EMS Limited IPO: Check Review, Analysis, GMP and Subscription Details

IPO subscription for EMS Limited IPO started on 8th September 2023. EMS is offering a fresh issue of equity shares aggregating up to Rs. 146.24 crores, and an offer for sale (OFS) of equity shares aggregating up to Rs. 175 crores. 

The combined total IPO Issue size is Rs. 321.24 crores. 

You can bid in the IPO till 12th September 2023 (the official cut-off time is 5 PM), but you need to bid early, possibly before 3:00 pm. Here is the complete IPO bidding process for new IPO investors.

Ramveer Singh and Ashish Tomar are the promoters of EMS Limited.

You will find all the relevant details like GMP, Issue size, price, subscription data, peers & company analysis in the article. The analysis will help you make informed IPO investment decisions in EMS Limited IPO.

EMS Limited IPO Details

ParticularsIPO Details
IPO Opening date8th September 2023
IPO Closing date12th September 2023
IPO PriceRs. 200 to Rs. 211 per share
Lot size70 shares 
Issue sizeRs. 321.24 Cr 
No. of fresh sharesXX (TBD) shares aggregating to Rs. 146.24 crores
Offer for Sale 8,294,118 shares aggregating to Rs. 175 crores
Listing onBSE and NSE

You can check our guide to know about other upcoming IPOs in 2023.

EMS Limited IPO Timetable

ParticularsIPO Details
IPO Opening date8th September 2023
IPO Closing date12th September 2023
Basis of Allotment date15th September 2023
Credit of Share 20th September 2023
Listing date 21st September 2023

EMS Limited GMP

GMP data collected from various sources like reputed financial websites, news channels, stockbrokers and IPO blogs is under. 

RememberGrey Market Price (GMP) shows you an indicative price of EMS Limited upon listing. You should take precautions because GMP is not an official price and only an indicative value.

8th September 2023Rs. 125
7th September 2023Rs. 120
6th September 2023Rs. 120
5th September 2023Rs. 112

EMS Limited Issue Size

The Fresh Shares are for an aggregate amount of up to Rs. 146.24 Crs. The OFS portion of the IPO is an aggregate amount of Rs. 175 crores.

And the Total Issue Size = Rs. 321.24 crores. The IPO bidding process can be found here.

EMS Limited Overview

EMS Limited is in the business of 

  • Sewerage solution provider
  • Water Supply System (WSSPs)
  • Water and Waste Treatment Plants (WWSP)
  • Electrical Transmission and Distribution.

The main focus of the company is on Water Supply Systems and Water and Waste Treatment Plants. 

EMS Limited bids for tenders issued by CPWD, State Governments and Urban Local Bodies (“ULBs”) for developing WWSPs and WSSPs on an EPC or HAM basis.

EMS Ltd IPO - Business Operations

Their service scope includes design and engineering of the projects, procurement of raw materials, execution at the site with overall project management up to the commissioning of projects.

As of July 31, 2023, EMS Limited is operating and maintaining 18 projects including WWSPs, WSSPs, STPs & HAM aggregating of Rs. 1,74,492.00 lakhs & 5 O&M projects aggregating Rs. 9,928.00 lakhs. 

In the past, EMS Limited has executed 67 projects since 2010 across the states of Bihar, Uttarakhand, Madhya Pradesh, Rajasthan, and Haryana.

EMS Limited is currently handling 18 Projects & 5 O&M Projects together with 23 projects.

The company promoters Mr. Ram Veer Singh and Mr. Ashish Tomar are qualified professionals with individual experience of more than 3 & 1 decade respectively in the water & waste-water treatment industry. 

EMS Limited has a team of 61 engineers in-house who are supported by third-party consultants and industry experts to ensure compliance and quality standards laid down by the industry and government agencies & departments.

Industry Overview

The construction sector contributed around 8.4% to the national GVA (at constant price) in FY23. 

An increase in Infrastructure demand and government initiatives shows the potential for catapulting India to the third-largest construction market globally

Share of key segments that contribute to construction spending

EMS Ltd IPO - Industry Analysis1

Over the long term, the outlook for the construction sector is favorable supported by continued Government spending on infrastructure. 

The Government has expanded the National Infrastructure Policy (NIP) during the Budget to 7,400 projects from 6,835 projects and announced plans for the National Monetization Pipeline and Development Finance Institution (DFI) to improve the financing of infrastructure projects

According to the Central Pollution Control Board (CPCB), the estimated wastewater generation was almost 39,600 million liters per day (MLD) in rural regions, while in urban regions it was estimated to be 72,368 MLD for the year 2020-21. 

The estimated volume is double in the urban cities is almost double that of the rural regions because of the availability of more water for sanitation which has increased standard of the living

In India, the sewage generation in the urban region was 72,368 MLD for the year 2020-21, while the installed sewage treatment capacity is 31,841 MLD. 

Sewage generation and treatment capacities (MLD)

EMS Ltd IPO - Industry Analysis

Government Initiatives for Waste Water Management

  • Jawaharlal Nehru National Urban Renewal Mission
  • Atal Mission for Rejuvenation and Urban Transformation (AMRUT) 
  • Namami Gange programme
  • Swachh Bharat Mission (Urban)

Of the total sewage generation only 28% i.e. 20,236 MLD was treated which implies that 72% of the wastewater is left untreated and is disposed of in various water bodies like rivers, lakes, or underground water. 

There is some capacity addition like 4,827 MLD sewage treatment has been added but a gap between the wastewater generation and treatment of 35,700 MLD i.e. 49% still remains.

EMS Limited Subscription Data

Below you can find the day-wise subscription data of the EMS Limited IPO. 

Subscription data shows the number of times the IPO is subscribed overall and also under each category. 

Day – 1
8th September 2023
Day – 2
11th September 2023
Day – 3
12th September 2023

EMS Limited Promoter Details

Ramveer Singh and Ashish Tomar are the promoters of EMS Limited. Collectively, they both hold 4,59,80,000 equity shares, which constitute 94.61% of the issued, subscribed and paid-up equity share capital of the company.

4 people along with M/s Sumit Construction Private Ltd form part of the promoter group. The promoter group collectively holds 10,20,000 equity shares, equal to 2.10% of the pre-issue shares issued.

In short, people forming part of the promoter and promoter group jointly hold 4,70,00,000 equity shares, equivalent to 96.71% of the equity share capital of the company. 

EMS Limited Financials

Key financials of EMS Limited Ltd. for the last 3 completed financial years FY23, FY22, and FY21 are under.

DetailsFY- 2023FY- 2022FY- 2021
Total AssetsRs. 638.71 crRs. 502.55 crRs. 378.31 cr
Total IncomeRs. 543.27 crRs. 363.09 crRs. 336.18 cr
Profit/ Loss After TaxRs. 108.66 crRs. 78.92 crRs. 71.91 cr
Net WorthRs. 487.83 crRs. 380.17 crRs. 301.91 cr
Other Equity (including retained earnings)Rs. 440.83 crRs. 368.42 crRs. 290.16 cr
Total BorrowingRs. 45.39 crRs. 3.71 crRs. 3.16 cr

The net worth of EMS Limited grew from Rs. 301.91 cr in FY 2021 to Rs. 487.83 cr in 2023. In the past three years, EMS Limited’s long-term borrowings have shot from around Rs. 3.16 cr to Rs. 45.39 cr.

During the same period, the total income of EMS Limited has grown in the last three years from Rs. 336 cr to Rs. 543 cr. And the PAT grew from Rs. 71.91 cr to Rs. 108.66 cr during the last 3 years. 

EMS Limited Peer Comparison

VA Tech Wabag Limited is the only listed company that is engaged in a similar line of business as that of EMS Limited.

The below table shows a comparison between EMS Limited and other listed companies that are engaged in a similar business.

EMS Limited23.1522.31%103.80
VA Tech Wabag Limited 36.8713.860.69%253.20

EMS Limited Objects of the Issue

EMS Limited proposes to utilize the Net Proceeds from the Issue for 

1. Funding of working capital requirements of the Company

The business of EMS Ltd is working capital intensive. They fund the majority of working capital requirements from their 

  • internal accruals
  • net worth
  • financing from various banks 
  • unsecured loans

EMS Limited intends to utilize an estimated amount of Rs. 101.24 crores from the Net IPO Proceeds towards the funding of working capital requirements for FY 2024.

The projected working capital requirements for Fiscal 2024 is Rs. 532.64 cr and for Fiscal 2025 is Rs. 662.60 Cr.

2. For General corporate purposes

The rest of the IPO amount will be spent on general corporate purposes subject to such utilization not exceeding 25% of the Net Proceeds, in compliance with the SEBI ICDR Regulations.

Is EMS Limited IPO Worth Investing?

Let us first understand the key risks and then the benefits of investing in EMS IPO. 

Key risks to consider are –

  • EMS Ltd is dependent 100% on Government projects that are awarded through competitive bidding
  • There are penalties or liquidated damage clauses for delay in the completion of a project
  • EMS Ltd has been black-listed in the past by the two government bodies
  • Civil litigation pending by the company of Rs. 130.99 cr
  • Business operations are intensive and involve long gestation period
  • dependent on our design and engineering teams

EMS Limited has an in-house designing, engineering and execution team with industry experience and an established track record. They have a strong order book of projects across India and a stable financial performance for the last 3 years.

Their net worth grew from Rs. 301.91 cr in FY 2021 to Rs. 487.83 cr in 2023. In the past three years, EMS Limited’s long-term borrowings have shot from around Rs. 3 cr to Rs. 45.39 cr.

During the same period, the total income of EMS Limited has grown in the last three years from Rs. 336 cr to Rs. 543 cr. And the PAT grew from Rs. 71.91 cr to Rs. 108.66 cr during the last 3 years. 

After 3-4 days, post-EMS Limited IPO is complete you can check here the allotment status.

About Rajan Dhawan

Rajan has covered personal finance and investing for over 5 years. Previously, he was in the IT field for 8 years after completing his MCA but his deep interest in personal finance led him to become an investing expert. He is passionate about investing, stocks, startups, and cryptos.

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