Electronics Mart India IPO sees strong demand, GMP steady

The category for Retail Individual Investors (RIIs) received 1.98 times subscription, while that of Qualified Institutional Buyers (QIBs) got subscribed 1.68 times. The portion for non-institutional investors received 1.04 times subscription on day 1 of the issue.

Electronics Mart India IPO consists of a fresh issue of equity shares aggregating to ₹500 crore, with no offer for sale component. Price range for the offer is 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.

As per market observers, Electronics Mart India shares are commanding a premium or grey market premium (GMP) of ₹35 in the grey market today. The company’s shares are expected to list on stock exchanges on Monday, October 17, 2022.

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. The company had 112 stores across 36 cities as of August this year.

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.

In FY22, the company’s revenue from operations increased by nearly 36% to ₹4,349 crore from ₹3,201.8 crore in the same period last year, while net profit surged 77% to ₹104 crore from ₹58.6 crore during the same period.

Anand Rathi Advisors, IIFL Securities and JM Financial are the book running lead managers to the initial share sale. KFin Technologies Limited is the registrar of the public issue.