The initial public offering (IPO) of consumer durables retail chain Electronics Mart India received a subscription of 71.93 times on the closing day of last week’s offering on Friday. The IPO received offers for 449.53 billion shares versus 6.25 billion shares on offer.
The basis for the share allotment of Electronics Mart India IPO has been completed and all eyes are now on the share listing. The company’s shares are expected to go public next week on Monday, October 17, 2022.
According to market watchers, Electronics Mart India shares are commanding a premium or Gray Market Premium (GMP) of €24 today on the gray market.
Electronics Mart India IPO consisted of a re-issuance of shares to aggregate €500 crore, with no Offer-for-Sale (OFS) component. The price range for the offer was included €56-59 per share. The company said in its draft IPO papers that it intends to use the net proceeds to fund its investments, support additional working capital needs and service debt, as well as for general corporate purposes.
Electronics Mart India Ltd (EMIL) was established in 1980 and established by Pavan Kumar Bajaj and Karan Bajaj as a separate company with a Durable Goods and Electronics store under the name Bajaj Electronics. As of August 31, 2022, out of 112 stores, 100 are Multi Brand Outlets (MBOs) and 12 are Exclusive Brand Outlets (EBOs).
Anand Rathi Share and Stock Brokers, IIFL Securities and JM Financial were the managers of the offering and KFin Technologies Limited was the registrar of the initial share sale.
Speaking on the fundamentals of Electronics Mart India Ltd, Astha Jain, Senior Research Analyst at Hem Securities said: “The scale of the company’s operations together with its longstanding relationship with leading consumer brands enables it to source products at competitive prices. The company is one of the fastest growing consumer durables and electronics retailers with consistent growth and industry-leading profitability with a business model that provides operational flexibility to create a long-term sustainable footprint.”
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