EMS IPO last day today: GMP, review, other key details. Should you subscribe?
₹146.24 crore and offer for sale (OFS) portion consists of 82,94,118 shares of ₹10, which aggregates to ₹175 crore sold by promoter selling shareholder Ramveer Singh. EMS IPO total issue size is ₹321.24 crores. EMS IPO has raised about ₹96.37 crore from anchor investors.
NAV Capital VCC-NAV Capital Emerging Star Fund, Abakkus Diversified Alpha Fund, Saint Capital Fund, Meru Investment Fund, Bofa Securities Europe, Morgan Stanley Asia (Singapore) PTE were among the domestic and foreign investors who took part in the anchor book issue. The net proceeds from the fresh issue will be utilised to fund working capital requirements of the company, and general corporate purposes. The company obtained ₹33.76 crore through a private placement (pre-IPO placement) of 16 lakh shares at the upper price band before submitting the red-herring prospectus.
As a result, the fresh issue's size was lowered from 180 crore to 146.24 crore, a reduction of ₹33.76 crore. Brokerage Choice Equity Broking in its report, stated that EMS IPO demands for a P/E multiple of 10.9x (to its FY23 earnings), which is less than the industry average. "Unsustainable expansion in the urbanisation seems to be putting pressure on the urban wastewater management, planning and treatment.
Backed by the government’s proactive policies, the domestic water & wastewater treatment market is expanding rapidly and has strong outlook in the medium term. With a strong focus on sewage treatment segment, EMS is rightly placed to benefit from the market expansion. Its robust order book & profitability, healthy balance sheet and demanded discounted valuation makes this issue attractive.
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