BackElectronics Mart India IPO: Latest GMP on last day of the issue, GMP here
Electronics Mart India IPO received 7.57 times subscription on the second day of offer
PremiumThe Initial Public Offering (IPO) of Electronics Mart India Ltd (EMIL) received 7.57 times subscription on the second day of offer on Thursday, after being fully subscribed on the first day on Tuesday. The three-day issue concludes on Friday, October 7, 2022. As of 2:30 am on last day, the issue has been subscribed 7.5 times, with retail investors' category overbooked 16x, Non Institutional Investors 47x, and QIBs or Qualified Institutional Buyers 91x, BSE data showed.
The Electronics Mart India IPO consists of a fresh issue of equity shares aggregating to ₹500 crore, with no offer for sale component with the price range for the initial share sale at ₹56-59 a share.
As per market observers, Electronics Mart India shares' grey market premium (GMP) have remained steady at ₹34 in the grey market today. The company's shares are expected to list on the stock exchanges on Monday, October 17, 2022.
“We assign a Subscribe rating as valuations appear reasonable considering the company’s strong and sustainable growth prospects and continued focus on maintaining balance of revenue growth with consistent margins in line with industry peers," said brokerage ICICI Securities in an IPO note.
Electronics Mart India (EMIL) is the fourth largest and one of the fastest growing consumer durables and electronics retailers in India. It is the largest regional organised player in the southern region in revenue terms with dominance in Telangana and Andhra Pradesh.
The company registered a healthy revenue CAGR of ~17.9% in FY16-21. EMIL has remained profitable even during the pandemic while its EBITDA margin has been in the range of 6-7% over FY20-22.
As of August 31, 2022, out of 112 stores, 100 are multi brand outlets (MBOs) and 12 are exclusive brand outlets (EBOs). EMIL operates 89 MBOs under the name Bajaj Electronics in Andhra and Telangana, eight MBO under the name of Electronics Mart in the NCR region, two specialised stores under the name Kitchen Stories, which caters to the kitchen specific demands of its customers and one specialised store format under the name Audio & Beyond focusing on high end home audio and home automation solutions.
The product portfolio comprises large appliances, which contribute ~ 54% of revenues while mobiles contribute around 31% and small appliances and other products contribute 15% of total revenues. The company is currently associated with more than 70 electronic brands.
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