EMS IPO subscribed 25.6x so far on Day 3. Check GMP and other details

The initial public offer (IPO) of EMS was subscribed 25.6 times so far on Day 3, driven by strong interest from retail and non-institutional investors. The issue closes today.
The category reserved for NIIs was subscribed the most at 54.69 times, followed by retail investors at 23.57 times. The QIB category was fully subscribed on the third day, after lagging for the first two days.

According to market analysts, the company's shares are trading at a premium of Rs 120 in the unlisted market.

The company has fixed a price band of Rs 200-211. About 50% of the offer is reserved for qualified institutional buyers (QIB), 15% for non-institutional investors, and the rest 35% for retail investors.

Analysts advised investors to subscribe to the IPO over fair valuations, robust order book, and strong execution capabilities with vast industry experience.

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

"This IPO will give us a boost in meeting the company's working capital needs and improve its eligibility for high-value projects," said the company's founder and promoter, Ramveer Singh.

EMS offers water and sewage infra solutions, including laying the network to build sewage and water treatment plants in the northern states of UP, Bihar, Uttarakhand, and Rajasthan.

The company executed 67 projects over the past 13 years and has an order book of Rs 1,775 crore, which includes 18 ongoing projects.

Some of the company's competitive strengths include a healthy order book, experienced management team, strong execution, and in-house designing capabilities.

On the risk front, EMS is heavily dependent on government projects and the business is working capital intensive, due to which high liquidity is required.

In FY23, total revenues from operations stood at Rs 538 crore. EBITDA for the same period was at Rs 149 crore, and PAT stood at Rs 108.62 crore.

Khambatta Securities is the sole book-running lead manager to the issue, while KFin Technologies is the registrar.