EMS Limited has queued up as the third company to go public this week after Ratnaveer Precision Engineering and Jupiter Life Line Hospitals. The EMS offer will open for subscription on September 8, with a price band of Rs 200-211 per share.
The sewerage solutions provider intends to mop up Rs 321.24 crore from the initial public offering which comprises a fresh issuance of shares worth Rs 146.24 crore and an offer-for-sale of 82.94 lakh shares, amounting to Rs 175 crore at the upper price band, by promoter Ramveer Singh.
Before filing the red-herring prospectus, the company raised Rs 33.76 crore through a private placement (pre-IPO placement) of 16 lakh shares at the upper price band. Accordingly, the size of the fresh issue has been reduced by Rs 33.76 crore, from Rs 180 crore earlier, to Rs 146.24 crore.
EMS Limited, or the erstwhile EMS Infracon, plans to use the net fresh issue proceeds in working capital requirements amounting to Rs 101.24 crore, and the rest in general corporate purposes.
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The anchor book will be opened for a day on September 7, while the public issue will close on September 12.
The company that provides water and wastewater collection, treatment, and disposal services has reserved half of the issue size for qualified institutional buyers, 15 percent for high net-worth individuals, and the remaining 35 percent for retail investors.
On the financial front, it has recorded a 37.7 percent on-year growth in consolidated profit at Rs 108.7 crore for the financial year ended March FY23, with revenue growing 49.5 percent to Rs 538.2 crore and EBITDA (earnings before interest, tax, depreciation and amortisation) increasing 32.4 percent to Rs 149 crore, but EBITDA margin dropped to 27.7 percent in FY23, from 31.3 percent in previous year.
Also read: Jyoti CNC Automation files papers for Rs 1,000-crore IPO
The basis of allotment of IPO shares will be finalised by September 15 and the equity shares will be transferred to demat accounts of eligible investors by September 20. The refunds will be credited to bank accounts of unsuccessful investors by September 18.
EMS will make debut on the BSE and the NSE on September 21, as per the IPO schedule.
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