Blog

EMS IPO comprises a total of issue of 1,52,24,645 shares resulting in a total issue size of ₹321.24 crore. It consists both a fresh issue and an OFS component as detailed in the table below, EMS Limited ( earlier EMS Infracon) is engaged in the business of providing water and wastewater collection, treatment, and disposal services.

About EMS Limited:

• EMS Limited is headquartered in Delhi s and was established in 2012.
• It specializes in providing solutions for water and wastewater management. The company offers end-to-end services, from initial engineering and design to the construction and installation of water, wastewater, and domestic waste treatment facilities.
• EMS Limited services includes:
• ● Water Supply Systems
• ● Water and Waste Treatment Plants
• ● Electrical Transmission and Distribution
• ● Road and Allied works
• ● Operation and Maintenance of Wastewater Scheme Projects (WWSPs) and Water Supply Scheme Projects (WSSPs) for government authorities/bodies.
• Company bids for tenders issued by CPWD (Central Public Work Department), State Governments and Urban Local Bodies (“ULBs”) for developing Wastewater Scheme Projects (WWSPs) and Water Supply Scheme Projects (WSSPs) on EPC or HAM (Hybrid Annuity Model) basis. 100% revenue of the Company are generated through Government tenders/work/projects only.
• Services Offered:
  • Sewerage and their allied works including design, procurement, laying, jointing, testing, commissioning, operation and maintenance of new sewerage network as well as refurbishment of old/existing sewerage network.
  • Design, construction, operation and maintenance of Sewage Treatment Plants.
  • Design, construction, operation and maintenance of Sewage Pumping Stations.
  • Water supply works including design, procurement, laying, jointing, testing, commissioning, operation and maintenance of new water supply and distribution networks as well as construction of reservoir and refurbishment of old/existing water supply infrastructures.
  • Road & Allied works including construction of new road networks as well as repair/renovation of existing road networks.
  • Design and construction of power transmission and distribution infrastructure.
  • Design and construction of buildings and allied works.
  • Design, construction, operation and maintenance of public infrastructure facilities & utilities.
  • Designing, installing electricity transmissions.
  • Construction related work
• Mr. Ramveer Singh and Mr. Ashish Tomar are the company’s promoters

EMS IPO: Financials

Anchor Investors:

EMS IPO has made nil allotment to Mutual Funds.

EMS IPO: Salient Points

• The sector holds a lot of promise due to strong government focus through various welfare schemes such as Swachh Bharat Mission, Jal Jeevan Mission etc.
• As of July 2023, EMS’ order book stood at Rs. 1,845 cr resulting in good revenue visibility.
• From the IPO proceeds, 101.2 crore shall go to meet working capital requirements and the remaining funds will be used for general corporate purposes,
• The company did a Rs. 34 cr pre-IPO placement at Rs. 211 per share on 18th Jul 2023. This is at the same price at whoch shares are being given in IPO.
• As on July 31, 2023, EMS Limited is operating 18 projects & 5 O&M (Operation and maintenance) projects spread across more than five states.
• state wise revenue breakup for the financial year 2022-23:

• On FY23 earnings EMS IPO is valued at 11x P/E which looks reasonable to me.
• EMS Limited strictly has no comparable peers but Va Tech Wabag, a company with focus on desalination plants in water segment quotes at a PE of 61x. Recently listed Vishnu Prakash R Punglia, which is into water supply projects, is quoting at23.8 x its FY2023 earnings.
• I am likely to apply in the EMS IPO as the company has reported good margins, has good balance sheet and there is healthy growth visibility due to order book and tailwinds for the sector.
• GMP as reported on social media is around Rs. 125/-
• Please do your own diligence. There is good amount of risk in all equity investments.
• Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.