Electronics Mart IPO begins on October 4: Electronics Mart India (EMIL) is scheduled to go public , with the Initial Public Offering (IPO) open for registration on October 4, today. The subscription period will end on the 7th of October. The company is a seller of electronic, mobile home equipment, other products from a variety of brands. The company’s IPO will consist of the issue of equity shares that have a an face value of 10 per. The promoters will dilute 22.03 percent of the 100 percent shares of the company. The QIB allocation as part of this IPO will be 50 percent, while 15% and 35 percent of shares are made available for non-institutional investors and retail investors.
If you’ve thought of investing your money into Electronics Mart India (EMIL) IPO here are the essential things to be aware of
Electronics Mart IPO Price Band
EMIL has set the price range for the IPO that ranges from between Rs 56 and Rs 59. The entire issue will come as an influx of shares that add up to 500 crore.
Electronics Mart IPO Lot Size
The minimum size of a lot of 254 shares. Retail investors may apply for a maximum of 1 and up to 13 lots, which is 3302 shares. If you are in the upper end within the band of prices one lot size could cost Rs 14,986.
The performance of EMIL during the last Financial Year
For FY2022 EMIL posted a net profit of the sum of 103.89 crore based on revenues of 4,349 crore. In the quarter that ended in June of 2022 EMIL had a reported net income of 40.66 crore, and the company earned Rs 1,410.25 millions in sales.
Electronics Mart IPO Objective
The company announced that it plans to use the net proceeds of the IPO to finance its capital expenditure, to support increasing working capital requirements, and to pay off debt. The proceeds could also be used to fund general corporate goals.
Electronics Mart IPO Allotment Process
The final allocation of shares should be made public by the 12th of October, with the an initialization of the refund by October 13. The transfer of shares allotted in Demat account Demat account will be credited at the end of October.
Electronics Mart IPO Listing Date
EMIL is expected to debut on the market in October. The book-running lead managers responsible for an EMIL IPO issue are JM Financial IIFL Securities and Anand Rathi Securities.
Electronics Mart IPO GMP Today
According to market analysts, Electronics Mart India shares are trading at a premium, in the grey market, or grey premium (GMP) of around Rs 31 in the current grey market. The shares of the company are expected to be listed on exchanges on Monday 17 October 2022.
Electronics Mart IPO: Should you Subscribe?
“In terms of valuation the post-issue PE amounts to 21.8x FY22 earnings per share (at the top of the price band for issue) which is a low figure in comparison to its rival Aditya Vision Limited. Furthermore, EMIL has better revenue growth (CAGR 17 percent) over two years, a higher returns on equity, and an expansion plans in the works. With all the positive aspects and the fact that we think this valuation is within acceptable levels. We therefore recommend that you subscribe to the issue.” stated brokerage Angel One.
The company was founded in 1980. Electronics Mart India today operates more than 112 stores across 36 cities, with the largest concentration within Andhra Pradesh, Telangana in NCR. It is the fourth-largest consumer electronics and durable retailer in India.
The company also has specialized stores under the name Kitchen Stories which cater to kitchen specific-requirements. There is an additional store format, called Audio & Beyond that focuses on home or audio products. EMIL has a brand name that is owned by Bajaj Electronics used to market every product