The IPO of Electronic Mart India Ltd. (EMIL), a leading electronic retailer, will soon make its debut in the Indian Capital market. The Rs 500 crore initial public offering (IPO) of Electronics Mart India (EMIL) will open on Tuesday, October 4 and will close on Friday, October 7.
Electronic Mart India IPO: Price Band
The price band for Electronics Mart India’s IPO has been fixed at Rs 56-59 per share.
Electronic Mart India IPO Issue Size
The IPO entirely consists of issuance of fresh equity shares with a face value of Rs 10 each. The company is likely to raise Rs 500 crore via its initial stake sale.
Electronic Mart India IPO: Objective
The company intends to utilize the net proceeds from its issue towards capital expenditure, repayment of debt and incremental working capital requirements, other than general corporate purposes.
Electronic Mart India IPO: Lot Size
Investors can subscribe to Electronics Mart India IPO by betting on a lot of 254 shares or in multiples thereof. At the upper range of the price band, one lot of the IPO is worth Rs 14,986. A retail bidder can bid for 13 lots at a maximum.
Electronic Mart India IPO: Reserved Quota
The quota for retail investors Electronics Mart India IPO is fixed at 35 per cent of the net offer. Qualified institutional buyers quota is fixed at 50 per cent while for NII the quota is reserved at 15 per cent.
Electronic Mart India IPO: About Company
Incorporated in 1980, Electronics Mart India is the fourth largest consumer durable and electronics retailer in India. It operates and manages 112 stores with a retail business area of 1.12 million square feet, located across 36 cities, predominantly in Andhra Pradesh, Telangana and NCR.
The company offers a diversified range of products with a focus on large electrical appliances, mobiles and small appliances, IT( services) 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.
Electronic Mart India IPO: Financials
For the financial year 2021-22, it had reported total revenue of Rs 4,349.32 crore with a net profit of Rs 10389 crore. For the period ended June 30, 2022, the company reported a net profit of Rs 40.66 crore with a revenue of Rs 1,410.25 crore.
Electronic Mart India IPO: Share Allotment Process & Listing
The finalization of the basis of allotment is likely by October 12, 2022, and the initialisation of refunds is likely by October 13. Meanwhile, credit of shares in the demat account is likely by October 14.
Those who would bid for the issue can check the subscription status on the online portal of KFin Technologies, the registrar to the IPO.
Electronics Mart India is expected to make its market debut on Monday, October 17, 2022.
Electronic Mart India IPO: What Should Investors Do?
KR Choksey, a leading brokerage firm, on 30 September 2022 released an IPO Research Note on Electronic Mart India Ltd (EMIL). The brokerage in the report highlighted EMIL IPO’s key strengths, key risks and whether you should subscribe to the IPO or not.
According to the brokerage firm, “EMIL is a regional player in the organized consumer durables retail industry, focused on Andhra Pradesh, Telangana, and NCR regions. EMIL will continue to benefit from pent-up demand and an increase in consumption in the medium term. In the long term, favourable macroeconomic patterns such as changing demographics, rising per-capita income, changing lifestyles, increase in the availability of finance will lead to an increase in penetration of consumer durables and organized retail. Being the 4 th largest organized consumer durables retailer in India, EMIL will benefit from the industry tailwinds. Considering the industry tailwinds, increase in penetration of consumer durables, strong per-store revenue metrics, forging new relationships with leading brand, and EMIL’s plans to add more stores in NCR, debt reduction and addition of new warehouses from the IPO proceedings, the valuation looks reasonable. As a result, we recommend that Electronics Mart India Limited. IPO be rated ‘SUBSCRIBE’.”
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