Home Stock list Electronics Mart India IPO: What GMP Reports Ahead of Stock Listing

Electronics Mart India IPO: What GMP Reports Ahead of Stock Listing


The initial public offering (IPO) of durable consumer goods retail chain Electronics Mart India received 71.93 times subscription on the last day of the offering last week on Friday. The IPO received bids for 449.53 crore shares against 6.25 crore shares on offer.

Electronics Mart India shares command premium or gray market premium (GMP) jumped for 30 in the gray market today, compared to 24 yesterday.

The finalization of the Electronics Mart India IPO share allocation basis has been completed and all eyes are now on the share listing. The company’s shares are expected to go public next week, Monday, October 17, 2022.

The IPO of Electronics Mart India consisted of a new issuance of equity shares totaling 500 crore, without any offer to sell (OFS). The price range of the offer was 56-59 per share.

The company said it intended to use the net proceeds to fund capital expenditures, meet additional working capital needs and repay debt, and would also be used for general corporate purposes.

Incorporated in 1980, Electronics Mart India Ltd (EMIL) was founded by Pavan Kumar Bajaj and Karan Bajaj as a proprietary company with a consumer durable goods and electronics store under the name Bajaj Electronics. As of August 31, 2022, out of 112 stores, 100 are multi-brand points of sale (MBO) and 12 are exclusive points of sale (EBO).

Its multi-brand outlets operate under the Bajaj Electronics brand, with the exception of two specialty stores under the name “Kitchen Stories”, catering to specific kitchen requirements and a specialty store format under the name “Audio & Beyond “, focused on the high end. home audio and home automation solutions.

“In terms of valuations, the post-issue P/E stands at 21.8x FY22 EPS (at the upper end of the issue price range), which is low compared to its peer Aditya Vision. Ltd. In addition, EMIL has better revenue growth (CAGR of 17%) over 2 years, better return on equity and an expansion plan in place.Given all the positive factors, we believe that this valuation is at reasonable levels,” brokerage firm Angel One said in the IPO memo.

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