EMA Partners IPO sees over 10 times subscription on Day 2, QIB undersubscribed

The fresh issue funds will be utilised for augmenting leadership team, and upgrading the existing IT infrastructure

The initial public offering of EMA Partners, the executive search firm, continued to receive healthy response from retail and non-institutional investors, but not from qualified institutional buyers even on the second day of bidding, i.e. January 20.

The issue was subscribed 10.17 times so far on Monday, as investors applied for 4.45 crore equity shares against the offer size of 43.84 lakh shares via 38,479 applications, the subscription data available on the NSE showed.

Retail investors bought 17.76 times their reserved portion, and non-institutional investors picked 9.6 times their allotted quota, while the part set aside for qualified institutional buyers was subscribed just 0.02 times.

The Mumbai-headquartered company that offers leadership hiring solutions intends to raise Rs 76.01 crore via maiden public issue that consists of fresh issue of Rs 66.14 crore worth shares and an offer-for-sale of shares worth Rs 9.87 crore by existing shareholders. The price band for the offer is Rs 117-124 per share.

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EMA Partners already mobilised Rs 21.65 crore by allotting 17.46 lakh shares to 10 institutional investors via anchor book on January 16. Whiteoak Capital, Negen Undiscovered Value Fund, India Max Investment Fund, Radiant Global Fund, and Saint Capital Fund were some of investors participated in the anchor book.

The fresh issue funds will be utilised for augmenting leadership team, and upgrading the existing IT infrastructure. Further, it will repay some borrowings through IPO proceeds, and the remainder funds will be used for general corporate purposes and unidentified inorganic acquisitions.

The public issue will close on January 21 and the share allotment will get finalised by the company in consultation with merchant banker Indorient Financial Services on January 22. The trading in equity shares will commence on the NSE Emerge, effective January 24.

EMA Partners IPO shares traded at around 80 percent premium over the upper price band in the grey market, the market observers said. The grey market is an unofficial platform wherein the IPO shares can be bought and sold till the listing. Investors generally look at grey market premium to know about the expected listing price.