EMA Partners India Ltd. (EPIL), a prominent executive search firm, is all set to make its debut on the NSE SME Emerge platform through its IPO, opening from January 17 to January 21, 2025. With a rich legacy of delivering tailored leadership hiring solutions, EPIL serves a diverse clientele across industries, bolstered by its association with EMA Partners International Limited since 2003. This membership enables EPIL to leverage a global network for executive search services and brand recognition.
A Strategic Expansion Journey
Headquartered in Mumbai, EPIL operates across Chennai, Gurgaon, and Bengaluru, with a global footprint spanning Singapore and Dubai. The company’s subsidiaries, including James Douglas Professional Search, specialize in agile recruitment for mid-to-senior positions, strengthening its position in the international executive search market. With 117 employees as of November 2024, EPIL continues to tap into global talent pools to meet growing client demands.
IPO Details and Utilization
EPIL’s maiden IPO aims to raise INR 76.01 crore at the upper price band of INR 124 per share. The offering includes INR 66.14 crore in fresh equity and an offer for sale worth INR 9.87 crore. The proceeds will be allocated to strengthening the leadership team, IT infrastructure upgrades, debt repayment, and general corporate purposes. Post-IPO, the company’s paid-up capital will increase to INR 11.62 crore, giving it a market cap of INR 288.26 crore.
Financial Highlights
Over the past three years, EPIL has demonstrated resilient financial performance, rebounding strongly from pandemic-related challenges in FY23. Its revenues and profits have grown steadily, with a PAT margin of 20.74% in FY24. The company’s average EPS of INR 5.91 and RoNW of 23.58% underscore its profitability. However, the IPO’s pricing at a P/E of 22.22 (FY25 earnings) suggests the issue is fully valued.
Industry Comparison
EPIL lists Quess Corp (NSE:QUEC) and Teamlease Services as peers, trading at P/E multiples of 25.7 and 45.4, respectively. However, these comparisons aren’t exact due to differing business models.
Investment Outlook
EPIL’s niche expertise and global footprint position it as a first-mover in its segment. While the IPO appears fully priced, the company’s robust growth trajectory and high margins make it a potential long-term opportunity for informed investors seeking exposure to the executive search sector.
As always, data-driven tools like InvestingPro can help investors analyze IPO valuations and market opportunities effectively. Don’t miss the last chance to make smarter investment decisions with discounts of up to 50% on InvestingPro!
Read More: ProPicks AI: Strategies with Over 1,000% Returns are Finally Here!
X (formerly, Twitter) - Aayush Khanna
LinkedIn - Aayush Khanna