The EMS Limited IPO is scheduled to launch on September 8 and is set to conclude on September 12. The company aims to raise approximately ₹321 crores through this IPO. The offering includes a fresh issue of ₹180 crores and an offer for sale of up to 82,94,118 shares, each with a face value of ₹10. The allocation breakdown for investors is 35% for retail investors, 50% for qualified institutional buyers (QIBs), and 15% for high-net-worth individuals (HNIs).
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The Grey Market Premium (GMP) for EMS IPO is ₹125 today.
What does EMS Limited do?
EMS Limited is a Delhi-based, ISO 9001:2015 certified multi-disciplinary EPC (Engineering, Procurement, and Construction) company that specializes in providing comprehensive services for water and wastewater management. They offer end-to-end solutions, from initial engineering and design to the construction and installation of water, wastewater, and domestic waste treatment facilities.
The company operates in various segments, including:
- Sewerage Solutions: EMS Limited is involved in providing solutions for sewage management, including Sewage Treatment Plants (STPs) and Sewage Network Schemes.
- Water Supply Systems: They are engaged in the development of Water Supply Scheme Projects (WSSPs), including Water Treatment Plants (WTPs), pumping stations, and pipeline laying for water supply.
- Water and Waste Treatment Plants: EMS Limited plays a crucial role in designing, constructing, and maintaining water and wastewater treatment facilities.
- Electrical Transmission and Distribution: They are involved in electrical infrastructure projects.
- Road and Allied Works: The company is engaged in road construction and related infrastructure projects.
- Operation and Maintenance: EMS Limited operates and maintains several projects, including Wastewater Scheme Projects (WWSPs) and Water Supply Scheme Projects (WSSPs), for government authorities and bodies.
EMS Limited prides itself on having an in-house team of engineers who handle design, engineering, and construction, reducing their reliance on third-party contractors. They also collaborate with third-party consultants and industry experts to ensure compliance with industry and government quality standards. Additionally, they have a dedicated team for civil construction works.
Currently, EMS Limited operates and maintains 13 projects, including WWSPs, WSSPs, STPs (Sewage Treatment Plants), HAM (Hybrid Annuity Model) projects, and 5 O&M (Operation and Maintenance) projects spanning across five different states.
The company operates in sectors that are vital for India’s infrastructure development:
- Water Supply and Wastewater Management: The Indian government has launched various initiatives to improve water supply and sewage infrastructure, with a substantial budget allocation for such projects in the coming years.
- Railway Industry: EMS Limited may be involved in railway infrastructure projects, considering the significant role played by Indian Railways in the country’s transportation and economy. The government has also allocated a substantial budget for railway development.
- Roads and Highways: Infrastructure development, including the construction of roads and highways, is a top priority for the government, with significant investments planned in this sector.
- Power Sector: The power sector is crucial for India’s economic growth, and EMS Limited might participate in projects related to power generation, transmission, and distribution. The government has allocated significant funds for the power sector’s development.
EMS Limited’s involvement in these critical infrastructure sectors positions it well to contribute to India’s ongoing development and growth. Please note that the company’s activities and projects may evolve over time, and it’s essential to verify the most current information through official sources or company updates.
EMS Limited IPO Here’s a summary of the key information:
- IPO Open: September 8, 2023
- IPO Close: September 12, 2023
- IPO Size: Approximately ₹321 Crores
- Fresh Issue: Approximately ₹180 Crores
- Offer for Sale: Approximately 82,94,118 Equity Shares
- Face Value: ₹10 Per Equity Share
- IPO Price Band: ₹200 to ₹211 Per Share
- IPO Listing on: BSE (Bombay Stock Exchange) and NSE (National Stock Exchange)
- Retail Quota: 35%
- QIB Quota: 50%
- NII (Non-Institutional Investors) Quota: 15%
- Discount: N/A
- DRHP Draft Prospectus: Link to DRHP Draft Prospectus
- RHP Draft Prospectus: Link to RHP Draft Prospectus
- Purpose of Issue:
The primary objective of the EMS Limited IPO is to address the immediate working capital needs of the company. The primary focus will be on strengthening the financial stability of the company. In addition to shoring up its working capital, EMS Limited may also consider allocating funds towards the development of new water treatment solutions aimed at a wider customer base. There is a strategic emphasis on prioritizing marketing efforts and expanding business operations in international markets.
Investors interested in the EMS Limited IPO should review the draft prospectus and consider their investment decisions carefully. It’s also advisable to check for any updates or changes in the IPO details through official sources or the company’s website.
EMS Limited IPO Market Lot
The EMS Limited IPO minimum market lot is 70 shares with ₹14,770 application amount. The retail investors can apply up-to 13 lots with 910 shares or ₹192,010 amount.
| CATEGORY | % OFFERED |
| Qualified Institutional | Maximum 50% |
| Non-Institutional | Minimum 15% |
| Retail Individual | Minimum 35% |
EMS Limited IPO allotment and listing dates. Here’s a summary of the important dates related to the IPO:
- Anchor Investors Allotment: September 7, 2023
- IPO Open Date: September 8, 2023
- IPO Close Date: September 12, 2023
- Basis of Allotment: September 18, 2023
- Refunds: September 19, 2023
- Credit to Demat Account: September 20, 2023
- IPO Listing Date: September 21, 2023
Please note that these dates are subject to change, and it’s essential to verify the final dates from official sources or the company’s website closer to the IPO event. Investors should stay informed about any updates or changes in the schedule.
EMS Limited’s strengths in relation to their upcoming IPO. These strengths can be essential considerations for investors evaluating whether to participate in the IPO. Here’s a breakdown of the strengths mentioned:
- In-House Capabilities: EMS Limited has an in-house team for designing, engineering, and execution, which can lead to greater control and efficiency in project development.
- Strong Execution Track Record: With the completion of 67 projects, EMS Limited has demonstrated its strong execution capabilities and experience in the industry.
- Traditional Technologies: The company’s use of traditional technologies in the construction and installation of Wastewater Scheme Projects (WWSPs) and Water Supply Scheme Projects (WSSPs) may indicate a reliable and proven approach.
- Funding from World Bank: Projects funded by the World Bank can be seen as a positive sign, as it suggests a level of credibility and financial backing from international institutions.
- Robust Order Book: A robust order book indicates a healthy pipeline of projects, which can contribute to stable revenue streams and growth potential.
- Scalable and Asset-Light Model: An asset-light business model combined with a strong financial position can provide flexibility for expansion and investment in new projects.
- Experienced Management Team: An experienced management team is crucial for the successful execution of projects and overall company growth.
EMS Limited. Understanding these risks is crucial for investors considering participation in the company’s IPO. Here are the key risks mentioned:
- Dependency on Government Projects: EMS Limited relies entirely on government projects for its revenue. Any changes in government policies related to environmental and water treatment or difficulties in securing government projects can significantly affect its operations and cash flows.
- Negative Cash Flows in the Past: The company has experienced negative cash flows in the past. This can indicate financial instability and may impact its ability to meet its financial obligations.
- Previous Blacklisting: EMS Limited has been blacklisted by government bodies in the past, raising concerns about its past conduct and the possibility of such issues recurring.
- Dependency on World Bank Funding: The company’s projects are funded by the World Bank. A reduction in budgetary allocations by the World Bank for Water and Waste Treatment Plants (WWTPs) and Water Supply Scheme Projects (WSSPs) could limit the number of projects undertaken by government authorities, directly affecting EMS Limited.
- Pandemic and Disease Risk: The outbreak of severe communicable diseases, such as COVID-19, can disrupt operations, supply chains, and project timelines, leading to adverse effects on the company’s performance.
- Capital-Intensive Nature: EMS Limited operates in a capital-intensive industry, requiring significant investments in infrastructure and equipment. This capital intensity can strain financial resources and affect profitability.
- Working Capital Requirements: The company has higher working capital requirements, which may necessitate consistent cash flows and effective management to support ongoing operations.
Investors should carefully consider these risks along with the company’s strengths and financial performance before making investment decisions. Additionally, they should review the company’s prospectus and consult with financial advisors to assess their risk tolerance and investment objectives.
The financial highlights of EMS Ltd for the last three completed financial years:
| Particulars | FY23 | FY22 | FY21 |
| Net Revenues (₹ in crore) | 543.28 | 363.10 | 336.18 |
| Sales Growth (%) | 49.62% | 8.01% | 1.15% |
| Profit after Tax (₹ in crore) | 108.85 | 78.93 | 71.91 |
| PAT Margins (%) | 20.04% | 21.74% | 21.39% |
| Total Equity (₹ in crore) | 421.30 | 380.18 | 301.91 |
| Total Assets (₹ in crore) | 641.41 | 502.55 | 378.31 |
EMS Limited’s IPO for FY2023. Here’s a summary of the key valuation metrics:
- Earning Per Share (EPS): ₹23.15 per Equity Share
- Price/Earning (P/E) Ratio: 8.64 to 9.11
- Return on Net Worth (RONW): 22.31%
- Net Asset Value (NAV): ₹103.80 per Equity Share
These metrics provide valuable information for investors to assess the valuation of the company and make informed investment decisions. The EPS indicates the earnings generated per share, while the P/E ratio helps investors gauge how the stock is priced relative to its earnings. The RoNW reflects the company’s profitability in relation to its net worth, and the NAV represents the net value of the company’s assets per share.
EMS Limited’s peer group, promoters, registrar, and lead managers. This information can be valuable for investors seeking to understand the company’s context and the parties involved in its IPO.
Peer Group:
VA Tech Wabag Limited is mentioned as a peer company to EMS Limited. Peer companies are often considered for benchmarking and comparison purposes to assess a company’s relative performance within its industry.
Company Promoters:
Mr. Ramveer Singh and Mr. Ashish Tomar are the promoters of EMS Limited. Promoters play a significant role in the company’s management and ownership.
Registrar:
The registrar for EMS Limited’s IPO is KFIN Technologies Limited. They are responsible for processing IPO applications, allotment, and other related activities.
EMS Limited Contact Details
EMS LIMITED
701, DLF Tower A, Jasola
New Delhi-110025, India
Phone: +91 8826696627
E-mail: cs@ems.co.in
Website: www.ems.co.in
IPO Allotment Status Check:
Investors interested in checking the EMS Limited IPO allotment status can do so on the KFintech website through the provided allotment URL.
Lead Managers (Merchant Bankers):
Khambatta Securities Limited is mentioned as the lead manager or merchant banker for the EMS Limited IPO. These institutions assist in the IPO process, including pricing, marketing, and managing regulatory compliance.
Investors considering participation in the EMS Limited IPO should review the company’s prospectus, conduct due diligence, and stay informed about the latest developments and updates related to the IPO. It’s essential to make investment decisions based on a comprehensive understanding of the company’s fundamentals and the prevailing market conditions.
Naren is a finance graduate who is passionate about cryptocurrency and blockchain technology. He demonstrates his expertise in these subjects by writing for cryptoetf.in. Thanks to his finance background, he is able to write effectively about cryptocurrency.