EMS IPO – Details and Review

EMS Limited, which used to be called EMS Infracon, is getting ready for an IPO (Initial Public Offering). This means they are going to start selling shares of their company to the public, and you can buy them starting from September 8, 2023. EMS Limited is an important company in the business of managing water and wastewater. Their IPO has caught the eye of many investors who are interested in this field. In this article, we will give you all the details about the EMS IPO, including important dates, the good and not-so-good things about it, and whether you should consider buying their shares or not.

EMS IPO Details

IPO Open September 8, 2023
IPO Close September 12, 2023
IPO Price ₹200 – ₹211
Face Value ₹10
IPO Size ₹321.24 Cr
Listing At BSE, NSE
Lot Size 70

IPO Objects of EMS IPO

The objects of the IPO issue contains both Offer for Sale (OFS) and fresh issue.

  • Under OFS, the amount goes to selling share holders.
  • Fresh issue would be used for the following objectives:
    • Funding of working capital requirements of the company; and
    • General corporate purposes.

EMS IPO Timetable (Tentative)

EMS IPO opens on September 8, 2023, and closes on September 12, 2023.

IPO Open Date Friday, September 8, 2023
IPO Close Date Tuesday, September 12, 2023
Basis of Allotment Friday, September 15, 2023
Initiation of Refunds Monday, September 18, 2023
Credit of Shares to Demat Wednesday, September 20, 2023
Listing Date Thursday, September 21, 2023
Cut-off time for UPI mandate confirmation 5 PM on September 12, 2023


To evaluate the value of the EMS IPO, let’s look at some important financial numbers.

  1. IPO Price Range: EMS is offering its shares at a price between Rs 200 and Rs 211 per share.
  2. Price-to-Earnings (P/E) Ratio – FY23: Based on the earnings per share (EPS) of Rs 23.15 for the previous fiscal year (FY23), the P/E ratio is approximately 9x. This ratio helps us understand how much investors are willing to pay for each rupee of the company’s earnings.
  3. Price-to-Earnings (P/E) Ratio – Last 3 Years: If we take the weighted EPS for the last three years, which is Rs 42.54, the P/E ratio comes out to be approximately 5x. This metric provides a broader view of the company’s earnings over a longer period.
  4. Comparison with Peers: When comparing EMS to its industry peers, a listed company like VA Tech Wabag has a P/E ratio of 14x. While it’s not ideal to base a valuation solely on one company, it’s worth noting that EMS Limited’s IPO price range, with a P/E ratio ranging from 9x to 5x, appears to be attractively priced in comparison.

In summary, considering the P/E ratios, EMS Limited’s IPO seems to be reasonably priced. However, it’s crucial to look at other factors, such as the company’s financial health, growth prospects, and market conditions, before making an investment decision.


Financial Year ending / Period ending (Amt in Crores)
Particulars FY20 FY21 FY22 FY23
Assets 308.08 378.31 502.55 641.41
Revenue 332.36 336.18 363.10 543.28
Profit After Tax 72.43 71.91 78.93 108.85
Net Worth 229.99 301.91 380.18 487.83
Reserves and Surplus 218.24 290.16 368.43 443.45
Total Borrowing 14.80 3.16 3.71 45.40

Ratnaveer Precision Engineering IPO Analysis and Review

Reasons to Consider Investing in the EMS IPO:

  1. Diverse Portfolio: EMS Limited offers a wide range of services related to water and wastewater management, including solutions for sewage, water supply, treatment plants, and electrical distribution. This diversity makes them well-suited to serve various government authorities and organizations.
  2. Proven Track Record: EMS Limited has a history of successfully managing and maintaining multiple projects in five different states. This track record demonstrates their experience and expertise in the field.
  3. Experienced Team: The company boasts its own team of civil construction experts and employs over 57 engineers. They also collaborate with third-party consultants and industry professionals. This experienced workforce is likely to contribute to the efficient execution of projects.
  4. Reasonable P/E Ratio: The Price-to-Earnings (P/E) ratio for EMS Limited’s IPO is 9x, which suggests that the IPO is priced reasonably compared to its market capitalization. This valuation may be appealing to potential investors.

EMS IPO Risk Factors to Consider:

  1. Legal Proceedings: EMS Limited, along with its promoters, directors, and affiliated companies, is currently facing legal proceedings. Unfavorable outcomes in these legal matters could have a significant impact on the company’s business, financial health, and overall performance.
  2. Past Blacklisting: The company has previously been blacklisted, which raises concerns about its reputation and its ability to secure future projects.
  3. Penalty Clauses: Many of EMS Limited’s agreements include penalty clauses or liquidated damages for project delays. This presents a financial risk if projects are not completed on time, potentially leading to substantial financial penalties.
  4. Dependency on Government Contracts: The majority of EMS Limited’s revenue comes from contracts awarded by government authorities, often funded by entities like the World Bank through Central and State Governments. Any reduction in budget allocation to this sector could result in fewer projects available for bidding, affecting the company’s business.
  5. Technology Adaptation: EMS Limited relies on traditional technologies for wastewater treatment and water supply projects. If the company struggles to adapt to new technologies or changing government requirements, it could impact its ability to compete for projects in this sector.
  6. Competitive Bidding: The company participates in competitive bidding processes conducted by government authorities. Failing to qualify, compete effectively, or secure future projects may have adverse effects on the company’s business and financial performance.
  7. Capital-Intensive Industry: EMS Limited operates in a capital-intensive industry with lengthy project execution timelines. Securing substantial financing is crucial for its operations, and the inability to obtain additional financing on favorable terms could hinder its growth and profitability.


EMS IPO Review – Should you invest or avoid?

EMS Limited IPO presents a promising opportunity in the water and wastewater management sector. With diversified portfolio and strong track record, EMS IPO share price comes with attractive valuations.

Investors should look at the complete risk factors including company got blacklisted in the past, dependency on govt contract etc.,

High Risk Investors can invest in such IPO with medium to long term perspective.


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