EMS IPO Subscribed 12.49 Times on Day 2

EMS IPO Subscribed 12.49 Times on Day 2. Image/Bloomberg

New Delhi, September 11, 2023: The EMS IPO, which opened for subscription on September 8, has witnessed strong investor interest. On the second day of the subscription period, the EMS IPO was subscribed 12.49 times, indicating significant demand for the offering.

Robust Retail and Non-Institutional Investor Response

Retail investors showed substantial enthusiasm, with the retail portion of the EMS IPO being oversubscribed 14.39 times. Non-institutional investors (NIIs) also demonstrated strong interest, with the NII portion being oversubscribed 23.37 times.

Decent Response from Qualified Institutional Buyers (QIBs)

While the QIB portion saw a decent response with a subscription rate of 48%, the overwhelming demand primarily came from retail and NII investors.

Subscription Figures and Categories

As of 15:03 IST, the EMS IPO received bids for 13,47,37,050 shares against the total offering of 1,07,87,431 shares. Here’s a breakdown of the subscription in various categories:

• Retail Investors: Bids for 7,86,67,820 shares against the offer size of 54,62,142 shares.
• Non-Institutional Investors (NIIs): Bids for 5,47,35,800 shares against the offer size of 23,40,918 shares.
• Qualified Institutional Buyers (QIBs): Bids for 14,19,110 shares against the offer size of 29,84,371 shares.

IPO Details

The EMS IPO consists of a fresh issue of shares worth ₹146.24 crore and an offer for sale (OFS) portion consisting of 82,94,118 shares priced at ₹10 each, aggregating to ₹175 crore, sold by promoter selling shareholder Ramveer Singh. The total issue size of the EMS IPO stands at ₹321.24 crores.

Strong Anchor Book Participation

EMS IPO garnered significant interest from anchor investors and raised about ₹96.37 crore through anchor book allocation. Several domestic and foreign investors participated in the anchor book issue.

Fund Utilization

The net proceeds from the fresh issue will be utilized to fund the working capital requirements of the company and for general corporate purposes.

Important Dates

• Basis of Allotment: September 15, 2023
• Initiation of Refunds: September 18, 2023
• Shares Credited to Demat Accounts: September 20, 2023
• Expected Listing Date: September 21, 2023

Grey Market Premium (GMP)

As of the latest data available, the grey market premium (GMP) for EMS IPO stands at ₹120, down from ₹127 in the previous trading session. This indicates that EMS shares were trading at a premium of ₹120 in the grey market as of today. Considering the upper end of the IPO price band and the current GMP, the estimated listing price for EMS shares is ₹331 apiece, which represents a 56.87% premium over the IPO price of ₹211.

Expectation of a Strong Listing

The upward trend in GMP suggests a strong listing for EMS shares, and investors are showing readiness to pay a premium for the IPO.