EMS Limited IPO Closed

About EMS Limited

Incorporated in 2012, EMS Limited previously known as EMS Infracon, are in the business of providing Sewerage solutions, Water Supply System, Water and Waste Treatment Plants, Electrical Transmission and Distribution, Road and Allied works, operation and maintenance of Wastewater Scheme Projects (WWSPs) and Water Supply Scheme Projects (WSSPs) for government authorities/bodies.

WWSPs include Sewage Treatment Plants (STPs) along with Sewage Network Schemes and Common Effluent Treatment Plants (CETPs) and WSSPs include Water Treatment Plants (WTPs) along with pumping stations and laying of pipelines for the supply of water. The treatment process installed at STPs and CETPs is compliant with the Ministry of Environment, Forest and Climate Change of India norms and the treated water can be used for horticulture, washing, refrigeration, and other process industries.

The Company bids for tenders issued by CPWD, State Governments, and Urban Local Bodies for developing WWSPs and WSSPs on an EPC or Hybrid Annuity Model (HAM) basis.

It has an in-house team for designing, engineering, and construction, and the team of 61 engineers is supported by third-party consultants and industry experts to ensure compliance and quality standards laid down by the industry and government agencies & departments.

As of July 31, 2023, The company is operating and maintaining 18 projects including WWSPs, WSSPs, STPs & HAM aggregating to Rs. 1,74,492.00 lakhs & 5 O&M projects aggregating to Rs. 9,928.00 lakhs.

Revenue from operations – Domestic region wise (%)

Issue size:

The Rs. 321.24 crores public offer of EMS limited comprises fresh equity issue worth 146.24 crores and OFS worth 175 crores.

Objects of the issue and proceeds utilization:

Financial information and other valuation metrics

Risk factors to consider:

100% revenue comes from government entities: 100% of the revenue is generated from business transactions with government entities or agencies. Any change in the governments, in the markets in which they operate, changes in policies, and/or their inability to recover payments therefrom in a timely manner or at all, would adversely affect their operations and revenues which in turn would adversely affect profitability. In addition, they may be subject to additional regulatory or other scrutiny associated with commercial transactions
with government-owned or controlled entities and agencies. 100% of revenue is generated through government tenders so the Company’s trade receivables which constituted nearly 23% and 43% respectively in the last 2 years are receivables from governments.

Capital-intensive nature of business: The industry in which the operates is capital-intensive in nature, and involves relatively long gestation periods. Their substantial financing for business operations and the failure to obtain additional financing on terms commercially acceptable to us may adversely affect their ability to grow and our future profitability.

Higher Trade Receivables and Inventories: Trade Receivables and Inventories form a substantial part of the company’s current assets and net worth. the trade receivable and inventories on an aggregate basis constitute Rs. 22,830.08 Lakhs, Rs. 21,195.12 Lakhs, and Rs. 12,871.52 Lakhs, which is 46.70%, 51.10% & 42.93% respectively of total current assets respectively. Failure to manage the same could have an adverse effect on their net sales, profitability, cash flow, and liquidity.

IPO Schedule

How to apply to the EMS Limited IPO?

You can apply for the EMS Limited IPO using any supported UPI app by following two steps:

• Enter your bid on Kite
• Accept the UPI mandate on your phone

On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.

How to check the allotment status for EMS Limited IPO?

You can check the allotment status for the EMS Limited IPO on the website of the Registrar and Transfer agent. Alternatively, you can also check the allotment status on the NSE website.