Electronics Mart India IPO: Latest GMP ahead of issue opening for subscription tomorrow
- Electronics Mart India IPO consists of a fresh issue of shares aggregating to ₹500 cr, with no OFS component
Consumer durables retail chain Electronics Mart India Ltd's (EMIL) three day initial public offering (IPO) will open for public subscription this week on Tuesday, October 4, 2022 and will conclude on October 7, 2022. The price band for the issue has been fixed at ₹56-59 per share.
The initial share sale consists of a fresh issue of equity shares aggregating to ₹500 crore, with no offer for sale (OFS) component. The company said that it intends to utilise the net proceeds to fund its capital expenditure, support incremental working capital requirements and pay debt and will also be used for general corporate purposes.
As per market observers, Electronics Mart India shares are commanding a premium or grey market premium (GMP) of ₹33 per share in the grey market today. The company's shares are expected to list on stock exchanges on Monday, October 17, 2022.
Electronics Mart India Ltd (EMIL) was founded by Pavan Kumar Bajaj and Karan Bajaj as a proprietary concern with a consumer durables and electronics store under the name of Bajaj Electronics.
Its multi-brand outlets operate under the brand name Bajaj Electronics other than two specialised stores under the name 'Kitchen Stories', catering to kitchen specific-requirements and one specialised store format under the name 'Audio & Beyond', focusing on high-end home audio and home automation solutions.
In FY22, the company's revenue from operations increased by nearly 36% to ₹ ₹4,349 crore from ₹3,201.8 crore in the same period last year, while net profit surged 77% to ₹104 crore from ₹58.6 crore during the same period.
“Electronics Mart India is amongst the dominating consumer durables and electronics retailer centralised in South India. Almost 90% of its revenues come from retail chains. 50% of its revenue comes from the sale of large appliances. Based on FY22 earnings post fresh issue, the IPO is priced at a p/e of 21.77x on the upper band, which seems to be moderate as the sector is highly competitive with the presence of deep pocketed players – in both online & offline segments," said Abhay Doshi, co-founder, UnlistedArena.
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