EMS Limited IPO: All you need to know

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The initial public offering (IPO) for EMS Limited is set to open for subscription from 8 September 2023 to 12 September 2023. The set IPO price range is Rs. ₹200 to ₹211 per share with a face value of ₹10 each. 

 The EMS IPO has a lot size of 70 shares with a minimum investment of ₹14,770. The listing date of the IPO is 21 September 2023 (expected). The total IPO size is ₹321.24 Crores, including a ₹148.24 Crore fresh issue and ₹175 crore Offer-for-Sale (OFS).

In the Offer for Sale (OFS), the company's promoter and founder Ramveer Singh will sell 82.94 lakh shares. Currently, Singh owns 97.81% of the company's shares.

EMS Limited IPO: Business Overview

Established in 2012, EMS Limited, originally named EMS Infracon, specializes in water and wastewater management services. They offer solutions for sewage, water supply, water and waste treatment, electricity distribution, roads, and related tasks. They also handle projects like Sewage Treatment Plants and Water Treatment Plants, including their associated infrastructure, for government entities. With its own construction team, EMS Limited boasts more than 57 engineers and collaborates with external experts and consultants.

EMS Limited IPO: Details

IPO Open and Close DateSep 8, 2023 to Sep 12, 2023
IPO price range₹200 to ₹211 per share
Lot Size70 Shares
IPO size₹321.24 Cr
Basis of AllotmentFriday, 15 September 2023
Credit of Shares to DematWednesday, 20 September 2023
Listing DateThursday, 21 September 2023

(Source: DRHP)

EMS Limited IPO: Reservations

QIB Shares OfferedNot more than 50% of the Net Offer
NII (HNI) Shares OfferedNot less than 15% of the Net Offer
Retail Shares OfferedNot less than 35% of the Offer

(Source: DRHP)

Khambatta Securities Limited has been appointed as the book-running lead manager for the EMS Limited IPO, while KFIN Technologies Limited will serve as the registrar to the issue. The shares are expected to be listed on both BSE and NSE, with a tentative listing date of September 21, which falls on a Thursday.

EMS Limited IPO: Financial Performance

ParticularsFY23(in Rs Crores)FY22(in Rs Crores)FY21(in Rs Crores)
Total Revenue543.28363.09336.18
Profit After Tax108.6778.9271.91
Current Assets488.82414.75299.79
Current Liabilities79.48108.55660.86

(source: DRHP and RHP)

The Current Assets have increased from ₹ 414.75 Crores in March 2022 to ₹ 488.82 Crores in March 2023, with an increase of 17.85% indicating overall Asset performance.

In terms of revenue, the Company has experienced significant growth in operating revenue resulting in an increase in Total revenue, rising from ₹ 363.09 Crores in FY22 to ₹ 363 Crores in FY23, with a conspicuous increase of 49.62%. Moreover, Net profits have also seen an increase, going up from ₹ 78.92 Crores in FY22 to ₹ 108.67 Crores in FY23, which has increased by 37.69% over the past year.

Key Performance IndicatorValues
EPS (Rs)23.15
P/E (x)10.78

EMS Limited IPO: Strengths

  • World Bank Funded Projects.
  • Ease in accessibility of funding due to good credit ratings from banks and other financial agencies.
  • A well-known name in the market.
  • Limited Experienced Players in the Sector.
  • The company has successfully finished over 50 projects thanks to its skilled and experienced team.

EMS Limited IPO: Risks

  • More competitors and new companies entering the market
  • Some major companies, like L&T in the water sector, are also active in this specific business area.
  • Projects getting delayed because of factors like lockdowns, strikes, and management issues.
  • Projects take longer to finish because of changes in government.

EMS Limited IPO: Peer Comparison

Name of the CompanyRevenue (In Crore)PAT (In Crore)EPS ( in Rs)P/E RatioMcap (In Crore)
EMS Limited543.28108.6723.1510.78. 
VA Tech Wabag Limited934.51-1,119.5036.8713.863,010.02

(Source: BSE Results)