BSE & NSE
04 Oct - 07 Oct '22
₹56 - ₹59
The initial public offering (IPO) of Electronics Mart India Ltd, India’s fourth largest consumer durable and electronics retailer, opens on October 4. Incorporated in 1980 as a proprietary concern with a consumer durable and electronics store in Hyderabad, Electronics Mart India is now a multi-brand consumer durable and electronics retailer across India. It deals in home entertainment, mobiles, laptop, home appliances, cameras, kitchen appliances, and personal care. Electronics Mart India focuses on large appliances, such as air conditioners, televisions, washing machines and refrigerators, mobiles and small appliances, IT and others. Their offering includes more than 6,000 SKUs across product categories from more than 70 consumer durable and electronic brands. As of August 31, 2022, out of 112 stores, 100 stores are Multi Brand Outlets and 12 stores are Exclusive Brand. Electronics Mart India IPO opens on October 4 and closes on October 7. The IPO consists of a fresh issue of equity shares aggregating upto Rs 500 crore. The price band for the issue has been kept at Rs 56 to 59 per share. Electronics Mart India Ltd proposes to utilise the net proceeds from the IPO to fund capital expenditure for the expansion and opening of stores and warehouses. The company will also use the proceeds for funding incremental working capital requirements, repayment or prepayment, in full or part, of all or certain borrowings and general corporate purposes.
As mentioned earlier, Electronics Mart India Ltd is the fourth largest consumer durable and electronics retailer in India, with a leadership position in South India. It has a consistent track record of growth and sector-leading profitability. The company is increasing its market presence and geographic reach with cluster-based expansion. As per experts, it has a business model providing operational flexibility to create a long-term sustainable footprint.
Electronics Mart India has seen a steady increase in the revenues earned through its association with its brand partners across product categories. The company’s revenue CAGR has been 17.90% from FY2016 to FY2021. The revenue has already crossed Rs 1,400 crore in the first quarter of fiscal 2023. The net profit is also on steady growth.
|Financial Year||Total Assets||Total Revenues||Net Profit|
|March 2020||Rs 1,347.6 crore||Rs 3,179.02 crore||Rs 81.61 crore|
|March 2021||Rs 1,523.53 crore||Rs 3,207.37 crore||Rs 58.62 crore|
|March 2022||Rs 1,824.74 crore||Rs 4,353.07 crore||Rs 103.89 crore|
|Application opens on||4th October 2022|
|Last date of application||7th October 2022|
|Date of Allotment||12th October 2022|
|Refund begins from||13th October 2022|
|Credit of shares to Demat||14th October 2022|
|Listing date||15th October 2022|
Electronics Mart India Ltd is the 4th largest consumer durable and electronics retailer in India. The company has a leadership position in South India and has a diversified product offering with an optimal product assortment. The company has strategically located logistics and warehousing facilities backed by stringent inventory management using IT systems. On the back of retail store expansion, the company reported robust growth in the business during FY19-22.
The company’s profitability declined mainly on account of a higher cost of sales. Its cost of revenue increased by 16.1% CAGR, thereby leading to a 146 bps contraction in gross margin. The company may find difficulties in maintaining its profitability. It faces stiff competition, especially from online retailers.
The consumer durable appliance retail market is estimated at Rs 33.2 lakh crore in FY22. This market has clocked a business growth of around 12% CAGR between FY17-20. Going forward, the consumer durable appliance market is anticipated to grow by 10-12% CAGR over FY22-27 to reach a size of Rs 4.8-5.3 lakh crore. The company is expanding its reach across select geographies and deepening its footprint in existing markets.
Unfavourable government policies and regulations and a rise in interest rates may result in subdued consumer demand and economic activities, which poses a threat to the company’s business operations. The company’s business also has a regional concentration.
Electronics Mart India’s key direct competitors include other organized brick & mortar retailers such as Reliance Retail, Croma, Vijay Sales, Sathya, Sargam, Girias, Aditya Vision, Adishwar, Viveks, etc. and unorganized retailers such as local electronic stores and others.
Here are some of the key details and information about Electronics Mart India IPO before investing:
- Electronics Mart India’s IPO lot size is 254 shares, and a retail-individual investor can apply for up to 13 lots. This will make his total investment of 3,302 shares or Rs 1,94,818.
- Anand Rathi Advisors, IIFL Securities and JM Financial are the book-running lead managers (BRLM) to the Electronics Mart India IPO.
- Pavan Kumar Bajaj and Karan Baja are the company promoters.
- After the IPO, the implied market cap of the company will be Rs 2,180 – 2,270 crore.
You can apply for the Electronics Mart India Ltd. IPO in these ways:
Link your personal bank A/C to a trusted UPI ID and map it with your TradeSmart account. Now, proceed further to book your IPO. On acceptance of the mandate, the bid amount will get blocked in your bank account Learn more.
1. If you are an Existing TradeSmart demat account holder and wish to apply for an Electronics Mart India Ltd. click here.
2. If you don't have a TradeSmart Account? Sign up.
What are the opening and closing dates for Electronics Mart India IPO?
Electronics Mart India IPO opens for subscription on October 4 and closes on October 7.
What is the price band for Electronics Mart India IPO?
The IPO price band has been fixed at Rs 56 to 59 per share.
Who are Electronics Mart India IPO Lead Managers?
Anand Rathi Advisors, IIFL Securities and JM Financial are the BRLMs for the issue.
What will be the post-issue implied market cap of the company?
The post-issue implied market cap of the company would be around Rs 2,180 crore to Rs 2,270 crore.
Who is the registrar of the issue?
KFin Technologies Ltd is the registrar for Electronics Mart India IPO.
What is Electronics Mart India IPO Minimum and Maximum Lot Size?
The lot size for Electronics Mart India IPO is 254 shares and in multiple thereof. A retail-individual investor can opt for up to 13 lots.
When and where will the Electronics Mart India shares be listed?
Electronics Mart India’s shares are proposed to be listed on October 17, 2022, on BSE and NSE.
What will be Electronics Mart India’s promoter shareholding after the IPO?
After the IPO, the promoter shareholding in Electronics Mart India will drop to 77.97% from 100%.