Electronics Mart files paperwork for Rs 500 crore initial public offering

Consumer durables retail chain Electronics Mart India Ltd has filed preliminary papers with Sebi to raise Rs 500 crore through an initial share-sale.

The initial public offering (IPO) comprises sale of equity shares to the tune of Rs 500 crore, according to the draft red herring prospectus (DRHP).

The company intends to utilise the net proceeds to fund its capital expenditure and incremental working capital requirements to the extent of Rs 133.8 crore and Rs 200 crore, respectively.

In addition, Rs 50 crore will be used towards payment of debt. Funds will also be used for general corporate purposes.

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'.

EMIL is one of the fastest growing companies in the retail of consumer durables and electronics with over 1 crore customers, 7.5 lakh square feet of retail space across over 90 stores supported by a strong workforce of more than 2,600 professionals.

Its multi brand outlets operate under the brand names of Bajaj Electronics other than two specialized stores under the name of 'Kitchen Stories' catering to kitchen specific requirements.

The Hyderabad-based company is also in the process of setting up another such niche outlet under the name of 'Audio & Beyond' catering to high end audio and home automation solutions.

Currently, it is South India's largest and most reliable electronics retailer.

In line with its cluster focused expansion strategy, it plans to deepen store network in Andhra Pradesh and Telangana and gradually expand in NCR, the draft papers showed.

EMIL displays more than 6,000 stock keeping units (SKUs) with a focus on large appliances such as air conditioners, televisions, washing machines, refrigerators; mobiles and small appliances besides other IT peripherals across more than 70 consumer durables and electronic brands. It also operates across wholesale and e-commerce channels.

In FY21, the company's total income stood at Rs 3,207.37 crore against Rs 3,179.02 crore a year ago. Its net profit in the year declined to Rs 58.62 crore from Rs 81.61 crore, predominately due to the impact of the pandemic and reduced consumer spending.

Anand Rathi Advisors, IIFL Securities and JM Financial are the book running lead managers to the issue.