EMS raises Rs 96.37 crore via anchor book; IPO opening today

8 Sep 2023 , 09:48 AM

Sewerage solutions company EMS has successfully raised Rs 96.37 crore through its anchor book offering, paving the way for its upcoming initial public offering (IPO). This achievement was made possible by the enthusiastic participation of six investors, resulting in full subscription of the anchor book on September 7.

The anchor investors who contributed to this milestone include 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.

According to EMS’s filing with stock exchanges, in consultation with its merchant bankers, the company has finalized the allocation of 45,67,476 equity shares to anchor investors at an issue price of Rs 211 per share.

It’s noteworthy that the anchor book is a segment designated for qualified institutional buyers (QIBs), and a substantial portion of the QIB allocation, up to 60%, has been fully subscribed by the anchor book.

The remaining 15% of the total issue, which is scheduled to close on September 12, is reserved for high-net-worth individuals (HNIs), with the remaining 35% available for retail investors.

EMS aims to raise Rs 321.24 crore through its upcoming IPO, which comprises a fresh issuance of shares valued at Rs 146.24 crore and an offer-for-sale of 82.94 lakh shares, amounting to Rs 175 crore at the upper end of the price band. The IPO is set to open for subscription on September 8, with a price range of Rs 200 to Rs 211 per share.

The company intends to utilize the net proceeds from the fresh issue primarily for meeting working capital requirements and general corporate purposes. This successful anchor book offering demonstrates strong investor interest in EMS’s IPO and sets the stage for its future growth and development.