EMS IPO: GMP, subscription status review, other details. Apply or not?
EMS IPO: The initial public offering (IPO) of EMs Limited opened for subscription on 8th September 2023 and it will remain open for bidding till 12th September 2023. Waste water management service provider company has fixed EMS IPO price band at ₹200 to ₹211 per equity share and it aims to raise ₹321.24 crore from this initial offer. As per the EMS IPO subscription status, the public issue got fully subscribed on day one of bidding. As per the market observers, grey market is also showing bullish sentiments in regard to the public offer. They said that shares of EMS Limited are available at a premium of ₹125 in grey market today.
EMS IPO GMP today
According to market observers, EMS IPO grey market premium (GMP) today is ₹125, which is ₹25 lower from the opening premium of the public issue in unlisted stock market. They said that public issue has received strong response from the subscribers that augurs well for the public issue. They said that secondary market sentiment is also positive and hence grey market is expected to remain strong in regard to EMS IPO.
EMS IPO subscription status
As per the EMS IPO subscription status available on BSE website, the public issue has been subscribed 3.77 times whereas its retail portion has been subscribed 4.82 times. Its NII portion has been filled 6 times while its QIB portion got subscribed 0.09 times after day one of bidding.
EMS IPO details
EMS IPO will remain open for bidders till 12th September 2023. EMS IPO allotment date is most likely on 25th September 2023. KFin Technologies has been appointed as official registrar of the public issue. The public issue is proposed for listing on BSE and NSE and expected EMS IPO listing date is 21st September 2023.
EMs IPO review
Giving ‘subscribe’ tag to EMS IPO, Ventura said, “”One notable aspect of their business strategy is their flexibility in project execution. In addition to independently undertaking projects, they actively engage in joint ventures and partnerships with other infrastructure and construction companies. These collaborations are instrumental in achieving pre-qualification, both in technical and financial aspects, during the bidding process. Successful joint ventures enable them to leverage the specific technical skills and qualifications of their partners, thereby enhancing their ability to execute complex projects effectively.”
Arihant Capital has given ‘subscribe’ tag to the initial offer citing, “EMS Ltd has a strong order book of INR 17,449.2mn (~3.3x of FY23 revenue) as of 15th Jul 2023 shows potential revenue visibility and is expected to grow at a CAGR of 30% over the medium term. The company is currently bidding under INR 5bn projects and expected to bid INR 15bn to INR 20bn projects going forward. The majority of projects are funded by World Bank which assures payments and working capital days stand around 90 days. The company is very selective in bidding for high-margin projects and the conversion ratio is around 10%-15%. The higher margins project led to maintaining an EBITDA margin of 30% and a PAT margin of 20% going forward. The majority of IPO funds will be utilized for working capital requirements of projects indicating strong execution of projects over the medium term. At the upper band of INR 211, the issue is valued at an EV/EBITDA of 6.2x based on FY23 EBITDA and PE of 9.1x based on FY23 EPS of INR 23.2. We are recommending “Subscribe for Long Term” for this issue.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Updated: 09 Sep 2023, 02:16 PM IST
