EMS Limited made an impressive debut in the stock market on Thursday when its shares were listed at Rs 282 each, marking a notable 33 percent increase from its initial public offering (IPO) price of Rs 211.
This milestone stock market debut occurred simultaneously on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), where the stock boasted premiums of 34 percent and 33 percent, respectively.
Despite this strong listing performance, EMS witnessed a debut that was slightly more subdued than originally anticipated.
In the grey market, which operates a day before the official listing, EMS had commanded a premium ranging from Rs 85 to Rs 90. This indicated the possibility of a listing premium of up to 40-42 percent above its issue price. However, the water treatment company experienced a slight correction following the close of its IPO.
EMS conducted its IPO from September 8 to September 12, successfully raising Rs 321.24 crore from the primary markets. During this offering, the company presented shares within a fixed price range of Rs 200-211 per share. Interested investors were allowed to bid for a minimum of 70 shares and in multiples thereafter.
The IPO was met with robust demand, achieving an overall subscription rate of 76.21 times. Qualified institutional bidders (QIBs) oversubscribed their allotment by an impressive 149.98 times, while non-institutional investors subscribed at a rate of 84.39 times. Retail investors exhibited substantial interest, subscribing at a rate of 30.55 times their allocated shares.
Anubhuti Mishra, an Equity Research Analyst at Swastika Investment Ltd., shared post-listing insights regarding EMS Limited. She commended the stock's debut at Rs 282 per share, especially considering the challenging market conditions.
"EMS Limited made its stock market debut on September 21, 2023, at a price of Rs 282 per share, which is 33 percent higher than its IPO price of Rs 211. This is a very promising listing, even in a weak market," Mishra remarked.
She further elaborated on the company's strengths, stating, "The company's strong fundamentals and high subscription levels were positive factors contributing to this performance. EMS Limited is a leading water and wastewater management company with a proven track record. The company boasts a robust order book and is strategically positioned to benefit from the government's emphasis on infrastructure development."
Mishra also provided guidance for investors, suggesting, "Investors may consider booking profits after this listing. However, those with a long-term perspective may want to maintain a stop loss at 255."
