Executive search firm EMA Partners India IPO undersubscribed on day 1

EMA Partners India IPO

The initial public offering of executive search firm EMA Partners India could not garner a healthy response from investors on its first day of bidding i.e. January 17, subscribing 0.48 times.

The company that offers specialised hiring solutions intends to raise Rs 76.01 crore via public issue, of which Rs 21.65 crore has already been mobilised from anchor investors on January 16.

The IPO comprises of fresh issue of 53.34 lakh shares worth Rs 66.14 crore and an offer-for-sale of 7.96 lakh shares worth Rs 9.87 crore by the existing shareholders. The price band for the offer, which closes on January 21, is Rs 117-124 per share.

Investors applied for 21.11 lakh equity shares against the offer size of 43.84 lakh shares via 1,643 applications, the subscription data available on the NSE showed.

Non-institutional and retail investors participated in the offer, so far, buying 62 percent and 77 percent shares of their allotted quotas, respectively, however, there were no bids from the qualified institutional buyers.

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EMA Partners which competes with Quess Corp and TeamLease Services among listed entities intends to utilise fresh issue proceeds for augmenting its leadership team, upgrading the existing IT infrastructure, repaying debt, general corporate purposes, and unidentified inorganic acquisitions, while the offer-for-sale money will go to the selling shareholders.

Indorient Financial Services is the book-running lead manager for the issue.