Ashish Tomar, Co-Founder and Managing Director of EMS Limited, said the sewerage solutions company currently has an order book of around Rs 1,750 crore, which is split evenly in five states — Uttar Pradesh, Bihar, Uttarakhand, Rajasthan and Maharashtra. The Rs 1,750-crore order book will be executed in the next two-and-a-half to three years.

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In an exclusive conversation with CNBC-TV18, Tomar said: "As of now, we do not have any plans to diversify, because there's ample amount of work in sector in which you operate." He said the company will try to maintain the growth that it has shown in the past.

Tomar said the fresh issue of about Rs 150 crore is going to be for the working capital and the company will also raise around Rs 175 crore from the offer for sale (OFS). The shares are being sold by EMS Chairman and Executive Director Ramveer Singh. Once the IPO is over, the shareholding of the company promoters would be upwards of 70 percent.

"The only debt that we currently have is about Rs 45 crore that was raised for the hybrid annuity model project that we bid and secured in Mirzapur and Ghazipur towns for building sewage treatment plants. So, that is the model of the project. We had to raise capital from banks," he stated.

Elaborating on the company, he said: "The industry size would be difficult to guess, but I can tell you that the budget for the ministries that we have worked in for last year was in excess of Rs 3 lakh crore. Our major focus area is sewage projects but we also carry out water supply projects and our focus would be divided in the ratio of around 80 percent in sewage and 20 percent in water supply."

The initial public offer (IPO) of EMS Limited opened for subscription on September 8, and will close on September 12. Ahead of the issue opening, the sewerage solution provider mopped up Rs 96.37 crore via the anchor book.

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 Asia (Singapore) Pte are the anchor investors. The participation of six investors helped the anchor book get fully subscribed.

EMS Limited has fixed a price band of Rs 200-211 per share, and investors can bid for a minimum of 70 shares in one lot and in multiples thereafter.

The IPO comprises a fresh issue of equity shares, aggregating up to Rs 146 crore, which was cut from Rs 180 crore earlier by EMSL, and an OFS of up to 82.94 lakh equity shares.

Under the OFS, Chairman Ramveer Singh, who is also the co-founder and promoter of the company, will sell 82.94 lakh shares. Singh currently holds a 97.81 percent stake in the company.

On the financial performance front, for the last three fiscals, EMSL has on a consolidated basis posted a total revenue and a net profit of Rs 336.18 crore and Rs 71.91 crore, respectively in FY21, Rs 363.10 crore and Rs 78.93 crore in FY22, and Rs 543.28 crore and Rs 108.67 crore in FY23.

EMS is in the business of sewerage solutions, water supply systems, 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 and bodies.

(Edited by : Shoma Bhattacharjee)

First Published:Sept 8, 2023 5:50 PM IST