Mumbai, October 06, 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 47,29,37,840 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 7.57 times on the second day of bidding.
The reserved portion of non-institutional investors witnessed a subscription of 11.74 times. Retail Portion saw a strong demand and was subscribed 7.81 times. The qualified institutional buyer portion was subscribed 4.01 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.
Angel Broking, Elara Capital, ICICI Direct, Hem Securities, Choice Broking, Indsec and Nirmal Bang have recommended a ‘Subscribe’ rating to the issue. According to brokerage houses, Electronic Mart India Limited (EMIL) would continue to rise at a healthy pace in terms of store expansion, especially in North India, and given the customer shift toward modern format large retailers (as a one-stop shop experience with higher store keeping unit [SKU]) vs a distribution model. It is India’s fourth largest and one of its fastest growing consumer durables and electronics stores. In terms of revenue, the company is also the largest regional organised player in the southern area, with leadership in the states of Telangana and Andhra Pradesh. Valuations appear reasonable considering the company’s strong and sustainable growth prospects and continued focus on maintaining balance of revenue growth with consistent margins in line with industry peers.
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 | 7,16,01,330 | 4.01 |
| 1(a) | Foreign Institutional Investors (FIIs) | – | 43,14,190 | – |
| 1(b) | Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies) | – | 2,99,01,642 | – |
| 1(c) | Mutual Funds | – | 3,59,35,666 | – |
| 1(D) | Others | – | 14,49,832 | – |
| 2 | Non Institutional Investors(NIIS) | 1,33,92,858 | 15,72,81,118 | 11.74 |
| 2.1 | Non Institutional Investors(Bid amount of more than Ten Lakh Rupees) | 89,28,572 | 9,81,34,170 | 10.99 |
| 2.1(a) | Corporates | – | 6,65,988 | – |
| 2.1(b) | Individuals (Other than RIIs) | – | 8,75,21,542 | – |
| 2.1(c) | Others | – | 99,46,640 | – |
| 2.2 | Non Institutional Investors(Bid amount of more than Two Lakh Rupees and upto 10 lakh rupees) | 44,64,286 | 5,91,46,948 | 13.25 |
| 2.2(a) | Corporates | – | 88,392 | – |
| 2.2(b) | Individuals (Other than RIIs) | – | 4,95,97,310 | – |
| 2.2(c) | Others | – | 94,61,246 | – |
| 3 | Retail Individual Investors (RIIs) | 3,12,50,000 | 24,40,55,392 | 7.81 |
| 3(a) | Cut Off | – | 21,10,87,462 | – |
| 3(b) | Price Bids | – | 3,29,67,930 | – |
| 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 | 47,29,37,840 | 7.57 | |
BSE+NSE Cumulative demand link: https://www.nseindia.com/market-data/issue-information?symbol=EMIL&series=EQ&type=Active
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