Stay updated with the latest Grey Market Premium (GMP) trends for EMS IPO. Learn about the IPO details, GMP impact factors, and what the numbers indicate for potential investors.

The EMS IPO, valued at ₹321.24 crore, is generating significant interest in the market. Comprising both an offer for sale and a fresh issue of shares, this IPO has the potential to make waves. Understanding the Grey Market Premium (GMP) associated with the EMS IPO can provide valuable insights for potential investors.

EMS IPO Details

The EMS IPO encompasses a fresh issue and an offer for sale (OFS). The fresh issue consists of 69,30,806 shares, amounting to ₹146.24 crore at the upper price band of ₹211 per share. The OFS portion involves 82,93,839 shares, valued at ₹175 crore at the same upper price band. Mr. Ramveer Singh, the company’s promoter, will offload the entire OFS quantum. In total, the IPO will include 1,52,24,645 shares, with an issue size of ₹321.24 crore.

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The subscription period for the EMS IPO runs from September 8, 2023, to September 12, 2023, with allotment finalization on September 15, 2023. Refunds are set to begin on September 18, 2023, and demat credits are expected on September 20, 2023. The stock is scheduled for listing on September 21, 2023, on both NSE and BSE.

Understanding EMS GMP

Grey Market Premium (GMP) is a key indicator of the market sentiment towards an IPO. It typically emerges 4-5 days before an IPO’s opening and extends until the listing date. For EMS Ltd, the GMP trend over the last 3 days provides insights into potential listing performance.

Two primary factors influence GMP. First, market conditions, including Nifty and Sensex levels and overall IPO market sentiment, play a significant role. Second, subscription levels across retail and QIB segments impact GMP; strong QIB subscription often triggers GMP spikes.

GMP offers an informal yet insightful gauge of demand and supply for an IPO. It can signal how the stock may perform post-listing.

EMS IPO GMP Trends

Here’s a summary of EMS IPO’s GMP over the last few days:

• 6-Sept-2023: ₹112
• 5-Sept-2023: ₹112
• 4-Sept-2023: ₹112
• 3-Sept-2023: ₹115
• 2-Sept-2023: ₹115
• 1-Sept-2023: ₹103

While the GMP initially started at ₹103, it has since risen to ₹112 per share. However, it’s important to note that this shift coincided with the announcement of the IPO price band. The GMP level indicates strong traction in the grey market.

What EMS GMP Implies

Considering the upper price band of ₹211, the GMP suggests a listing price of around ₹326 per share. This indicates a robust listing premium of 54.5% for EMS Ltd over the listing price. Keep in mind that these are approximations, so a margin of safety is prudent. The GMP’s trajectory will depend on subscription numbers once the IPO opens.

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While GMP is an unofficial indicator, it often aligns with listing outcomes. Observing the trend over time provides valuable insights.

A Glimpse into EMS Ltd’s Business Model

EMS Ltd, established in 2012, focuses primarily on water and wastewater solutions. It provides services related to water supply systems, wastewater collection, treatment, and disposal. Additionally, EMS Ltd engages in civil construction works, road projects, and electrical transmission and distribution.

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The company operates and maintains various projects, including Sewage Treatment Plants (STPs), Sewage Network Schemes, and Common Effluent Treatment Plants (CETPs). EMS Ltd’s comprehensive services encompass project design, engineering, procurement, execution, and maintenance.

The proceeds from the fresh issue will support working capital needs and general corporate purposes. Khambatta Securities Ltd leads the management of the IPO, with KFIN Technologies Ltd (formerly Karvy Computershare Ltd) serving as the registrar.

In conclusion, the EMS IPO’s GMP suggests strong investor interest. However, investors should closely monitor subscription trends and exercise caution in interpreting GMP as an informal yet informative indicator.