Electronics Mart India Ltd. IPO
Electronics Mart India Ltd.
IPO Listing Details
Listed On
BSE & NSE
Listed On
Issue Price
₹59
Issue Price
Listing Price
₹89
Listing Price
Listing Gains
+₹30.40 (+51.53%)
Listing Gains
IPO Details
Bidding Dates
04 Oct - 07 Oct '22
Bidding Dates
Min. Investment
₹14,224
Min. Investment
Lot Size
254.00
Lot Size
Price Range
₹56 - ₹59
Price Range
Issue Size
475 Cr
Issue Size
Subscription Rate
- Retail Individual Investor19.72x
- Non-Institutional Investor63.59x
- Qualified Institutional Buyers169.54x
- Employees
About Company
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.
Why should you invest in Electronics Mart India Ltd. IPO?
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.
Financial Snapshot -Electronics Mart India Ltd IPO
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 |
Important Dates - Electronics Mart India Ltd IPO
| 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 IPO Grey Market Premium
| Date | GMP |
|---|---|
| 3rd October | Rs.30 |
| 1st October | Rs.30 |
Electronics Mart India Ltd. IPO - SWOT Analysis
Strengths
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.
Weaknesses
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.
Opportunities
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.
Threats
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.
A competitive analysis
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.
Electronics Mart India Ltd IPO Noteworthy Highlights
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.
How to apply for Electronics Mart India Ltd. IPO?
You can apply for the Electronics Mart India Ltd. IPO in these ways:
UPI
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.
Demat Account
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.
