Electronics Mart India IPO: Latest GMP as all eyes on shares listing after allotment

The initial public offering (IPO) of consumer durables retail chain Electronics Mart India received 71.93 times subscription on the final day of offer last week on Friday. The IPO received bids for 449.53 crore shares against 6.25 crore shares on offer.

The finalization of basis of share allotment of Electronics Mart India IPO has been done and all eyes are now on share listing. The company's shares are expected to list on stock exchanges next week on Monday, October 17, 2022.

As per market observers, Electronics Mart India shares are commanding a premium or grey market premium (GMP) of ₹24 in the grey market today.

Electronics Mart India IPO consisted of a fresh issue of equity shares aggregating to ₹500 crore, with no offer for sale (OFS) component. The price range for the offer was at ₹56-59 per share. The company in its draft IPO papers 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.

Incorporated in 1980, 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. As of August 31, 2022, out of 112 stores, 100 are multi brand outlets (MBOs) and 12 are exclusive brand outlets (EBOs).

Anand Rathi Share and Stock Brokers, IIFL Securities and JM Financial were the managers to the offer and KFin Technologies Limited was the registrar of the initial share sale.

Speaking on the fundamentals of Electronics Mart India Ltd, Astha Jain, Senior Research Analyst at Hem Securities said, "Company’s scale of operations along with its long-standing relationship with leading consumer brands enables it to procure products at competitive rates. Company being one of the fastest growing consumer durable and electronics retailer with consistent track record of growth and industry leading profitability has business model that provide operational flexibility to create long term sustainable footprint."