The Rs. 320-crore IPO of EMS Limited opens today for subscription. The company comes out with a price band of Rs. 200-211. Market lot 70 shares. The issue comprises a fresh issue of Rs. 146.24 crore and 82.94 lakh shares under Offer for Sale by the Promotor, Mr. Ramveer Singh. The IPO will close on September 12. At the upper price band, the company’s IPO size would be Rs. 320-321 crore.
Proceeds from the fresh issue will fund working capital requirements and other general corporate purposes. Khambatta Securities Limited is the sole Book Running Lead Manager to the Issue, while KFin Technologies Limited is the Registrar to the Issue.
The company already completed the pre-IPO placement of 16,00,000 equity shares at an issue price of Rs. 211, aggregating Rs. 33.76 crore. Accordingly, the size of fresh issue was reduced to Rs. 146.24 crore and an offer for the sale of 82.94 lakh shares by promoter Ramveer Singh.
As part of the IPO process, sewerage solutions company EMS on Thursday mopped up Rs. 96.37 crore from anchor investors, who are NAV Capital VCC - NAV Capital Emerging Star Fund, Abakkus Diversified Alpha Fund, Saint Capital Fund, Meru Investment Fund PCC - CELL 1, BofA Securities Europe SA - ODI, and Morgan Stanley Asia (Singapore) Pte. It has finalised allocation of 45,67,476 shares to anchor investors, at Rs 211 a share.
The firm that provides water and wastewater collection, treatment, and disposal services will make use of net fresh issue proceeds mainly for working capital requirements amounting to Rs. 101.24 crore, and the remaining for general corporate purposes.