EMS Limited plans IPO launch in September to raise up to Rs 320 crore

Water and sewage infrastructure solutions company EMS Limited plans to raise Rs 300 crore to Rs 320 crore through its upcoming initial public offering (IPO). The company aims to launch its public issue in September subject to market conditions and regulatory approvals.

Here is everything you need to know about the EMS Limited public issue —

Details of EMS Limited IPO

EMS Limited filed draft papers with the Securities and Exchange Board of India (SEBI) in March this year to raise funds upto Rs 180 crore through IPO. The firm completed the pre-IPO placement of 16 lakh equity shares at an issue price of Rs 211, aggregating Rs 33.76 crore. The public issue will comprise an offer for sale of 82.94 lakh shares by promoter Ramveer Singh and a fresh issue of Rs 146.24 crore. EMS Limited has received SEBI’s nod to proceed with the public issue.

The lead manager for the EMS Limited IPO will be Khambatta Securities Limited. KFin Technologies Limited will be the registrar of the public issue.

Proceeds from the fresh issue will be used for general corporate purposes and to fund working capital requirements.

What EMS Limited chairman said about the public issue?

Ramveer Singh, Founder, Chairman and Executive Director of EMS Limited said, “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.”

EMS Limited’s financials

EMS Limited’s total revenue from operations jumped from Rs 359.85 crore for FY 2021-22 to Rs 538.16 crore in FY 2022-23. The Ghaziabad-headquartered company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) for FY 2022-23 stood at Rs 149.01 crore as opposed to Rs 112.51 crore in FY 2021-22. The EBITDA margin stood at 20.18 per cent for FY 2022-23.

Profit After Tax (PAT) margin was 20.18 per cent. The PAT increased from Rs 79.04 crore in FY 2021-22 to Rs 108.62 crore FY 2022-23.

EMS Limited's projects

EMS Limited provides water and sewerage infrastructure solutions such as laying the sewerage network for construction of water treatment and sewerage in Bihar, Rajasthan, Uttar Pradesh and Uttarakhand. The company expects to maintain its focus on high-margin integrated projects. EMS also undertakes operations and maintenance for the projects it has executed. The water and sewage infrastructure solutions firm has 18 ongoing projects across WWTPs, WSSPs, EPS and HAM segments with a total order value of Rs 1,775 crore.