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Electronics Mart IPO: The country’s fourth-largest consumer durables and electronics retailer Electronics Mart has a listing on Monday, October 17 next week. There are weak signals from the gray market ahead of the listing. Its GMP (Grey Market Premium) in the gray market was at Rs 34-35 during the issue, which has now slipped to Rs 24.
According to signals from the gray market, its shares may get listed at Rs 83, which is over 40 per cent premium to the issue price of Rs 59. However, according to market experts, the market conditions on the day of listing are more important than the gray market premium.
Electronics Mart IPO received a great response
Electronics Mart’s IPO received a great response from investors. The issue was subscribed 71.93 times, making it the second largest issue of the year in terms of subscriptions. The share reserved for the highest Qualified Institutional Buyers (QIBs) was subscribed 169.54 times. The share reserved for non-institutional investors (NIIs) was subscribed 63.59 times and retail investors 19.72 times.
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The money raised will be used for
Under this issue, Electronics Mart has issued fresh equity shares of Rs 500 crore to IPO investors. Rs 111.44 crore raised through issue of new shares will be used for capital expenditure, Rs 220 crore to meet increased working capital requirement and Rs 55 crore to pay off debt.
Details about the company
Electronics Mart India was started by Pawan Kumar Bajaj and Karan Bajaj. It has 112 stores in 36 cities/towns, mostly in Andhra Pradesh, Telangana and NCR. Talking about the financial health of the company, in the last financial year 2021-22, the revenue from operations was Rs 4349.32 crore as compared to Rs 3201.88 crore a year ago.
On the other hand, in the financial year 2021-22, the net profit on an annual basis fell from Rs 103.89 crore to Rs 40.65 crore. The company’s working capital facilities stood at Rs 919.58 crore as of August 2022, while net debt stood at Rs 446.54 crore as of June 2022.
