Mumbai-based EMA Partners India Ltd. (EPIL), a prominent executive search firm specializing in leadership hiring solutions across divere sectors, has announced its maiden IPO. The issue, set to raise INR 76.01 crore at the upper price band, comprises a fresh issue of INR 66.14 crore and an offer for sale of INR 9.87 crore. The IPO opened on January 17, 2025, and closes on January 21, 2025, with shares to be listed on NSE SME Emerge. Today (January 24) is the debut day for the counter.
Company Overview
EPIL is a member of EMA Partners International Limited, London, enabling it to deliver professional executive search services globally. With a robust domestic presence in Mumbai, Chennai, Gurgaon, and Bengaluru, and subsidiaries in Singapore and Dubai, EPIL is well-positioned to tap into the international talent pool. Notably, its James Douglas brand specializes in agile recruitment for mid-to-senior-level roles.
The company plans to utilize IPO proceeds for strengthening its leadership team (INR 25.53 crore), upgrading IT infrastructure (INR 6.45 crore), debt repayment (INR 5.43 crore), and general corporate purposes.
Financial Snapshot
EPIL’s revenue trajectory shows recovery and growth post-pandemic. FY24 revenues reached INR 68.84 crore with a net profit of INR 14.62 crore, reflecting a strong PAT margin of 20.74%. However, FY23 saw a dip in profits, aligning with industry-wide challenges during the pandemic. For the four months ended July 31, 2024, EPIL posted a PAT of INR 4.33 crore on revenues of INR 26.33 crore.
The IPO is priced at a P/E of 22.22 (annualized FY25 earnings) and 19.71 (FY24 earnings), indicating the issue is relatively fully priced. With post-IPO NAV at INR 57.42, the price-to-book ratio stands at 2.16.
Industry Position and Peer Comparison
EPIL has cited Quess Corp (NSE:QUEC) and Teamlease Services as peers, trading at P/E multiples of 25.7 and 45.4, respectively. While these are not directly comparable, EPIL’s niche focus on leadership hiring may attract investor attention.
As a first-mover in the executive search segment on NSE SME Emerge, EPIL’s specialized solutions and strong margins position it uniquely. However, the IPO appears fully priced based on current financial metrics. Investors with a medium-to-long-term horizon may consider the offering, especially given its potential for industry leadership. It can become an even better opportunity if bought after a dip after the listing.
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