EMS LIMITED

EMS LIMITED

EMS LIMITED - IPO DETAILS 

IPO Date 

Sep 08, 2023, to Sep 12, 2023 

Price Band 

₹200 to ₹211 per share 

Lot Size 

70 Shares 

Issue Size 

₹321.24 Cr 

Allotment Date 

15 September 2023 

Listing Date 

21 September 2023 

 

Company Overview 

Incorporated in 2012, EMS Limited, formerly known as EMS Infracon, specializes in offering services related to the collection, treatment, and disposal of water and wastewater. 

The company offers a diverse range of services, including sewerage solutions, water supply systems, water and waste treatment plants, electrical transmission and distribution, road construction, and related infrastructure projects. Additionally, they undertake the operation and maintenance of Wastewater Scheme Projects (WWSPs) and Water Supply Scheme Projects (WSSPs) on behalf of government authorities. WWSPs encompass Sewage Treatment Plants (STPs), Sewage Network Schemes, and Common Effluent Treatment Plants (CETPs). Meanwhile, WSSPs involve Water Treatment Plants (WTPs), pumping stations, and the installation of water supply pipelines. 

EMS Limited maintains an in-house civil construction team, which is bolstered by a workforce of over 57 engineers. Furthermore, they collaborate with third-party consultants and industry experts to support their operations and projects.  

 

Objective of the IPO 

Here are a few quick reasons why EMS Limited going public:  

1. Funding the company's everyday operational expenses and financial needs. 

2. Allocating funds for overarching corporate needs and objectives. 

 

Company Financials 

Period Ended 

Total Assets 

Total Revenue 

Profit After Tax 

Net Worth 

Reserves and Surplus 

Total Borrowing 

31-Mar-21 

378.31 

336.18 

71.91 

301.91 

290.16 

3.16 

31-Mar-22 

502.55 

363.10 

78.93 

380.18 

368.43 

3.71 

31-Mar-23 

638.72 

543.28 

108.67 

487.83 

443.45 

45.40 

 

Key Performance Indicator 

Market Cap (₹ Cr.) 

1171.7 

EPS (Rs) 

23.15 

ROCE 

28.26 

ROE 

22.27 

P/E (x) 

10.78 

Debt/Equity 

0.09 

 

Pros 

  1. The complexity, time investment, and resource-intensive nature of designing and engineering projects can be attributed to the distinctive project requirements they entail. To ensure that clients receive a comprehensive range of services at a reduced cost without compromising quality, the company continually enhances its technical capabilities. 

  1. The company maintains an internal team for designing, engineering, and project execution. This strategic approach enables the company to accurately submit project bids in accordance with specific requirements and minimizes its reliance on outsourcing design and engineering tasks to external consultants. 

  1. The majority of the company's projects are funded by the World Bank through local state government entities. This arrangement provides the company with reliable cash flows and ensures timely payments, eliminating the risk of bad debts. Consequently, the company can pursue additional projects and enhance its profit margins. 

  1. The company has adopted a scalable and asset-light business model that centers around development management, joint development agreements, and joint ventures. This approach necessitates significantly lower upfront capital expenditure when compared to a direct project ownership approach. 

Cons 

  1. The company relies on substantial working capital to sustain its operations. An inability to secure these necessary cash flows could have a detrimental impact on its day-to-day business activities and overall operational efficiency. 

  1. Many of the agreements that the company has entered into as part of its business operations include penalties or liquidated damage clauses that come into play in the event of project completion delays. These clauses specify predetermined financial consequences for such delays. 

  1. When bidding on government projects and executing awarded projects, the company relies on joint venture partners. If these joint venture partners fail to fulfill their obligations, it may result in additional financial and performance responsibilities for the company, potentially affecting its earnings. 

 

How to Apply for this IPO 

1. Go to https://ipo.adityatrading.in/ 

2. Enter your Client ID 

3. Enter the OTP received in your registered mobile number. 

4. Choose the IPO and click on apply button. 

5. Enter the UPI ID, Quantity, and Cut off the price. 

6. Click on submit button 

7. Confirm the mandate request received on your phone by entering the UPI Pin. 

You can also watch our youtube video on “How to Apply on IPO” by clicking on the link “https://www.youtube.com/watch?v=1qOI8dCpl1I&ab_channel=ATS

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This report is only for the information of our customers. Recommendations, opinions, or suggestions are given with the understanding that readers acting on this information assume all risks involved. The information provided herein is not to be construed as an offer to buy or sell securities of any kind. ATS and/or its group companies do not as assume any responsibility or liability resulting from the use of such information.

 

 

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