EMS shares make strong D-street debut; stock lists at 34% premium at Rs 282.05

Shares of EMS made a strong debut at Dalal Street on Thursday as the stock was listed at Rs 282.05, a premium of 34 per cent on the National Stock Exchange (NSE), against its issue price of Rs 211. Similarly, the stock kicked off its maiden trading session with a premium of 33% at Rs 281.55 on BSE.

Despite a strong listing pop in the weak market, the debut of EMS has been milder than expected. A day before its listing, EMS was commanding a premium of Rs 85-90 in the grey market, signaling a strong listing pop of up to 40-42 per cent over its given issue price. However, the water treatment player has seen some correction after the close of issue.

The initial public offering (IPO) of EMS was open for bidding between September 8 to September 12.  The company raised Rs 321.24 crore from the primary markets as it offered its shares in the fixed price band of Rs 200-211 per shares. Investors could make a bid of a minimum of 70 shares and its multiples thereafter.

The issue was overall subscribed 76.21 times. The portion for qualified institutional bidders (QIBs) was booked a whopping 149.98 times, while the allocation for non-institutional investors fetched 84.39 times bids. The reservation for retail investors was subscribed 30.55 times during the bidding process.

EMS provides various services, ranging from EPC and O&M, in sewerage solutions, water supply systems, and wastewater schemes for government authorities and local bodies. The company, incorporated in December 2010, has its own civil construction team. Khambatta Securities was the lead manager to the issue, while KFin Technologies acted as the registrar to the Issue.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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