MUMBAI, OCTOBER 03, 2022 (GPN):  Electronics Mart India Limited, is the 4^th largest and one of the fastest growing consumer durable and electronics retailers in India has garnered Rs 150 crore from anchor investors ahead of its initial share sale that opens for public subscription on Tuesday. The company informed the bourses that it allocated 2,54,23,728 shares at Rs.59 per share on Monday, October 03 2022, to anchor investors.

Among the foreign Portfolio Investors who participated in the anchor were PineBridge Global Funds, Societe Generale – ODI and Cohesion MK Best Ideas Sub-Trust.

In addition, shares have been allocated to domestic funds such as Nippon Life, HDFC Trustee Co Ltd, Motilal Oswal Midcap Fund, Aditya Birla Sun Life Insurance Company, Sundaram Mutual Fund, White Oak Capital Flexi Cap Fund, Abakkus Emerging Opportunities Fund-1, Tata AIA Life Insurance Co Ltd, Mirae Asset Balanced Advantage Fund are among the investors that participated in the anchor book.

Out of the total allocation of 2,54,23,728 equity shares to the anchor investors, 15,253,716 equity shares were allocated to 7 domestic mutual funds through 12 schemes amounting to Rs 90 crore i.e. 60% of the Total Anchor Book Size.

EMIL is the largest regional organised player in the southern region in revenue terms with dominance in Telangana and Andhra Pradesh with 1.12 million square feet of the retail business area as of fiscal 2021. As on August 31, 2022 it operated 112 stores across 36 cities / urban agglomerates, out of which, 100 stores are Multi Brand Outlets (“MBOs”) and 12 stores are Exclusive Brand Outlets (“EBOs”). The Company operates 89 MBOs under the name “Bajaj Electronics” in Andhra and Telangana, eight MBO under the name of “Electronics Mart” in the NCR region, two specialized stores under the name “Kitchen Stories” which cater to the kitchen-specific demands of their customers and one specialized store format under the name “Audio & Beyond” focusing on high-end home audio and home automation solutions.

It aims to continue to deepen their store network in their existing clusters to increase the market share in Telangana and Andhra Pradesh. It also intends to open and build the store network in the NCR by opening 26 MBOS with the proceeds of the IPO.

EMIL displays more than 6000 stock keeping units (SKUs) across product categories from more than 70 consumer durable and electronic brands. It operates across three channels of retail, wholesale and e-commerce.

In FY 22 its revenue from operations increased significantly by 35.84% to Rs 4,349.32 crore from Rs 3,201.88 crore for the same period last year, primarily due to increase in the retail sales during the Financial Year 2022 by 35.03%. However, profit after tax increased by 77.22% in profit after tax from Rs 58.62 crore in Fiscal 2021 as compared to Rs 103.89 crore in Fiscal 2022. Revenue from operations have increased at a CAGR of 17.09 % from Fiscal 2020 to Fiscal 2022 and as on FY21 its operating margins stood the second highest amongst its peers. For the three months ended June 30, 2022 its revenue from operations stood at Rs 1,408.45 crore and profit after tax stood at Rs 40.66 crore.

Anand Rathi Advisors Limited, IIFL Securities Limited, and JM Financial Limited are the book-running lead managers to the issue, and KFin Technologies Limited is the registrar of the offer. The equity shares are proposed to be listed on BSE and NSE.

IPO Details

The Issue consists of a fresh issue of Equity Shares aggregating to Rs 500 crore, with no offer for sale component. The company intends to utilise the net proceeds to fund its capital expenditure for expansion and opening of stores and warehouses and funding incremental working capital requirements to the extent of Rs 111.44 cr and Rs 220 cr respectively, repayment/prepayment of Rs 55 crs of its debt besides general corporate purposes.

The Company is proposing to open its initial public offering of Equity Shares (the “Offer”) on Tuesday, October 04, 2022, and closes on Friday, October 07, 2022. The price band for the Offer has been determined at Rs 56 – Rs 59 per equity share.

The IPO will fetch Rs 500 crore at the upper end of the price band.

Investors can bid for a minimum of 254 equity shares and in multiples of 254 equity shares thereafter.

The Offer is being made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended, read with Regulation 31 of the SEBI ICDR Regulations.

The Offer is being made through the Book Building Process, wherein not more than 50% of the Offer shall be available for allocation to Qualified Institutional Buyers, not less than 15% of the Offer shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders.Ends

BSE link for reference: https://www.bseindia.com/markets/MarketInfo/DispNoticesNCirculars.aspx?page=20221003-57