EMS Limited today announced the price band of Rs. 200-211 per equity share for its upcoming IPO. Set to open on Friday, 8th September 2023, the IPO for aggregating Rs. 14,624.00 Lakhs through fresh issue of Equity Shares & 82,94,118 equity shares under Offer for Sale by the Promotor, Mr. Ramveer Singh. The company's issue will open for the anchor portion on Thursday, 7th September 2023, and will close for the public on Tuesday, 12th September 2023. At the upper price band, the company's IPO size would be Rs. 320-321 crores.
Proceeds from the fresh issue will fund working capital requirements and other general corporate purposes. Khambatta Securities Limited is the sole Book Running Lead Manager to the Issue, while KFin Technologies Limited is the Registrar to the Issue.
The company already completed the pre-IPO placement of 16,00,000 equity shares at an issue price of Rs. 211, aggregating Rs 33.76 crore. Accordingly, the size of fresh issue was reduced to Rs 146.24 crore and an offer for the sale of 82.94 lakh shares by promoter Mr. Ramveer Singh. At present, Mr. Singh holds a 97.81% stake in the company.
Incorporated on December 21, 2010, EMS provides various services, ranging from EPC and O&M, in sewerage solutions, water supply systems, and wastewater schemes for government authorities and local bodies. Headquartered in Ghaziabad, the company offers water and sewerage infra solutions, including laying the sewerage network to building sewerage and water treatment plants in the states of Uttar Pradesh, Bihar, Uttarakhand and Rajasthan. With a net margin of around 20%, the company expects to continue focusing on only high-margin integrated projects. The company also undertakes Operations and Maintenance mandates for the projects it has executed.
EMS Ltd's 100% projects are works related to tenders floated by government or semi-government agencies funded through the World Bank. The company has executed 67 projects over the past 13 years and has an order book of Rs. 1745 crore, comprising 18 ongoing projects across WWTPs, WSSPs, EPS, and HAM segments. Most of its projects have been executed across Bihar, Uttarakhand, Madhya Pradesh, Rajasthan and Haryana.
The company's total revenues from operations stood at Rs. 538.16 crore for FY2022-23 against Rs. 359.85 crore for FY2021-22. The EBITDA for FY2022-23 stood at Rs. 149.01 crore (against Rs. 112.51 crore in FY2021-22), and PAT stood at Rs. 108.62 crore (against Rs. 79.04 crore in FY2021-22).