The Street is bullish on EMS as it exclusively undertakes project tenders initiated by government or semi-government entities, financially backed by the World Bank and the Asian Development Bank
EMS, a company offering water and sewage infrastructure solutions, debuted on the exchanges with a 33.6% premium over the issue price. The IPO received a strong response from investors with an overall subscription of 75.29 times. The proceeds from the IPO will be used to fund working capital requirements and other corporate purposes. The company has executed 67 projects and has an order book of Rs 1,775 crore.
"The strong performance helps them to take on more projects with the help of internal accruals only. As a result, we remain positive on the company and advise investors who are allotted the shares to hold them from a medium-to-long-term perspective," said Shreyansh Shah, Research Analyst, StoxBox.
Ahead of the listing, EMS shares are fetching a premium of Rs 82 in the unlisted market. At the upper price band of Rs 211, EMS shares are expected to list at a strong premium of 39%.