EMS Ltd. to focus on government-funded turnkey water solution

EMS Ltd, which just filed its DRHP with SEBI, intends to focus on turnkey solutions in water and waste-water solution government projects supported by international funding agencies including the World Bank. Almost all of our projects are world bank funded through local state government bodies, a top executive of the company said.

"The government's next focus area would probably be water and waste-water management, a sub-segment of India's environmental technology segment. In the near future, the awareness about clean water & government initiatives to supply clean water to every household in India, will also provide good opportunities," said Shri Ashish Tomar, Managing Director of EMS Ltd, "The National Mission for Clean Ganga, the Jal Jeevan Mission, and Community Drinking Water Schemes are just a few of the initiatives that the government is expected to further support. This will result in a larger order pipeline for local and national businesses operating in these specialised sectors,"

The Jal Shakti Ministry, with a $51 billion budget, aims to increase household water connection coverage from 18.33% to 100% by 2024, attracting water-related suppliers. This ambitious project is creating opportunities for suppliers of water meters, water quality monitoring systems, water management-related IT systems, tertiary treatment technology, and water-related Engineering, Procurement, and construction companies.

"The market for water and waste water treatment is anticipated to grow from $1.31 billion in 2020 to $2.08 billion by 2025. The segment's 9.7% compound annual growth rate (CAGR) has created a race for new-age infrastructure companies to take advantage of the water sector opportunities in the upcoming years." Shri Tomar explained.

EMS was incorporated on December 21, 2010. The company is in the business of providing sewerage solution providers, water supply systems, water and waste treatment plants, electrical transmission and distribution, road and allied works, operation and maintenance of wastewater scheme projects, and water supply scheme projects for government authorities and bodies. The company executes all projects that are World Bank funded, through governments and local bodies, where the funds are already allocated, thereby keeping its balance sheet healthy.

"We have completed more than 50 projects in the past, and currently, as of February 2023, we are executing 13 ongoing projects aggregating into an Order Book of Rs. 1,38,909.00 lakhs, including WWTPs, WSSPs, EPS, and HAM projects. Apart from this, we are also executing 5 O&M projects worth Rs. 9,928.00 Lakhs in Rajasthan, Uttar Pradesh, Himachal Pradesh, Bihar, Mumbai, and Uttarakhand." Shri Tomar said.

In March this year, EMS filled draft papers with SEBI to raise funds through an initial public offering. The IPO includes a fresh issue of equity shares worth Rs 180 crore and an offer for sale of 82.94 lakh shares by promoter Ramveer Singh. At present, Singh holds a 97.81 percent stake in the company.

As per DRHP, the company may consider a pre-IPO placement of up to Rs 60 crore; if such a placement takes place, the number of equity shares will be reduced from the issue. Proceeds from the fresh issue will be utilised towards funding working capital requirements and other general corporate purposes.

Upon completion of the IPOs, the share of EMS will be listed on the BSE and NSE.

Source : Equity Bulls

Keywords

EMS DRHP SEBI FundRaising IPO BusinessFocus GovernmentFunded WasteWaterSolution