EMS IPO oversubscribed 15 times on Day 2 of bidding

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The initial public offering (IPO) of EMS Limited, a water and wastewater collection, treatment, and disposal services provider, was subscribed 15 times on the second day of bidding on September 11.

Investors bought 16.21 crore shares, which were 15.03 times higher compared to the issue size of 1.07 crore shares.

High net-worth individuals (HNIs) and retail investors seem to be more bullish on the company as they have bid 29.71 times and 16.59 times the allotted quota which is 15 percent and 35 percent of the issue size respectively.

Qualified institutional buyers (QIBs) have bought 67 percent shares of the reserved portion which is 50 percent of the IPO size.

The Rs 321.24-crore public issue comprises a fresh issuance of shares worth Rs 146.24 crore, and an offer-for-sale (OFS) of Rs 175 crore by promoter Ranveer Singh, at the upper price band.

The price band for the offer is Rs 200-211 per share.

The company has already raised Rs 96.37 crore on September 7, a day before the issue opening, via a fully booked anchor book. Saint Capital Fund, Abakkus Diversified Alpha Fund, Morgan Stanley Asia (Singapore), and BofA Securities Europe SA – ODI among six investors participated in the anchor book.

The company will utilise fresh issue proceeds mainly for working capital requirements amounting to Rs 101.24 crore, and the remaining for general corporate purposes.

The IPO will close on September 12.

Here are some key takeaways from the article:

  • The EMS IPO was oversubscribed 15 times on the second day of bidding.
  • HNIs and retail investors were the most bullish on the company, bidding 29.71 times and 16.59 times the allotted quota respectively.
  • QIBs have bought 67 percent shares of the reserved portion.
  • The company has already raised Rs 96.37 crore via a fully booked anchor book.
  • The IPO will close on September 12.

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