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Electronics Mart India, a retailer of electronic items and consumer durables, is planning to raise Rs 500 crore through an initial public offering. The IPO subscription will open on October 4 and close on October 7, 2022. The price band is fixed at Rs 56-59 per equity share. The face value of the share is Rs 10 per share.
The subscription for anchor investors will open on October 3, 2022 (Monday). Investors can make a minimum bid of 254 equity shares and in multiples thereof.
Company Summary
Electronics Mart India is the fourth largest and one of the fastest growing consumer durables and electronics retailers in India, according to its red herring prospectus. The company is the largest regional organised player in the southern region in terms of revenue with a significant presence in Telangana and Andhra Pradesh.
The company operates 112 stores across 36 cities and urban agglomerates with more than 6,000 (stock keeping units) SKUs across product categories from more than 70 consumer durable and electronic brands.. The electronics retailer has witnessed a revenue CAGR of 17.90% from between fiscal 2016 and 2021.The retailer offers a diversified range of products with focus on large appliances that includes air conditioners, televisions, washing machines and refrigerators. The company also sells mobiles, small appliances and IT-related products.
The company’s business model is a mix of ownership and lease rental model, as the retailer focuses to secure retail spaces which ensures high visibility and easy accessibility to customers. The company has a total retail space of 11.2 lakh sq. ft. as on August 31, 2022. The company has 100 Multi Brand Outlets (“MBOs”) and 12 Exclusive Brand Outlets (“EBOs”).
Company Strengths
- The company is one of the largest consumer durable and electronics retailer in India with a leadership position in South India.
- Long-standing relationship with leading consumer brands that enables the company to procure products at competitive price.
- Strategically located logistics and warehousing facilities backed by robust inventory management systems.
- Well trained in-house floor managers and section managers’ sales teams.
- Consistent track record of revenue growth and industry leading profitability.
- Increasing market presence and geographic reach with cluster-based expansion.
- Wide range of products across multiple categories, brands and price points.
- Experienced management team with a proven track record.
Company Financials
Period Ended | Q1FY23 | FY22 | FY21 | FY20 |
Total Assets | 1755.58 | 1824.74 | 1523.53 | 1347.6 |
Total Revenue | 1410.25 | 4353.07 | 3207.37 | 3179.02 |
Profit After Tax | 40.66 | 103.89 | 58.62 | 81.61 |
Net Worth | 637.87 | 596.51 | 491.92 | 433.08 |
EBITDA | 97.04 | 291.94 | 203.88 | 227.64 |
EBITDA Margins (in %) | 6.89 | 6.71 | 6.37 | 7.18 |
Return on Equity (in %) | 6.37 | 17.42 | 11.92 | 18.84 |
Return on Capital Employed (in %) | 6.95 | 18.87 | 14.35 | 20.28 |
*All numbers are in INR crore except percentage
Purpose of the IPO
The company plans to utilise the net proceeds for the following purposes:
- Funding of capital expenditure for expansion and opening of stores and warehouses aggregating to Rs 111.44 crore.
- Funding working capital requirements totalling Rs 220 crore.
- Repayment or prepayment, in full or part, of all or certain borrowings availed by the company Rs 55 crore.
- General corporate purpose.
Company Promoters
Pavan Kumar Bajaj and Karan Bajaj are the promoters of the company.
IPO Details
IPO Start date | Oct 4, 2022 |
IPO End date | Oct 7, 2022 |
Face value | Rs 10 per share |
Price band | Rs 56-59 per share |
Lot Size | 254 equity shares |
Issue size | Rs 500 crore |
Issue Type | Book Built Issue IPO |
Listing | BSE, NSE |
IPO Lot Size Details
Application | Lots | Shares | Amount |
Retail (Minimum) | 1 | 254 | Rs 14,986 |
Retail (Maximum) | 13 | 3302 | Rs 194,818 |
Small HNI (Minimum) | 14 | 3,556 | Rs 209,804 |
Small HNI (Maximum) | 66 | 16,764 | Rs 9,89,076 |
Large HNI (Minimum) | 67 | 17,018 | Rs 10,04,062 |
IPO Allotment Details
Timeline | Important dates |
Basis of allotment | Oct 12, 2022 |
Initiation of refunds | Oct 13, 2022 |
Credit of shares to demat account | Oct 14, 2022 |
Listing date | Oct 17, 2022 |
To check allotment status, click here