EMS Limited plans to raise ₹300-320 crore through its upcoming IPO, subject to regulatory approvals and market conditions. The company plans to launch the IPO in September.
In March, EMS had filed draft papers with SEBI to raise funds through an initial public offering aggregating ₹180 crore. Now, the company has completed the pre-IPO placement of 16 lakh shares at ₹211 a share, aggregating to ₹33.76 crore. Accordingly, the size of fresh issue has been reduced to ₹146.24 crore and an offer for the sale of 82.94 lakh shares by promoter Ramveer Singh.
The company has already received SEBI’s approval to proceed with IPO, it said in a statement. Khambatta Securities Limited is the Lead Manager while KFin Technologies is the Registrar to the issue.
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Proceeds from the fresh issue will fund working capital requirements and other general corporate purposes. The company has already received SEBI’s approval to proceed with this initial public offering.
The Ghaziabad-based company offers water and sewerage infra solutions, including laying the sewerage network to building sewerage and water treatment plants in Uttar Pradesh, Bihar, Uttarakhand and Rajasthan.
With a net margin of around 20 per cent, the company expects to continue focussing on only high-margin integrated projects. The company also undertakes operations and maintenance mandates for the projects it has executed.
Ramveer Singh, Founder, Chairman & Executive Director, EMS, said, “Ever since inception, we have focused on high-margin business, slower growth in the order book”.
However, given the vast opportunity in the country coupled with the government’s focus on creating and maintaining efficient and quality water and sewerage infrastructure across towns and cities, the company is confident of expanding its share in the industry going forward, he said. “This IPO will give us a boost in meeting our working capital needs and improve our eligibility for high-value projects,” he added.