EMA Partners India, a renowned leadership recruitment firm, is set to go public with its IPO, aiming to raise ₹76.01 crores. This article takes an in-depth look at the EMA Partners India IPO offering, its financial performance, subscription details, and more.

About EMA Partners India

Founded in 2003, EMA Partners India has built a strong reputation for assisting both local and international businesses in recruiting top leadership talent. The company is a key player in executive search, specializing in Board, C-suite, and senior executive placements across a variety of industries. It also offers leadership assessment and advisory services to its clients, helping organizations develop high-performance leadership teams. With more than 20 years of experience in executive search and a senior management team with a combined experience of over 134 years, EMA Partners India continues to impact organizations globally.

Key IPO Details

The EMA Partners India IPO consists of both a fresh issue of 53.34 lakh shares, valued at ₹66.14 crores, and an offer for sale of 7.96 lakh shares, amounting to ₹9.87 crores. The IPO subscription period opens on January 17, 2025, and closes on January 21, 2025. The share price band for the issue is set between ₹117 and ₹124 per equity share. The lot size for retail investors is 1,000 shares, requiring a minimum investment of ₹1,24,000. For HNIs, a minimum investment of ₹2,48,000 is required for 2 lots (2,000 shares).

The market capitalization at the upper price band of ₹124 per share will be ₹288.25 crores. The IPO is being managed by INDORIENT FINANCIAL SERVICES LIMITED, and Bigshare Services Private Limited is the registrar for the issue. Alacrity Securities Limited will be the market maker.

IPO Grey Market Premium (GMP)

As of January 14, 2025, the GMP of EMA Partners India IPO is ₹0, reflecting no expected listing gains. The lack of any substantial Grey Market Premium indicates a cautious market sentiment for this IPO, with demand not showing signs of a major surge before listing.

EMA Partners India IPO Subscription Status

The live subscription status for the IPO shows 0.48 times subscription as of the first day, January 17, 2025. Keep track of this number in real-time to gauge the market's response to the offering.

EMA Partners India IPO Objectives

The company aims to utilize the net proceeds from the IPO for several key purposes, including:

1. Augmenting the leadership team of the company and its subsidiaries.
2. Capital expenditure towards upgrading IT infrastructure.
3. Repayment of borrowings related to the purchase of office premises.
4. General corporate purposes, including potential acquisitions.

Financial Performance of EMA Partners India

EMA Partners India has shown steady financial growth over the years, with revenues increasing year-on-year. The company’s EBITDA and profit after tax have demonstrated significant resilience, especially in the fiscal year 2024. For the period ending July 31, 2024, the company reported revenues of ₹2,632.90 lakh, an EBITDA of ₹679.68 lakh, and a profit after tax of ₹437.22 lakh.

The company's P/E ratio at the upper price band stands at 20.20x, which is relatively lower than the industry P/E of 40x. This suggests that the IPO may be reasonably priced, although investors should assess the risk against the expected returns.

IPO Review and Recommendations

Given the steady financial performance and strong leadership team, EMA Partners India’s IPO offers potential, but with limited immediate listing gains as indicated by the Grey Market Premium. The P/E ratio indicates the IPO is priced to reflect its growth trajectory, but there are no major discounts or surprises for potential investors. We recommend investors to avoid the EMA Partners India IPO for listing gains but consider the long-term prospects of the company in leadership recruitment and consulting services.

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The Upcoming IPOs in this week and coming weeks are Capital Numbers, Rexpro Enterprises, Denta Water and GB Logistics.

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