EMS IPO final day | Issue bought 75.28 times, retail portion booked 29.79 times

EMS IPO sees robust response from investors

Investors seem be bullish on the EMS IPO as the maiden public issue has subscribed 75.28 times, with investors buying 81.21 crore equity shares against the offer size of 1.07 crore shares on September 12. Qualified institutional buyers have bought 153.02 times the allotted quota, which is 50 percent of the total offer size, while the portion set aside for high networth individuals, 15 percent of the IPO size, was subscribed 82.32 times.

Retail investors also looked aggressive in terms of bidding, buying 29.79 times the reserved portion, which is 35 percent of issue size.

The initial public offering of EMS was subscribed 15.03 times till the second day of bidding, September 11.

The water and wastewater collection, treatment, and disposal services provider intends to raise Rs 321.24 crore via public issue that was opened on September 8. The price band for the offer is Rs 200-211 per share.

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The IPO comprises a fresh issue of shares worth Rs 146.24 crore, and an offer-for-sale (OFS) of 82.94 lakh equity shares worth Rs 175 crore by promoter Ramveer Singh.

The Ghaziabad-based company will make use of net fresh issue proceeds for working capital requirements amounting to Rs 101.24 crore, and the remaining for general corporate purposes.

The basis of allotment of IPO shares will be finalised by the company in consultation with NSE on September 15, and the equity shares will be credited to demat accounts of eligible investors by September 20. The refunds will be transferred to bank accounts of unsuccessful investors or funds will be unblocked from ASBA (amount in the specified bank account) by September 18.

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EMS will start trading on the BSE and NSE with effect from September 21, as per IPO schedule.

Its IPO shares were available at around 57 percent premium over the upper price band, in the grey market, analysts said on anonymity. The grey market is an unofficial platform where IPO shares can be bought and sold till the listing.