Electronics Mart India powers up its expansion with IPO, sets price band at Rs 56-59/share

Half of the issue size has been reserved for qualified institutional investors, 35% for retail investors, and the remaining 15% for non-institutional investors.

Pavin Elsa NelsonUpdated: Thursday, September 29, 2022, 02:58 PM IST
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Electronics Mart India Ltd (EMIL) to sell its shares at a price band of Rs 56-59 per share for its Rs 500 crore initial public offering (IPO). The IPO will be open for public subscription from Tuesday, October 4 and closes on October 7, 2022. The initial sale consists of a fresh issue of equity shares aggregating to ₹500 crores, with no offer for sale (OFS) component.

Investors can bid for a minimum of 254 equity shares and in multiples of 254 thereafter. Half of the issue size has been reserved for qualified institutional investors, 35% for retail investors, and the remaining 15% for non-institutional investors.

The company said that it intends to employ the net proceeds towards capital expenditure, to support incremental working capital requirements, paying debts, and for general corporate purposes.

EMIL has a leadership position in South India with 112 stores across 36 cities as of last month and their multi-brand outlets operate under the brand name Bajaj Electronics other than two specialized stores under the name 'Kitchen Stories' catering to kitchen specific-requirements and 'Audio & Beyond' focusing on high-end home audio and home automation solutions.

"We are planning to open 35-40 stores in the NCR in clusters within a couple of years," said Karan Bajaj, CEO, EMIL. With the cluster-based expansion strategy, EMIL plans to deepen its store network in Andhra Pradesh and Telangana and gradually expand in NCR.

EMIL displays more than 6,000 stock-keeping units (SKUs) across product categories from more than 70 consumer durable and electronic brands. It operates across retail, wholesale, and e-commerce channels.

In FY 22, the company's revenue from operations increased by 36% to Rs 4349.32 crores from Rs 3201.88 crores in the same period last year, while profit after tax surged 77% to Rs 103.89 crores from Rs 58.62 crores during the same period.

Anand Rathi Advisors, IIFL Securities, and JM Financial are the book-running lead managers to the issue. KFin Technologies Limited is the registrar of the share sale. The company's shares are expected to list on Monday, October 17, 2022

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