ems-ltd-ipo
Waste water management is one of the key aspects of having a comfortable modern life in any city or even in rural areas. The newest IPO offering, EMS Limited, is from a company belonging to this sector that offers water and waste collection, treatment, and disposal services.
EMS Limited IPO will open for subscription from 8th September 2023 to 12th September 2023.
Here are all the important details of EMS Limited, including investment price band, allotment date, GMP, benefits, risks of investing in this IPO, and more.
The key details of EMS Limited are as under.
The size of the IPO and different categories of the issue are:
| Category | Details |
| IPO Opening Date | 8th September 2023 |
| IPO Closing Date | 12th September 2023 |
| Listing | NSE, BSE |
| Issue Type | Book Built Issue IPO |
| Face value of shares | Re. 10 per share |
| IPO Price Band | Rs. 200 – Rs. 211 per share |
| IPO Size | Rs. 321 crores |
| Offer for Sale | Rs. 175 crores |
| Fresh Issue | Rs. 146 crores |
The important dates for EMS Limited IPO are highlighted below:
| Event | Date |
| Opening date | 8th September 2023 |
| Closing Date | 12th September 2023 |
| Allotment date | 15th September 2023 |
| Refund Date | 18th September 2023 |
| Share Credit Date | 20th September 2023 |
| Listing Date | 21st September 2023 |
Investors can subscribe to EMS Limited shares in pre-defined lots. The details of the lot sizes for this IPO are mentioned below:
| Category | Details |
| Investments in lots | Minimum – 1 lot Maximum – 13 lots |
| Investment amount | Minimum – Rs. 14,000 – 14,770 Maximum – Rs. 1,92,010 |
| Shares | Minimum – 70 Maximum – 910 |
Here’s the summary of reservation for different applicant categories in this IPO:
| Category of Investor | Reservation Percentage |
| Retail Individual Investor | 35% |
| QIB (Qualified Institutional Buyer) | 50% |
| NII (Non-Institutional Bidders) | 15% |
This IPO is a combination of Offer for Sale and Fresh Issue. The objectives of the IPO are mentioned below,
Established in 2012, EMS Limited, previously known as EMS Infracon, is actively involved in the provision of water and wastewater collection, treatment, and disposal services. The company specializes in offering comprehensive solutions, including Sewerage services, Water Supply Systems, Water and Waste Treatment Plants, Electrical Transmission and Distribution, Road and related infrastructure projects, as well as the operation and maintenance of Wastewater Scheme Projects (WWSPs) and Water Supply Scheme Projects (WSSPs) for government authorities and organizations. WWSPs encompass Sewage Treatment Plants (STPs) in conjunction with Sewage Network Schemes and Common Effluent Treatment Plants (CETPs), while WSSPs comprise Water Treatment Plants (WTPs) along with pumping stations and the installation of water pipelines for supply.
EMS Limited possesses its own skilled civil construction team, boasting a workforce of more than 57 engineers who are further supported by third-party consultants and industry experts.
As of March 24, 2023, EMS Limited is actively managing and maintaining a total of 13 projects, including WWSPs, WSSPs, STPs, and HAM projects, with a combined value of Rs. 1,38,909.00 lakhs. Additionally, the company is engaged in five Operation and Maintenance (O&M) projects, which collectively amount to Rs. 9,928.00 lakhs. This represents the unbilled amount as of February 28, 2023, and these projects are spread across five different states.
EMS Limited’s financials are given in the table below:
| Year | Total Assets (Rs. in cr) | Revenue from Operations (Rs. in cr) | Profit After Tax (Rs. in cr) | Basic EPS | Return on Net Worth |
| Mar-2023 | 639 | 538 | 109 | Rs.23.15 | 22.31% |
| Mar-2022 | 502 | 360 | 79 | Rs.67.27 | 20.79% |
| Mar-2021 | 378 | 331 | 72 | Rs.61.24 | 23.83% |
(Source: RHP)
Some of the key strengths of EMS Limited IPO that investors can take note of are
| Category | Details |
| Business model | They have an internal team for design, engineering, and execution, and their strong execution abilities are supported by significant industry experience.They have a Scalable and Asset Light Business Model supported by our Strong Financial Position and have participated in many World Bank funded projects. |
| Other merits | EMS Limited has a strong leadership team comprising seasoned promoters and experienced senior management personnel.EMS Limited utilize traditional construction and installation techniques for WWSP and WSSP projects. |
Here are some of the risks that investors of EMS Limited IPO should know:
| Category | Details |
| Business viability and profitability | The company’s revenue is significantly tied to government projects, rendering them susceptible to changes in government policies related to water and the environment, and as of March 31, 2023, their operating activities resulted in a negative cash flow.EMS Limited could face adverse effects from changes in sector-specific regulations, project delays, and payment disruptions, as well as challenges in finding suitable premises that may impact their operations, finances, and profitability. |
| Other concerns | They could encounter challenges due to changes in sector regulations and uncertainties related to the real estate market, land prices, economic conditions, and external factors beyond their control. |
As of September 7th, 2023, the grey market premium for the shares of EMS Limited IPO is Rs. 125 as per market observers. This means the shares are expected to list at a premium of Rs. 125 per share over the listing cap price of Rs. 211.
The revenue from operations of EMS Limited has increased by approximately 62% over the past 2 years. Furthermore, they also have a robust order book of Rs. 1845 crores. However, it is important to assess the overall financial performance of the company and compare it to its peers and as per industry standards before making the investment decision.
Investors can invest in this IPO through the Fisdom app.
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