Electronics Mart IPO

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Electronics Mart IPO Subscription Details

  • Open Date 04 Oct
  • Close Date 07 Oct
  • Lot Size 254
  • IPO Size ₹ 500 Cr
  • IPO Price Range ₹ 56 to ₹59
  • Min Investment ₹ 14224
  • Listing Exchange BSE, NSE
  • Basis of Allotment 12 Oct
  • Refunds 13 Oct
  • Credit to Demat Account 14 Oct
  • Listing Date 17 Oct

Electronics Mart IPO Subscription Status

Date QIB NII Retail TOTAL
4-Oct-22 1.68x 1.04x 1.98x 1.69x
6-Oct-22 4.01x 11.74x 7.81x 7.57x
7-Oct-22 169.54x 63.59x 19.71x 71.93x

Electronics Mart IPO Synopsis

Electronics Mart India IPO opens on 4th October and closes on 7th October. The IPO issue comprises of fresh issue of equity shares worth Rs 500 crore. The lot size is set at 254 share per lot and the price range is fixed at Rs. 56 – Rs. 59. The shares will be allotted on 12th October while the IPO listing date is 17th October. The book running lead managers to the issue are IIFL Securities Ltd, Anand Rathi Advisors Ltd and JM Financial Ltd. The promoters are Pavan Kumar Bajaj and Karan Bajaj. 

Objectives of Electronics Mart IPO

1. Rs.133.87 crores of the net proceeds are to be used to fund capital expenditures of the company, for expansion and opening of new stores and warehouses.
2.  Rs.200 crore is to be used to fund the incremental working capital requirements.
3. Rs.50 crore is to be used to prepay or repay the debts undertaken by the company.

Electronics Mart IPO Videos

About Electronics Mart

Founded in 1980, Hyderabad- based Electronics Mart India Ltd, is the 4th largest consumer durable and electronics retailer in the country, in FY2020 in terms of revenue. The company is concentrated in the states of Telangana and Andhra Pradesh. Their revenue has grown at a CAGR of 25.60% from FY15 to FY20. The company aims at further strengthening its presence in the Southern part of India, before venturing out to more states across the country. The company has 99 stores spread across 31 cities and has a retail business area of 0.99 million sq ft, as on 15 August, 2021.Out of the 99 stores, 8 stores are owned by the company, 85 stores are under a long-term lease and 6 stores are partly leased and partly owned. Despite the pandemic, the company managed to open 22 new stores in FY21. 

Electronics Mart India offers a wide variety of products including small appliances, mobiles, large appliances like TVs, air conditioners, washing machines and refrigerators, IT and other products. The business activities are divided across 3 channels- retail, wholesale and e-commerce. As on 15 August, 2021, out of the 99 stores operated by the company, 88 are MBOs and 11 are EBOs. 85 MBOs operate under the name “Bajaj Electronics”, 1 MBO operates under the name “Tirupati Electronics” and there are 2 specialized stores that operate under the name “Kitchen Stories”. In 2017 the company diversified its operations into the e-commerce field and in FY21, the revenue from online sales stood at Rs.44.46 crores i.e. 1.39% of the total revenue from operations of that year.

 

Related Articles - Know about Electronics Mart IPO GMP


 

Profit and Loss

Balance Sheet

Particulars (in Rs. Crores) FY22 FY21 FY20
Revenue 4349.3 3201.88 3172.5
EBITDA 291.9 203.88 227.64
PAT 103.8 58.62 81.60

 

Particulars (in Rs. Crores) FY22 FY21 FY20
Total Assets 1824.74 1523.53 1347.6
Share Capital 300 300 300
Total Borrowings 593.6 547.95 520.54

 

Particulars (in Rs. Crores) FY22 FY21 FY20
Net cash generated from/(used in) operating activities 121.59 64.0 36.0
Net cash from / (used in) investing activities 67.85 59.94 70.34
Net cash flow from / (used in) financing activities 54.37 56.12 70.64
Cash and Cash Equivalents at the end of the year / period 34.39 35.02 87.07

Peer Comparison

Name of the Company Total Revenue EBITDA Margin PAT Margin ROCE ROE
Reliance Retail 1303.7 7.10% 4.30% 36.20% 47.80%
Croma 51.5 3.50% -4.00% 12.20% 123.70%
Electronics Mart India 31.7 7.20% 2.60% 18.30% 20.80%
Sathya 11.9 1.40% 0.60% 19.70% 18.40%
Sargam 9.2 2.70% 0.70% 16.10% 9.90%
Girias 8.4 3.90% 1.25% 14.50% 7.20%
Aditya vision 8 4.30% 1.70% 26.70% 43.10%
Adishwar 3.5 3.90% 0.50% 11.90% 3.20%
Viveks 2.5 -4.50% -8.50% -22.10% -


Electronics Mart IPO Key Points

  • Strengths

    1. Electronics Mart India is the 4th largest consumer durable and electronics retailer in India along with having a leadership position in Southern India, in terms of revenue. They are mainly concentrated in the states of Andhra Pradesh and Telangana.
    2. They have a track record of consistent growth and have grown at steadily from 53 stores in FY19 to 99 stores as on August 15, 2021.
    3. They use a cluster-based approach in order to expand their stores which helps them increase their geographical reach and market presence.
    4. The products offered by the company are varied and cater to a lot of the customer’s wants and needs, all in one place.
    The company has 7 large warehouses which are very strategically managed using stringent inventory management techniques and IT.

  • Risks

    1. As the company is dependent on external sources for its products, any delay or disruption in supply will have an adverse effect on the business operations and financials.

    2. A substantial part of the revenue is dependent on a fixed number of brands. If there is a decrease in the volume supplied by these brands, it will affect the profitability as well as revenue of Electronics Mart India.

    3. The industry is open to new entrants and thus very competitive in nature.

    4. Expanding into new geographies may lead the company to realize losses in some of their investments.

How to apply for IPO?

  • Login to your 5paisa account and select the issue in the current IPO section

  • Enter the number of lots and price at which you wish to apply for

  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

  • You will receive a mandate notification to block funds in your UPI app

  • Approve the mandate request on your UPI and funds will be blocked

Electronics Mart IPO FAQs

What is the size of Electronics Mart India IPO issue?

The Electronics Mart India IPO issue comprises of fresh issue of equity shares worth Rs 500 crore.

Where is Electronics Mart India Ltd IPO going to be listed?

The Electronics Mart India Ltd IPO going to be listed in the NSE and BSE both.

Who is the registrar to the offer?

Kfin Technologies Pvt Ltd is the registrar to the Electronics Mart India Ltd IPO.

How do I check the allotment status?

Way to check 1-  First you need to go to the registrar’s site- Kfin Technologies Pvt Ltd and then visit the Electronics Mart India Ltd IPO allotment page. From the drop down menu, select Electronics Mart India Ltd. Then, enter your PAN card details and select the application type- ASBA or Non-ASBA and enter the required details. After this the status is displayed on the screen.

Way to check 2- Visit the BSE application website page, select equity and then select Electronics Mart India Ltd from the drop down menu. After entering your PAN card details and application number, the status is displayed on the screen.

What is the lot size, minimum and maximum investment required for the Electronics Mart India IPO?

The lot size of the Electronics Mart India Ltd IPO is 254 shares per lot. A retail investor can make a minimum investment of Rs. 14968 (1 Lots at Rs.56) and a maximum of Rs. 194818 (13 lots at Rs. 59).

What is the price band of the IPO?

The price band of the Electronics Mart India Ltd IPO is set at Rs. 56 on the lower band and Rs. 59 on the upper band. 

When does the Electronics Mart India issue open and close?

The issue opens on 4th October and closes on 7th October.

Who are the promoters/key personnels of Electronics Mart India?

Promoters of Electronics Mart India include Pavan Kumar Bajaj and Karan Baja.

What is the allotment date of Electronics Mart India?

The allotment date of Electronics Mart India is 12th October.

What is the Electronics Mart India listing date?

The Electronics Mart India IPO will be listed on 17th October.

Who are the book runners for Electronics Mart India IPO?

IIFL Securities Ltd, Anand Rathi Advisors Ltd and JM Financial Ltd are the lead managers to the issue.

What is the objective of the issue?

The proceeds from the issue will be used as follows:

1. Rs.133.87 crores of the net proceeds are to be used to fund capital expenditures of the company, for expansion and opening of new stores and warehouses.
2. Rs.200 crore is to be used to fund the incremental working capital requirements.
3. Rs.50 crore is to be used to prepay or repay the debts undertaken by the company.

How to apply for the Electronics Mart India IPO?

 To apply for the Electronics Mart India Ltd IPO, follow the steps given below
  
●  Login to your 5paisa account and select the issue in the current IPO section
●  Enter the number of lots and price at which you wish to apply for
●  Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange
●  You will receive a mandate notification to block funds in your UPI app

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