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Last Updated on December 26, 2023 by BFSLTeam BFSLTeam

EMS Limited IPO

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.

IPO Details

Given below are the most important details of this upcoming IPO.

IPO Opening DateSeptember 8, 2023
Closing DateSeptember 12, 2023
Listing DateSeptember 21, 2023
Issue TypeBook Built Issue IPO
Listing AtBSE, NSE
Total IPO SizeRs. 321.24 crore approx.
Fresh Issue SizeRs. 146.24 crore approx.
OFS SizeRs. 175 crore approx.
Face ValueRs. 10 per share
Price RangeRs. 200 to Rs. 211 per share
Lot Size70 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 DateSeptember 7, 2023
IPO Opening DateSeptember 8, 2023
IPO Closing DateSeptember 12, 2023
Cut-off Time for UPI Mandate 5 p.m. on September 12, 2023
Basis of AllotmentFriday, September 15, 2023
Date of Refund Initiation Monday, September 18, 2023
Credit of Shares to DematWednesday, September 20, 2023
Listing DateThursday, September 21, 2023

Read Also: Suraj Estate Developers IPO

IPO Lot size

Application TypeNumber of LotsAmount
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 On31st March 202231st March 202131st March 2020
Total Assets50,255.3437,831.3230,808.15
Total Liabilities12,143.087,623.687,809.27
Total Expenses25,560.5423,799.1823,405.78
Total Revenue36,309.8433,618.4233,235.99
Profit After Tax7,892.837,191.147,243.41
EBITDA11,575.9510,437.9910,277.11
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.

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