EMS Limited – Tapping in the growth in the water management space

The company did provide a clarification over the BrijBihari acquisition in its q1fy25 con call, listen at timestamp 52:00 (it’s in Hindi). They said the acquisition is more of an asset acquisition and not an operational acquisition.

The companies intent is to use the asset as a mortgage collateral.

There are two options for a mortgage collateral,

1. Do a 50cr FD and submit the FD receipt as collateral.
2. Use some asset as a collateral.

The promoter said that the first option is not that financially viable as the return would be 5-7% with a 30% tax rate vs the asset that he has acquired for 50cr (directly from the bank), whose fair market value is around 100cr (according to promoter Mr. Ramveer Singh).