The INR320-crore initial public offering (IPO) of water and wastewater treatment company EMS Limited was subscribed 3.77 times by the end of its first day, Monday. The IPO, which opened for bidding on Friday, September 8, has been met with a strong response from retail and non-institutional investors. The IPO will close on Tuesday, September 12.
EMS Limited set a price band of INR200-211 for the issue, with a market lot of 70 shares. The issue comprises a fresh issue of INR146.24 crore (approx. $17.6 million) and an offer for sale (OFS) of up to 82.94 lakh (approx. 8.3 million) shares by promoter Mr. Ramveer Singh. At the upper price band, the company's IPO size would reach INR320-321 crore.
The non-institutional investors category was subscribed to six times, and the retail individual investors part was subscribed 4.82 times. However, the portion reserved for qualified institutional buyers was subscribed only 9%.
The company intends to use proceeds from the fresh issue to 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 serves as the registrar.
Prior to the IPO, EMS completed a pre-IPO placement of 16,00,000 equity shares at an issue price of INR211, aggregating INR33.76 crore. This reduced the size of the fresh issue to INR146.24 crore and an offer for sale of 82.94 lakh shares by promoter Ramveer Singh.
As part of the IPO process, EMS raised INR96.37 crore from anchor investors including 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 (NYSE:MS) Asia (Singapore) Pte. The company allocated 45,67,476 shares to these investors at INR211 a share.
The firm plans to use the net fresh issue proceeds mainly for working capital requirements amounting to INR101.24 crore, with the remainder for general corporate purposes. EMS is set to list its shares on both BSE and NSE on Thursday, September 21.
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