EMS IPO opens on September 8; Price, GMP and other details 

The initial public offering of EMS Limited is set to open on September 8, and will close on September 12, with a total of Rs 321.24 crore worth of shares on offer. 

Price and GMP

The IPO's price range is Rs 200-211 per share and will be listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The IPO has a Grey Market Premium (GMP) of Rs 112 as of September 5, according to Topsharebrokers, with an estimated listing price of Rs 323. The face value of each share is Rs 10, and the lot size for investors is 70 shares. The IPO consists of an offer for sale (OFS) of 8,294,118 shares of Rs 10 each, amounting to Rs 175 crore.

Reservations 

QIB (qualified institutional buyers) have been allotted 50 per cent of the net offering, while NII (non-institutional investors or high-net-worth individuals) have 15 per cent of the offer reserved, and retail investors are offered 35 per cent of the total offer.

Financial performance 

The company's total assets increased, rising from Rs 502.55 crore in FY22 to Rs 638.72 crore in FY23. EMS Limited's revenue rose from Rs 363.10 crore in FY22 to Rs 543.28 crore in FY23, indicating improved sales and business performance. Profitability improved as well, with the profit after tax (PAT) increasing from Rs 78.93 crore in FY22 to Rs 108.67 crore in FY23. The company's net worth, reserves, and surplus witnessed healthy growth, with net worth increasing from Rs 380.18 crore to Rs 487.83 crore and reserves and surplus growing from Rs 368.43 crore to Rs 443.45 crore. Total borrowing surged from Rs 3.71 crore in FY22 to Rs 45.40 crore in FY23.

About the company

EMS Limited, originally known as EMS Infracon and established in 2012, is a prominent player in the field of water and wastewater management services. The company specialises in offering comprehensive solutions for water and wastewater collection, treatment, and disposal. Their services cover a wide spectrum, including sewage solutions, water supply systems, water and waste treatment plants, electrical transmission and distribution, road and allied works, and the operation and maintenance of wastewater scheme projects (WWSPs) and water supply scheme projects (WSSPs) for government bodies.

Should you subscribe? 

According to Ravi Singh, a market expert, EMS Limited is dependant on government contracts. Singh further said, "EMS Limited company has a unique business model in the field of water and wastewater management sector. The company’s track record is strong with diversified portfolio. However, the company got blacklisted in the past and had major dependency on govt contracts. We advise investors to stay away from this IPO for now."