Many people may not be aware of EMS Limited; however, it is one of the top players in water and sewage infra development projects in India. As of FY2023, the water and sewage treatment market in India is worth $0.92 billion and it is slated to cross $1.54 billion by FY2028. The continuous depletion of freshwater resources is one of the main reasons behind this market growth. If you intend to invest in any of the leading infra development companies, you can consider investing in EMS Limited IPO. Read along to know more insights about the same.
Table of Content
IPO Details
Given below are the most important details of this upcoming IPO.
| IPO Opening Date | September 8, 2023 |
| Closing Date | September 12, 2023 |
| Listing Date | September 21, 2023 |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Total IPO Size | Rs. 321.24 crore approx. |
| Fresh Issue Size | Rs. 146.24 crore approx. |
| OFS Size | Rs. 175 crore approx. |
| Face Value | Rs. 10 per share |
| Price Range | Rs. 200 to Rs. 211 per share |
| Lot Size | 70 shares |
Also Read: How does an IPO work?
About the Company
EMS Limited, formerly known as EMS Infracon Pvt Ltd, has been involved in the business of offering pure drinking water, water treatment plants, wastewater collection and other disposal services since 2012. It offers sewerage solutions, electrical distribution, operation and water supply maintenance projects.
The company has a dedicated team of civil construction along with employment support from other third-party industry experts and consultants. Its line of services includes engineering execution, project designing, raw material procurement, overall project management and more.
Now, EMS Limited is launching its IPO to raise Rs. 321.24 crore from the public to fund its working capital requirements and for general corporate purposes. It will remain open from 8th to 12th September, 2023.
IPO Tentative Timetable
| Anchor Allocation Date | September 7, 2023 |
| IPO Opening Date | September 8, 2023 |
| IPO Closing Date | September 12, 2023 |
| Cut-off Time for UPI Mandate | 5 p.m. on September 12, 2023 |
| Basis of Allotment | Friday, September 15, 2023 |
| Date of Refund Initiation | Monday, September 18, 2023 |
| Credit of Shares to Demat | Wednesday, September 20, 2023 |
| Listing Date | Thursday, September 21, 2023 |
Read Also: Suraj Estate Developers IPO
IPO Lot size
| Application Type | Number of Lots | Amount |
| Minimum (retail investors) | 1 ( 70 shares) | Rs. 14,770 |
| Maximum (retail investors) | 13 ( 910 shares) | Rs. 192,010 |
| Minimum (S-HNI) | 14 ( 980 shares) | Rs. 206,780 |
| Maximum (S-HNI) | 67 ( 4690 shares) | Rs. 989,590 |
| Minimum (B-HNI) | 68 ( 4760 shares) | Rs. 10,04,360 |
Company Financials
Here is the financial summary of EMS Limited for the last three financial years (all figures in Rs. millions other than EPS).
| Parameters as Per the Year Ending On | 31st March 2022 | 31st March 2021 | 31st March 2020 |
| Total Assets | 50,255.34 | 37,831.32 | 30,808.15 |
| Total Liabilities | 12,143.08 | 7,623.68 | 7,809.27 |
| Total Expenses | 25,560.54 | 23,799.18 | 23,405.78 |
| Total Revenue | 36,309.84 | 33,618.42 | 33,235.99 |
| Profit After Tax | 7,892.83 | 7,191.14 | 7,243.41 |
| EBITDA | 11,575.95 | 10,437.99 | 10,277.11 |
| Earnings Per Share (Basic and Diluted) | 67.27 | 61.24 | 61.62 |
Also Read: IPO investment strategy: Tips for investing in an IPO
Strengths
Know the strengths of EMS Limited to make an informed decision:
- EMS Limited has an in-house team dedicated specifically to designing, engineering and task execution. They have a key focus on designing capabilities for the company’s core projects like hydraulic calculations, process descriptions, design codes, etc. It enables them to bid correctly and ensure quality and timely service.
- The company has years of industry expertise and strong execution capabilities. Since the company was established, it has executed more than 50 projects successfully. Their strong execution and project management expertise enable the timely completion of projects while maintaining quality engineering.
- The company has secured several projects under its belt funded by the World Bank. Over the last decade, the World Bank has constantly supported the government’s efforts in a seamless supply of clean drinking water in rural areas. The majority of its projects are funded by the World Bank and state governments, leading to sufficient cash flow and minimal bad debts.
- EMS Limited has secured a robust order book with 13 ongoing projects and 5 O&M projects. Their timely execution, quality engineering and financial strengths will help them to successfully bid and win projects in future.
Risk Involved
Every business has certain internal and external risk factors. Listed below are some notable risk factors involved with EMS Limited:
- The promoter and directors are parties to certain lawsuits and legal proceedings. Therefore any adverse decision on such legal proceedings can impact the profitability and operations of its overall business.
- The company has been blacklisted by two government bodies but the same was withdrawn with a retrospective effect.
- The majority of the agreements this company has entered into levy heavy penalties in case it fails to comply with the terms mentioned in these agreements.
Summary
EMS Limited is one of the top companies engaged with water development projects like the construction of water treatment plants, water supply systems, wastewater control, etc. It has a massive order book and the majority of its projects are funded by an esteemed organisation like the World Bank.
This company is launching an IPO with a price band of Rs. 200 to Rs. 211 per share to acquire funds of up to Rs. 321.24 crore. The public offer will last till September 12, 2023. If you have plans to invest in EMS Limited IPO, ensure to go through its Red Herring Prospectus (RHP) carefully.
