MUMBAI, OCTOBER 04, 2022 (GPN): The Initial Public Offering (IPO) of Hyderabad-based consumer durable retail chain, Electronics Mart, the 4th largest and one of the fastest growing consumer durables and electronics retailers in India, received bids of 10,58,14,114 shares against the offered 6,25,00,000 equity shares, at a price band of ₹56-59, according to the data available on the stock exchanges. Overall the issue was subscribed 1.69 times on the first day of bidding.
Retail Portion saw a strong demand and was subscribed 1.98 times. The qualified institutional buyer portion was subscribed 1.68 times. The reserved portion of non-institutional investors witnessed a subscription of 1.04 times. The issue kicked off for subscription on Tuesday, October 04, and will be opened till Friday, October 07.
The offer consists of a fresh issue of equity shares aggregating to Rs 500 crore, with no offer for sale component.
Ahead of its issue opening, Electronic Mart raised Rs 150 crore from marquee investors such as PineBridge Global Funds, Societe Generale – ODI and Cohesion MK Best Ideas Sub-Trust. The company aims to raise Rs 500 crore through its IPO.
Canara Bank Securities, Ventura Securities, Angel Broking, Hem Securities, Choice Broking, Indsec and Nirmal Bang have recommended a ‘Subscribe’ rating to the issue.
EMIL being the 4th largest consumer durable and electronics retailer in India with a leadership position in South India. Post issue, it attracts a price to earnings of 17.05x FY22 EPS (at the upper end of the issue price band) is low when compared to its peer Aditya Vision Ltd. Further, EMIL has better revenue growth (CAGR of 17%) over the last 2 years, better return on equity and expansion plan on the cards. It also has a long-standing relationships with leading consumer brands, it is able to obtain products at competitive prices. Given India’s emerging demographics, rising per capita income, improving power situation, and multiple financing options, Brokerage houses believe the organized electronic retail segment has room to grow.
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 to the offer. The equity shares are proposed to be listed on BSE and NSE.
Company Information
EMIL, was founded by Pavan Kumar Bajaj and Karan Bajaj as a proprietary concern with a consumer durable and electronics store under the name of ‘M/s Bajaj Electronics’. As on August 31, 2022 it had 112 stores across 36 cities / urban agglomerates, supported by a strong workforce of 2,091 professionals with 1.12 million square feet of retail space. 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. It 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.
The table below shows subscription data for all the categories of investors:
| ELECTRONICS MART INDIA LIMITED
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| Sr.No. | Category | No.of shares offered / reserved | No. of shares bid for | No. of times of total meant for the category |
| 1 | Qualified Institutional Buyers (QIBs) | 1,78,57,142 | 2,99,10,786 | 1.68 |
| 1(a) | Foreign Institutional Investors (FIIs) | – | – | – |
| 1(b) | Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies) | – | – | – |
| 1(c) | Mutual Funds | – | 2,96,60,850 | – |
| 1(D) | Others | – | 2,49,936 | – |
| 2 | Non Institutional Investors(NIIS) | 1,33,92,858 | 1,39,86,002 | 1.04 |
| 2.1 | Non Institutional Investors(Bid amount of more than Ten Lakh Rupees) | 89,28,572 | 82,52,206 | 0.92 |
| 2.1(a) | Corporates | – | 51,054 | – |
| 2.1(b) | Individuals (Other than RIIs) | – | 74,27,722 | – |
| 2.1(c) | Others | – | 7,73,430 | – |
| 2.2 | Non Institutional Investors(Bid amount of more than Two Lakh Rupees and upto 10 lakh rupees) | 44,64,286 | 57,33,796 | 1.28 |
| 2.2(a) | Corporates | – | 12,192 | – |
| 2.2(b) | Individuals (Other than RIIs) | – | 49,51,730 | – |
| 2.2(c) | Others | – | 7,69,874 | – |
| 3 | Retail Individual Investors (RIIs) | 3,12,50,000 | 6,19,17,326 | 1.98 |
| 3(a) | Cut Off | – | 5,52,20,616 | – |
| 3(b) | Price Bids | – | 66,96,710 | – |
| 4 | Employee Reserved | – | – | – |
| 4(a) | Employee (Cut off) | – | – | – |
| 4(b) | Employee (Price) | – | – | – |
| 5 | Reservation PortionShareholder | – | – | – |
| 5(a) | RPS (Cut off) | – | – | – |
| 5(b) | RPS (Price) | – | – | – |
| Total | 6,25,00,000 | 10,58,14,114 | 1.69 | |
BSE + NSE Cumulative Demand Live Link:
https://www.bseindia.com/markets/publicIssues/CummDemandSchedule.aspx?ID=5898&status=L
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