Electronics Mart India IPO: GMP, subscription status on day 2 of the issue
Electronics Mart India IPO was fully subscribed at 1.69 times on first day of offer
PremiumThe Initial Public Offering (IPO) of consumer durables retail chain Electronics Mart India was fully subscribed on the first day of offer on Tuesday, and the issue closes on Friday, October 7, 2022. The market was closed on Wednesday for a public holiday.
As of 3:45 pm on day 2, the issue has been subscribed over 6 times with retail investors' category booked 7x, Non Institutional Investors 8x and Qualified Institutional Buyers 2.7x, BSE data showed.
As per market observers, Electronics Mart India shares are commanding a premium or grey market premium (GMP) of ₹34 in the grey market today. The company's shares are expected to list on stock exchanges on Monday, October 17, 2022.
Electronics Mart India IPO consists of a fresh issue of equity shares aggregating to ₹500 crore, with no offer for sale (OFS) component and the price band for the offer is ₹56-59 per share.
The company 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.
“In terms of valuations, the post-issue P/E works out to 21.8x FY22 EPS (at the upper end of the issue price band) which is low compared to its peer Aditya Vision Ltd. Further, EMIL has better revenue growth (CAGR of 17%) over 2 years, better return on equity and expansion plan on the cards. Considering all the positive factors, we believe this valuation is at reasonable levels. Thus, we recommend a Subscribe rating on the issue," said brokerage Angel One.
Incorporated in 1980, Electronics Mart India Limited (EMIL) is the 4th largest consumer durable and electronics retailer in India. The company offers a diversified range of products with a focus on large appliances (air conditioners, televisions, washing machines and refrigerators), mobiles and small appliances, IT and others. The company's offering includes more than 6,000 SKUs (stock keeping units) across product categories from more than 70 consumer durable and electronic brands.
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.
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