One of the biggest electronic goods retailers in India, Electronics Mart's initial public offering (IPO) will be open for subscription on October 4 and close on October 7. The retail company has set its price band at Rs 56-59.
The anchor book will open on Monday, October 3, and investors will be allowed to make a minimum bid of 254 equity shares and in multiples. The basis of allotment will be on October 12, and the credit of shares on October 14. The company will make its debut on the bourses on October 17.
The company had filed draft papers with the markets regulator in September 2021 to raise Rs 500 crore through the fresh issues. Of the total proceeds, Rs 111.44 crore will be used for capital expenditure, Rs 220 crore for incremental working capital requirements, and Rs 550 crore will be used to repay its debt.
Of the fresh issue, 35 percent has been allocated for retail investors, while qualified institutional buyers will have half the issue reserved for them. Non-institutional investors will have 35 percent of the issue reserved.
KFin Technologies Limited is the registrar for the issue, while Anand Rathi Advisors, IIFL Securities and JM Financial are the lead managers of the issue.
Electronics Mart India Ltd was founded by Pavan Kumar Bajaj and Karan Bajaj in 1980. It is the fourth largest electronic retailer in India and sells products like air conditioners, televisions, washing machines, refrigerators, mobiles, small appliances, IT hardware and others from over 70 brands.
The company has 6,000 SKUs (stock-keeping units) and operates and manages 112 stores across 36 cities or urban agglomerates, predominantly in Andhra Pradesh, Telangana and the NCR.
The working capital of Electronics Mart stood at Rs 919.58 crore as of August 2022, and the total debt obligations stood at Rs 446.54 crore as of June 2022. For FY22, the company's revenue from operations stood at Rs 4349.32 crore against Rs 3201.88 crore in the year-ago period. The net profit stood at Rs 40.65 crore against Rs 103.89 crore in the preceding fiscal.
First Published: Sept 28, 2022 8:57 AM IST