EMS Ltd. to raise between Rs. 300-Rs. 320 crore through IPO

EMS Limited plans to raise Rs. 300 crore to Rs. 320 crore through its upcoming IPO, subject to regulatory approvals and market conditions.

About the Business :
Headquartered in Ghaziabad, the company offers water and sewerage infra solutions, including laying the sewerage network to building sewerage and water treatment plants in the states of Uttar Pradesh, Bihar, Uttarakhand and Rajasthan. With a net margin of around 20%, the company expects to continue focusing on only high-margin integrated projects. The company also undertakes Operations and Maintenance mandates for the projects it has executed.

Commenting on the future plans, Mr. Ramveer Singh, Founder, Chairman & Executive Director, EMS Ltd, said, “Ever since inception, we have focused on high-margin business, slower growth in the order book. However, given the vast opportunity in the country coupled with the Government’s focus on creating and maintaining efficient and quality water and sewerage infrastructure across towns and cities, we feel confident of expanding our share in the industry going forward. This IPO will give us a boost in meeting our working capital needs and improve our eligibility for high-value projects.”

Incorporated on December 21, 2010, EMS provides various services, ranging from EPC and O&M, in sewerage solutions, water supply systems, and wastewater schemes for government authorities and local bodies.

IPO Plan:
In March 2023, EMS Ltd. filed draft papers with SEBI to raise funds through an initial public offering aggregating Rs. 180.00 crore. Now, the company has completed the pre-IPO placement of 16,00,000 equity shares at an issue price of Rs. 211, aggregating Rs 33.76 crore. Accordingly, the size of fresh issue has been reduced to Rs 146.24 crore and an offer for the sale of 82.94 lakh shares by promoter Ramveer Singh. Proceeds from the fresh issue will fund working capital requirements and other general corporate purposes. At present, Singh holds a 97.81% stake in the company.
The company has already received SEBI’s approval to proceed with this initial public offering.

Financials:
The company’s total revenues from operations stood at Rs. 538.16 crore for FY2022-23 against Rs. 359.85 crore for FY2021-22. The EBITDA for FY2022-23 stood at Rs. 149.01 crore (against Rs. 112.51 crore in FY2021-22), and PAT stood at Rs. 108.62 crore (against Rs. 79.04 crore in FY2021-22). The EBITDA margin stood at 20.18% for FY2022-23, while the PAT margin was 20.18%.

Lead Manager & Registrar to the IPO
Khambatta Securities Limited is the Lead Manager to the Issue, while KFin Technologies Limited is the Registrar to the Issue.

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