In the pre-IPO placement round, the Ghaziabad-based firm issued 16 lakh equity shares at an issue price of Rs 211 apiece, the company said in a statement.
Water and sewerage infra player EMS Ltd on Thursday said it is planning to launch an initial public offering (IPO) in the next month to raise Rs 300-320 crore.
Also, the company said it has completed the pre-IPO placement round and raised Rs 33.76 crore through it, leading to a reduction in fresh issue size in the upcoming maiden public issue.
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In the pre-IPO placement round, the Ghaziabad-based firm issued 16 lakh equity shares at an issue price of Rs 211 apiece, 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. Besides, there would be an Offer of Sale (OFS) of 82.94 lakh shares by promoter and founder Ramveer Singh.
At present, Singh holds a 97.81 per cent stake in the company.
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In March 2023, EMS Ltd filed draft papers with capital markets regulator Sebi to raise funds through the maiden public issue and has already received Sebi’s approval to go ahead with this IPO.
Proceeds from the fresh issue will be used to fund working capital requirements and other general corporate purposes.
“EMS Ltd plans to raise Rs 300 crore to Rs 320 crore through its upcoming IPO, subject to regulatory approvals and market conditions,” the company said.
This IPO will give us a boost in meeting the company’s working capital needs and improve its eligibility for high-value projects, Ramveer Singh, Founder, Chairman and Executive Director of EMS Ltd, said.
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Commenting on the future plans, Singh said, “Ever since inception, we have focused on high-margin business, slower growth in the order book. However, given the vast opportunity in the country coupled with the Government’s focus on creating and maintaining efficient and quality water and sewerage infrastructure across towns and cities, we feel confident of expanding our share in the industry going forward”.
The company offers water and sewerage infra solutions, including laying the sewerage network to build sewerage and water treatment plants in Uttar Pradesh, Bihar, Uttarakhand and Rajasthan.
It has executed 67 projects over the past 13 years and has an order book of Rs 1,775 crore, comprising 18 ongoing projects.
