Stellar Listing: EMS Limited debuts at a premium of 33% at Rs 282 per share on the BSE

21 September 2023
3 mins read
by Angel One
The company's revenue grew by 50% YoY in FY23, while the net profit grew by 38% YoY during the same period.
Stellar Listing: EMS Limited debuts at a premium of 33% at Rs 282 per share on the BSE

EMS Limited, engaged in the business of providing water and wastewater collection, treatment, and disposal services, debuted with a 33% premium, at Rs 281.55 per share on the BSE. On the NSE, the stock opened at Rs 282, marking a 34% increase from its initial public offering price of Rs 211 per share.

As of the time of writing, the stock is trading at Rs 274.35 on the BSE, with intraday highs and lows of Rs 288.70 and Rs 271.40, respectively. The current market capitalisation of the company stands at Rs 1526.82 crore.

The company plans to primarily utilise the proceeds from the new issue to fund the company’s working capital requirements and for general corporate purposes.

Company profile 

Established in 2012 as EMS Infracon and later rebranded as EMS Limited, the company specializes in providing comprehensive water and wastewater management solutions.

It offers a wide range of services, including sewerage solutions, water supply systems, water and waste treatment facilities, electrical transmission and distribution, road construction, and associated works. The company boasts its own in-house civil construction team comprising more than 57 engineers, bolstered by the expertise of third-party consultants and industry professionals.

As per the latest update, the company manages and maintains a portfolio of 13 projects, including WWSPs, WSSPs, STPs, and HAM projects, with a combined value of Rs. 1,38,909.00 lakhs. Additionally, they oversee 5 ongoing O&M projects valued at Rs. 9,928.00 lakh, representing the unbilled amount as of February 28, 2023, spanning five states.

Let’s recap the subscription history of the company: 

On the final day of the IPO window on September 12, 2023, the IPO witnessed a subscription rate of 76.21 times. The public issue received an overwhelming response, with the retail category subscribed 30.55 times, the QIB category achieving a subscription rate of 149.98 times, and the NII category reaching a subscription rate of 84.39 times.

The company had attracted Rs 93.37 crore from various anchor investors, allocating 45.67 lakh equity shares at Rs 211 per share to anchor investors.

The IPO price range was set between Rs 200 and Rs 211, with a face value of Rs 10 per share and a lot size of 70 shares. The total size of the company’s IPO was Rs 321 Crore, and the final share issue price was fixed at Rs 211 each.

Following is the financial performance of the company:

Particulars FY21 (Rs Cr) FY22 (Rs Cr) FY23 (Rs Cr)
Revenue 336.18 363.10 543.28
Net Profit / (Loss) 71.91 78.93 108.67
Total Assets 378.31 502.55 638.72
Total Borrowings 3.16 3.71 45.40
Net Worth 301.91 380.18 487.83

The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. Considering the current market conditions the broader indices have slipped from their all-time high levels, investors who applied for listing gains have already earned 34% on the listing day alone and can choose to book the profit it has generated.

On the other hand, investors with a higher risk appetite may opt to hold the shares for the medium to long term, which is beneficial.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.