Water and sewerage infra player EMS Ltd on Thursday said it plans to launch an initial public offering (IPO) in the next month to raise Rs 300-320 crore.
Also, the company said that it has completed the pre-IPO placement round and raised Rs 33.76 crore through it, thereby reducing the fresh issue size in the upcoming initial public offering.
In the pre-IPO placement round, the Ghaziabad-based firm issued 16 lakh equity shares at an issue price of Rs 211 each, the company said in a statement.
Accordingly, the size of the fresh issue has been reduced to Rs 146.24 crore from Rs 180 crore planned earlier. In addition, there will be an offer for sale (OFS) of 82.94 lakh shares by promoter and founder Ramveer Singh.
At present, Singh holds 97.81 per cent stake in the company.
In March 2023, EMS Limited filed draft prospectus with capital markets regulator SEBI to raise funds through maiden public issue and has already obtained SEBI’s approval to go ahead with this IPO.
The proceeds from the fresh issue will be used for working capital requirements and for other general corporate purposes.
“EMS Limited plans to raise Rs 300 crore to Rs 320 crore through its upcoming IPO, subject to regulatory approvals and market conditions,” the company said.
Ramveer Singh, Founder, Chairman and Executive Director, EMS Limited said, “This IPO will enable us to meet the working capital needs of the company and improve its eligibility for high value projects.
Commenting on future plans, Singh said, “Since inception, we have focused on high-margin business, slow growth in order book. However, there is a vast opportunity in the country to streamline and maintain The focus of the government is on keeping Given the quality water and sewerage infrastructure in towns and cities, we are confident of increasing our share in the industry going forward.”
The company provides water and sewerage infra solutions, including laying sewerage networks, building sewerage and water treatment plants in Uttar Pradesh, Bihar, Uttarakhand and Rajasthan.
It has executed 67 projects in the last 13 years and has an order book of Rs 1,775 crore, which includes 18 ongoing projects.
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