Electronics Mart India IPO: Check GMP as subscription opens next week

As per market observers, Electronics Mart India shares are commanding a premium or grey market premium (GMP) of ₹20 per share in the grey market today. The company’s shares are expected to list on stock exchanges on Monday, October 17, 2022.

Electronics Mart India IPO consists of a fresh issue of equity shares aggregating to ₹500 crore, with no offer for sale (OFS) component and the company in its draft IPO papers said that it intends to utilise the net proceeds to fund its capital expenditure, support incremental working capital requirements and pay debt and will also be used for general corporate purposes.

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

Anand Rathi Advisors, IIFL Securities and JM Financial are the book running lead managers to the initial share sale. KFin Technologies Limited is the registrar of the public issue.

Electronics Mart India Ltd (EMIL) was founded by Pavan Kumar Bajaj and Karan Bajaj as a proprietary concern with a consumer durables and electronics store under the name of Bajaj Electronics. The company had 112 stores across 36 cities as of August this year.

Its multi-brand outlets operate under the brand name Bajaj Electronics other than two specialised stores under the name ‘Kitchen Stories’, catering to kitchen specific-requirements and one specialised store format under the name ‘Audio & Beyond’, focusing on high-end home audio and home automation solutions.

In FY22, the company’s revenue from operations increased by 36% to ₹435 crore from ₹320 crore in the same period last year, while profit after tax surged 77% to ₹104 crore from ₹58.6 crore during the same period.