road and Allied works, operation and maintenance of Waste Water Scheme Projects (WWSPs) and Water Supply Scheme Projects (WSSPs) for government authorities/bodies. 

WWSPs include Sewage Treatment Plants (STPs) along with Sewage Network Schemes and Common Effluent Treatment Plants (CETPs) and WSSPs include Water Treatment Plants (WTPs) along with pumping stations and laying of pipelines for supply of water (collectively, “Projects”).

The company offers services ranging from designing and engineering projects, procuring raw materials, executing projects at the site, managing overall projects, and commissioning projects. After commissioning projects, operations and maintenance of these plants for a certain period is a part of the agreement in recent times.

The company has a team of 61 engineers, who are supported by third-party consultants and industry experts to ensure compliance and quality standards laid down by the industry and government agencies. The company has its own team for civil construction works, thereby reducing dependence on third parties. 

Since the company’s incorporation in 2012, EMS has completed 67 projects. As on July 31, 2023, the company is operating and maintaining 18 projects including WWSPs, WSSPs, STPs & HAM aggregating to Rs 1744.92 crore and five O&M projects aggregating to Rs 99.28 crore.

Company Strengths

  • Highly skilled in-house designing, engineering and execution team.
  • Strong order book of projects across India.
  • Expertise in project management capabilities to complete projects in a timely manner.
  • Well-established industry experience with robust execution capabilities.
  • Experienced promoters and management team.
  • Scalable and asset light business model as well as strong financial performance for the last three years.

Company Financials

Period Ended

FY23

FY22

FY21

Total Assets (Rs in crore)

638.72

502.55

378.31

Total Revenue (Rs in crore)

543.28

363.1

336.18

EBITDA (Rs in crore)

145.99

112.51

98.9

EBITDA Margin

27.69%

31.27%

29.91%

Profit After Tax (Rs in crore)

108.61

79.05

71.95

PAT Margin

20.18%

21.97%

21.76%

ROCE

28.26%

29.50%

33.65%

ROE

22.27%

20.79%

23.83%

Debt to Equity ratio

0.09

0.01

0.01

Purpose of the IPO

  • The proceeds from offer for sale of shares will go to the respective promoter selling shareholders after deduction of issue expenses and relevant taxes.
  • The net proceeds from fresh issue of shares will be utilised for funding working capital requirements of the company aggregating up to Rs 101.24 crore, and general corporate purposes.

Company Promoters

Ramveer Singh and Ashish Tomar are the promoters of the company.

IPO Details

IPO Subscription Date

September 8 to September 12, 2023

Face Value

Rs 10 per share

Price Band

Rs 200 to Rs 211 per share

Lot Size

70 Shares

Total Issue Size

Rs 321.24 crore

Fresh Issue

Shares worth Rs 146.24 crore

Offer for Sale

82,94,118 equity shares aggregating up to Rs 175 crore

Issue Type

Book Built Issue IPO

Listing At

BSE, NSE

IPO Lot Size

Application

Lots

Shares

Amount

Retail (Minimum)

1

70

Rs 14,770

Retail (Maximum)

13

910

Rs 1,92,010

Small HNI (Minimum)

14

980

Rs 2,06,780

Small HNI (Maximum)

67

4,690

Rs 9,89,590

Large HNI (Minimum)

68

4,760

Rs 10,04,360

Allotment Details

Event

Date

Allotment of shares

September 15, 2023

Initiation of Refunds

September 18, 2023

Credit of Shares to Demat Account

September 20, 2023

Listing Date

September 21, 2023

To check allotment, click here