EMS Ltd, a provider of water and wastewater collection, treatment, and disposal services, has secured Rs 96.37 crore ($13 million) via its anchor book ahead of its Initial Public Offering (IPO) set to commence on Friday, September 8, 2023. The sewerage solutions company's anchor book was fully subscribed on Thursday with the participation of six investors.
The anchor investors include 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. As per the filing with exchanges, EMS has finalized the allocation of 45,67,476 equity shares at an issue price of Rs 211 per share to these investors.
The anchor book is part of the qualified institutional buyers (QIB) category. Half of the offer is reserved for QIBs and within this category, up to 60 percent is set aside for the anchor book. The remaining 15 percent of the total issue is reserved for high net-worth individuals, while retail investors are allocated 35 percent. The IPO will remain open until September 12.
The company aims to raise a total of Rs 321.24 crore from its IPO. This includes a fresh issuance of shares worth Rs 146.24 crore and an offer-for-sale of 82.94 lakh shares amounting to Rs 175 crore at the upper price band by promoter Ramveer Singh.
EMS plans to use the net fresh issue proceeds primarily for working capital requirements amounting to Rs 101.24 crore, with the remainder going towards general corporate purposes. The firm had previously raised Rs 33.76 crore in a pre-IPO placement round which led to a reduction in fresh issue size from the initially planned Rs 180 crore.
The company's operations span across Uttar Pradesh, Bihar, Uttarakhand, and Rajasthan where it provides infra solutions including the construction of sewerage and water treatment plants. Khambatta Securities is the sole book running lead manager to the issue and shares of the company will be listed on BSE and NSE.
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