Electronics Mart India IPO ends with robust subscription

The offer received bids for 449.54 crore shares as against 6.25 crore shares on offer.

The initial public offer (IPO) of Electronics Mart India received bids for 4,49,54,04,268 shares as against 6,25,00,000 shares on offer. The issue was subscribed 71.93 times.

The Qualified Institutional Buyers (QIBs) category was subscribed 169.54 times. The Non Institutional Investors (NIIs) category was subscribed 63.59 times. The Retail Individual Investors (RIIs) category was subscribed 19.72 times.

The issue opened for bidding on Tuesday (04 October 2022) and closed on Friday (07 October 2022). The price band of the IPO was fixed at Rs 56-59 per share.

The issue comprised of only fresh issue of equity shares aggregating to Rs 500 crore.

Of the net proceeds about Rs 111.441 crore towards funding of capital expenditure (largely opening of stores and warehouses); Rs 220 crore towards funding incremental working capital requirements and Rs 55 crore towards repayment / prepayment of certain borrowings in part or full.

Ahead of the IPO, Electronics Mart India on Tuesday, 13 September 2022, raised Rs 149.99 crore from anchor investors. The board finalized the allocation of 2,54,23,728 shares at Rs 59 per share to 20 anchor investors.

Electronics Mart India (EMIL) is the 4th largest consumer durable and electronics retailer in India. As of 31 August 2022, it operates and manages 112 stores with a total retail business area of 1.12 million square feet (msft), located across 36 cities/urban agglomerates, predominantly in Andhra Pradesh (AP), Telangana and Delhi NCR (NCR). EMIL is not engaged in any manufacturing and the products it sells are sourced from wide variety of suppliers/OEMs, with some of them it has long-standing relationship of more than 15 years. It operates both multi brand outlets (MBOs) and exclusive brand outlets (EBOs) arraying multifarious as well as specialized electronic products.

The company reported a net profit of Rs 40.66 crore and sales of Rs 1,408.45 crore in the three months ended 30 June 2022.

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