EMS Ltd, a prominent player in the water and sewerage infrastructure sector, announced on Thursday that it has secured Rs 96.37 crore (1 crore = 10 million) from anchor investors. This funding comes one day prior to the commencement of the firm's Initial Public Offering (IPO), which is set to start on Friday.
The company allocated 45.67 lakh (1 lakh = 100,000) equity shares to six entities at Rs 211 each, marking the upper end of the price band. The anchor investors include Abakkus Diversified Alpha Fund, Saint Capital Fund, Meru Investment Fund, Bofa Securities Europe, Morgan Stanley (NYSE:MS) Asia Singapore Pte, and NAV Capital VCC- NAV Capital Emerging Star Fund.
The IPO consists of a fresh issue of equity shares worth Rs 146.24 crore and an Offer For Sale (OFS) of 82.94 lakh shares by promoter and founder Ramveer Singh. Singh currently holds a significant 97.81 per cent stake in the company.
In a pre-IPO placement round, EMS Ltd had raised Rs 33.76 crore, resulting in a reduction in fresh issue size to Rs 146.24 crore from the initially planned Rs 180 crore. At the upper price band, the company’s IPO size stands at Rs 321 crore.
The proceeds from the fresh issue will be utilized to fund working capital requirements and for other general corporate purposes.
Khambatta Securities is serving as the sole book running lead manager to the issue. Following the IPO, shares of EMS Ltd will be listed on both BSE and NSE.
EMS Ltd provides water and sewerage infrastructure solutions, including laying sewerage networks and constructing water treatment plants in Uttar Pradesh, Bihar, Uttarakhand, and Rajasthan.
In a related note, Cholamandalam Securities released an IPO report on EMS, highlighting that the fresh issue of shares is worth Rs 146.24 crore. The company has conducted a pre-IPO placement, allocating a total of 16,00,000 Equity Shares at an issue price of Rs. 211 per Equity Share. This pre-IPO placement resulted in a fund inflow of Rs. 33.76 Crores.
The OFS tranche encompasses a total of 82,94,118 shares, each with a face value of ₹10, culminating in an aggregate value of ₹175 crore. These shares are being divested by the promoter Mr Ramveer Singh.
Given the current urban growth estimates, the gap between wastewater discharge and operational treatment capacity stands tall at 45,499 MLD, which presents a significant opportunity for wastewater treatment companies like EMS Ltd.
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