Electronics Mart IPO opens today: Electronics Mart India (EMIL) is set to go public with an Initial Public Offering (IPO) opening for subscription today, October 4. The subscription will close on October 7. The company is a retailer of mobile, electronics, home equipment, and other diverse range of products. EMIL’s IPO consists of the issuance of fresh equity shares with a face value of Rs 10 each. The promoters will be diluting 22.03 per cent of the 100 per cent shares in the company. The allocation to QIBs, in this IPO, is 50 percent whereas 35 and 15 percent shares will be available for retail and non-institutional investors.
If you also have been planning to invest your money in Electronics Mart India (EMIL) IPO, here are things you need to know
Electronics Mart IPO Price Band
EMIL has fixed the price band for the IPO range of Rs 56 to Rs 59. The entire issue would be in the form of a fresh of shares aggregating to Rs500 crore.
Electronics Mart IPO Lot Size
The minimum lot size is 254 shares. Retail investors can apply for a minimum of 1 and a maximum of 13 lots, making up a total of 3,302 shares. At the upper range of the price band, one lot size would be worth Rs 14,986.
EMIL’s performance in the Last Financial Year
In FY 2022, the company reported a net profit of Rs 103.89 crore from a revenue of Rs 4,349 crore. For the quarter ending in June 2022, EMIL reported a net profit of Rs 40.66 crore and Rs 1,410.25 crore in revenue.
Electronics Mart IPO Objective
The company said that it intends to utilise the net proceeds from the IPO to fund its capital expenditure, support incremental working capital requirements and pay debt and will also be used for general corporate purposes.
Electronics Mart IPO Allotment Process
The final allotment of shares will be announced by October 12 with refund initialization by October 13. The credit of allotted shares to the Demat account will begin by October 14.
Electronics Mart IPO Listing Date
EMIL is likely to make its debut in the market on October. The book-running lead managers for the EMIL IPO issue are JM Financial IIFL Securities and Anand Rathi Securities.
Electronics Mart IPO GMP Today
As per market observers, Electronics Mart India shares are commanding a premium or grey market premium (GMP) of Rs 31 in the grey market today. The company’s shares are expected to list on stock exchanges on Monday, October 17, 2022.
Electronics Mart IPO: Should you Subscribe?
“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 per cent) 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.
Electronics Mart IPO: Business Profile
Incorporated in 1980, Electronics Mart India today operates 112 stores across 36 different cities predominately in Andhra Pradesh, Telangana in NCR. The company is the fourth largest consumers durable and electronics retailer in India.
The company also has specialized stores under the name Kitchen Stories which cater to kitchen specific-requirements. In addition, there is also a specialized store format called Audio & Beyond, focused on audio or home products. EMIL has a generic brand name of Bajaj Electronics used to market all products
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