The allotment for the initial public offer (IPO) of water treatment and wastewater management company EMS Ltd is likely to be finalised today, September 15. Investors can check their allotment status on the issue's registrar Kfin Technologies' website as well as on BSE.
The ₹321 crore IPO was open for subscription between September 8 and September 12 at a price band in the range of ₹200-211 per share.
The issue was overall subscribed 76.21 times as the portion for qualified institutional bidders (QIBs) was booked about 150 times, while the non-institutional investors' category was subscribed to 84.39 times. The quota reserved for retail investors was subscribed to 30.55 times during the bidding process.
The firm is likely to be listed on both BSE and NSE on September 21.
Here's how you can check the allotment status:
1) Go to the website.
2) Select ‘Equity’ and then from the dropdown, select the issue name.
3) Enter your application number and PAN card number.
4) Click on the "Search" button.
In a similar way, you can also check on its registrar's website.
1) Go to the website of Kfin Technologies.
2) Click on ‘Company Selection’ and then select the IPO name.
3) Now, enter your PAN, application number, DP / Client ID or account number / IFSC.
4) Click on ‘Search’.
The status will only appear after allotment if the details are entered correctly. Bidders who could not get allotment in the IPO may see the initialisation of refunds on Monday, September 18. Others, who would be allotted shares, may see the credit of shares in the Demat accounts by Wednesday, September 20.
The issue comprised of a sale of fresh equity shares amounting to ₹146.24 crore and an offer-for-sale (OFS) of up to 82.94 lakh equity shares amounting to ₹175 crore by promoter Ramveer Singh. Proceeds from the fresh issue will fund working capital requirements and other general corporate purposes. The company will not receive any proceeds from the OFS portion.
Incorporated in December 2010, EMS is engaged in the business of providing water and wastewater collection, treatment, and disposal services for government authorities and local bodies. It has its own civil construction team and employs over 57 engineers, supported by third-party consultants and industry experts. The company has executed 67 projects over the past 13 years and has an order book of ₹1,775 crore. Most of its projects have been executed across Bihar, Uttarakhand, Madhya Pradesh, Rajasthan and Haryana.
For the year ending March 2023 (FY23), the company's net profit rose over 37 percent to ₹108.62 crore, compared to ₹79.04 crore in FY22. Meanwhile, its total revenue from operations jumped 49.5 percent to ₹538.16 crore for FY23 against ₹359.85 crore for FY2021-22.
Over FY20-23 as well, EMS reported a healthy financial profile characterised by robust profitability and lower debt on the balance sheet. EMS posted an 18.2 percent CAGR rise in consolidated operating revenue while consolidated EBITDA increased by 15.8 percent in this period. However, the EBITDA margin contracted by 181bps during the period and reported PAT increased by 14.1 percent CAGR during FY20-23.
Khambatta Securities was the sole manager to the issue.
Most brokerage firms had recommended subscribing to the issue on the back of its growth potential and infra-based niche business model, strong fundamentals and healthy financials. However, negative cash flows, heavy dependence on government projects and working capital requirements are key risks for the firm.
EMS GMP today
Ahead of the listing, the company's shares in the grey market are trading at a premium of ₹98, indicating a strong listing for the issue at over 45 percent premium.
However, one must note that the grey market premium is only an indicator of how the company's shares are performing in the unlisted market and can change quickly.