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Electronics Mart IPO subscribed 1.7 times on Day 1

Electronics Mart IPO subscribed 1.7 times on Day 1

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By Sandeep Singh  Oct 5, 2022 6:57:22 PM IST (Updated)

Electronics Mart IPO: Potential investors can bid for Electronics Mart shares in a price band of Rs 56-59 apiece in multiples of 254 under the IPO, which will be open for three trading days till October 7.

Electronics Mart's initial public offer (IPO) to raise up to Rs 500 crore was subscribed 1.7 times on Tuesday, the first day of the bidding process. The public offer of the consumer durables and electronics retailer — which entirely comprises fresh issuance of shares — will be open for three trading days till Friday, October 7. The market remained shut on Wednesday for Dussehra.

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By the end of the day, the Electronics Mart IPO received bids for 10.6 crore shares as against the total 6.3 crore shares on offer, according to provisional exchange data.
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.
Under the IPO, Electronics Mart shares are available for bidding in a price range of Rs 56-59 apiece in multiples of 254. This makes one lot of shares worth Rs 14,224-14,986.
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. (Read more on Electronics Mart IPO)
Nirmal Bang finds the IPO valuation attractive and recommends potential investors subscribe to the issue.
Electronics Mart enjoys favourable terms of pricing and margins from brands
due to its scale, which is a key advantage for the company, the brokerage said.
"It has demonstrated a superior performance among all major consumer durable and electronics retailers in India in terms of growth and also
managed to deliver a respectable RoE of 17.4 percent during the COVID-impacted year," said the brokerage.
Under the IPO, Electronics Mart is being offered at a price-to-earnings ratio of 21.8 times the earnings for the year ended March 2022, according to Nirmal Bang.
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