Electronics Mart shares make a solid debut — shares list at premium over issue price

Electronics Mart — a retailer of consumer durables and electronics — made a strong debut in the secondary market on Monday. Its stock listed at Rs 89.4 apiece on BSE — a premium of 51.5 percent over the upper end of its IPO price range. On NSE, the stock began its journey at Rs 90, a premium of 52.5 percent.

The stock closed at Rs 84.5 apiece on BSE and Rs 83.7 apiece on NSE — a premium of 42-43 percent.

The listing was in line with the trend in the grey market — an unofficial market for unlisted securities — over the past few days. Dealers said the company had commanded a grey market premium of Rs 25-35 since the launch of the IPO.

"The response of investors seems to be very selective in the primary market. The IPO was priced reasonably leaving enough on table for investors," Abhay Doshi, Co-Founder of Unlisted Arena — a portal that tracks grey markets and deals in unlisted securities — told CNBCTV18.com.

The initial share sale of Electronics Mart, to raise up to Rs 500 crore, saw a strong response from investors, especially qualified institutional buyers and high net worth individuals. The IPO concluded on October 7 with an overall subscription of 71.9 times the equity on offer.

Up to 50 percent of the public offer was reserved for QIBs, 15 percent for non-institutional investors (NIIs) and 35 percent for retail investors.

Potential investors could bid for Electronics Mart shares in a price range of Rs 56-59 apiece in multiples of 254 under the IPO.