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Electronics Mart's Rs 500-crore IPO opens — here's all you need to know

Electronics Mart's Rs 500-crore IPO opens — here's all you need to know

Electronics Mart's Rs 500-crore IPO opens — here's all you need to know
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By Sandeep Singh  Oct 4, 2022 1:04:36 PM IST (Updated)

Electronics Mart launched an IPO on Tuesday to raise up to Rs 500 crore. Potential investors will be able to bid for Electronics Mart in a price band of Rs 56-59 apiece in multiples of 254 under the initial share sale.

Electronics Mart — a retailer of consumer durables and electronics — launched an initial public offer (IPO) on Tuesday to raise up to Rs 500 crore. The public offer, comprising fresh issuance of shares which means the proceeds will go to the company, will be open for three trading days till Friday, October 7.

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Here are key things to know about the Electronics Mart issue:
Important dates
The basis of allotment is likely to be finalised on October 12 and the credit of shares on October 14. Electronics Mart shares will be likely listed on bourses BSE and NSE on October 17.
Issue price and lot size
Potential investors will be able to bid for Electronics Mart in a price band of Rs 56-59 apiece in multiples of 254. This means one lot will be worth Rs 14,224-14,986 for bidding.
Investor quota
Up to 50 percent of the IPO is reserved for qualified institutional buyers (QIBs), 15 percent for non-institutional investors (NIIs) and 35 percent for retail investors.
Financials
Incorporated in 1980, Electronics Mart is one of the largest retailers of consumer durables and electronics in the country, with a total of 112 stores as of August 31, 2022.
For the year ended March 2022, its net profit stood at Rs 103.9 crore, up 77.2 percent compared with the corresponding period a year ago, according to its draft red herring prospectus.
Its EBITDA margin improved to 6.71 percent in the year ended March 2022, from 6.37 percent the previous year.
Should you subscribe to the Electronics Mart IPO?
A number of brokerages recommend subscribing the the issue. "The post-issue P/E works out to be 21.8x the earnings per share of the year ended March 2022 (at the upper end of the issue price band), which is low compared to its peer Aditya Vision. EMIL has better revenue growth over two years, a better return on equity and an expansion plan on the cards... We believe this valuation is at reasonable levels," Angel Broking said in a research report.
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