Sewerage solution provider EMS Limited’s initial public offering (IPO) opened for subscription today. The bidding for the IPO will go on till September 12. As of 11:48 am on September 8, the IPO was subscribed 0.35 times.
Through this issue, the company is aiming to raise Rs 321 crore. Of this, fresh offer would be worth Rs 146 crore while Rs 175 crore has been fixed for offer for sale. According to the details provided by the company, the funding would be used to meet working capital requirements and general corporate purposes.
Here are the other details available about EMS IPO:
Advertisement
1) Price Band: The company has set the price band of Rs 200-211 for this issue.
2) IPO Lot Size: The minimum lot in this issue has been set at 70 shares. Investors can buy the IPO in lots.
3) Listing and allotment date: The allotment of shares is expected to be finalised by September 15 and the stocks are expected to be listed on September 21.
4) IPO Registrar: KFIN Technologies Limited has been appointed as the registrar for the issue
Company’s financials
As per the data compiled by Anand Rathi Research Team, the consolidated profit after tax of the company stood at Rs 108 crore in FY23, increasing from Rs 78 crore in FY22. In this period, the sales of the company grew by 49.55 per cent.
Advertisement
Before the issue, the shareholding of promoters stood at 96.7 per cent. Post the listing, the company has informed that the shareholding will go down to 72.6 per cent.
Commenting on the valuation of the company, Anand Rathi’s IPO note said, “At the upper price band company is valuing at P/E of 10.7x FY23 earnings with a market cap of Rs 11,717 million post issue of equity shares and return on net worth of 22.31 per cent.”
