Electronics Mart India IPO will open for subscription from 04 October 2022. the company aims for an issue size of ₹500Cr through this IPO.
Electronics Mart India Limited
The company is India’s 4th largest consumer durable and electronics retailer with dominance in the states of Telangana and Andhra Pradesh. It has been one of the fastest growing consumer durable & electronics retailers in India with a revenue CAGR of 25.60% from Financial Year 2015 to Financial Year 2020. It has consistently demonstrated profitability with robust operating performance and managed to post higher revenues even during the Covid-19 pandemic.
As on 15 August 2021, the company had 99 stores across 31 cities / urban agglomerates with a retail business area of 0.99 million sq. ft. The company offers a diversified range of products with a focus on large appliances (air conditioners, televisions, washing machines, and refrigerators), mobiles and small appliances, IT, and others. Its offerings include more than 6,000 SKUs across product categories from more than 70 consumer durable and electronic brands.
Incorporated in 1980, Electronics Mart India Limited is the 4th largest consumer durable and electronics retailer in India. The company offers a diversified range of products with a focus on large appliances (air conditioners, televisions, washing machines, and refrigerators), mobiles and small appliances, IT, and others. The company’s offering includes more than 6,000 SKUs (stock keeping units) across product categories from more than 70 consumer durable and electronic brands.
Electronics Mart India Limited business models:
1. Ownership Model: The company owns the underlying property including the land and building.
2. Lease Rental Model: The company has entered into a long-term lease arrangement with the property owner(s). As of August 15, 2021, out of the total 99 stores the company operates, eight stores are owned, 85 stores are under the long-term lease rental model and six stores are partly owned and partly leased.
The company operates its business activities across three channels retail, wholesale, and e-commerce.
Retail: As of August 15, 2021, out of 99 stores, 88 stores are Multi Brand Outlets (“MBOs”) and 11 stores are Exclusive Brand Outlets (“EBOs”). The revenue from the retail channel was Rs 29,312.84 million, Rs 28,991.35 million, and Rs 25,801.72 million for Financial Year 2021, 2020, and 2019, respectively.
Wholesale: The company is also engaged in the wholesale business of consumer durables, where the company supplies products to single-shop retailers in Andhra Pradesh and Telangana regions. The revenue from the wholesale channel was Rs. 530.53 million, Rs. 505.22 million, and Rs. 465.81 million for Financial Year 2021, 2020, and 2019, respectively.
E-Commerce: The e-commerce website currently functions as a catalog for the products that the company retail at stores. The revenue from the e-commerce channel was Rs. 444.57 million, Rs. 280.11 million, and Rs. 212.75 million for the Financial years 2021, 2020, and 2019, respectively.
Basic details about the company
| Full name | Electronics Mart India Limited |
| Sector | Retailing |
| Industry | Retailing |
| Company Website | https://www.electronicsmartindia.com/ |
Objects of the Issue
- Repayment / prepayment, in full or part, of all or certain borrowings availed by the Company.
- Funding of capital expenditure for expansion and opening of stores and warehouses.
- Funding incremental working capital requirements.
- General Corporate Purposes.
Dates to remember
| IPO Opening date | 04 October 2022 |
| IPO Closing | 07 October 2022 |
| Basis of Allotment | 12 October 2022 |
| Initiation Refunds | 13 October 2022 |
| Credit to Demat Account | 14 October 2022 |
| Listing Date | 17 October 2022 |
Electronics Mart India IPO Details
Electronics Mart India IPO Details
| Electronics Mart India IPO Date | Oct 4, 2022 to Oct 7, 2022 |
| Electronics Mart India IPO Face Value | ₹10 per share |
| Electronics Mart India IPO Price | ₹56 to ₹59 per share |
| Electronics Mart India IPO Lot Size | 254 Shares |
| Issue Size | [.] shares of ₹10 (aggregating up to ₹500.00 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
Electronics Mart India IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 254 | ₹14,986 |
| Retail (Max) | 13 | 3302 | ₹194,818 |
Electronics Mart India IPO Reservation Details
| NII (HNI) Shares Offered | 50% |
| Retail Shares Offered | 35% |
| QIB Shares Offered | 15% |
Electronics Mart Financial Performance
| FY 2019 | FY 2020 | FY 2021 | FY 2022 | Q1 FY 2023 | |
| Revenue | 2,823.6 | 3,172.5 | 3,201.9 | 4,349.3 | 1,408.4 |
| Expenses | 2,702.5 | 3,059.0 | 3,127.8 | 4,213.3 | 1,355.1 |
| Net income | 77.2 | 81.1 | 58.8 | 104.6 | 41.5 |
| Margin (%) | 2.73 | 2.56 | 1.84 | 2.40 | 2.95 |
Electronics Mart Valuations & Margins
| FY 2019 | FY 2020 | FY 2021 | FY 2022 | |
| EPS | 2.57 | 2.72 | 1.95 | 3.46 |
| PE ratio | – | – | – | – |
| RONW (%) | 22.64 | 18.84 | 11.92 | 17.42 |
| NAV | – | – | 16.40 | 19.88 |
| ROCE (%) | 25.94 | 20.28 | 14.35 | 18.87 |
| EBITDA (%) | 7.65 | 7.18 | 6.37 | 6.71 |
| Debt/Equity | – | 1.20 | 1.11 | 1.00 |
Company Promoters
- Pavan Kumar Bajaj
- Karan Baja
Electronics Mart India IPO Promoter Holding
| Pre Issue Share Holding | 99.99% |
| Post Issue Share Holding | 77.97% |
Lead Manager(s)
- Anand Rathi Securities Limited
- IIFL Securities Ltd
- JM Financial Consultants Private Limited
Electronics Mart Issue Registrar
KFIN TECHNOLOGIES LIMITED
Selenium Tower B, Plot No – 31 & 32,
Financial District, Nanakramguda,
Serilingampally, Hyderabad Rangareddi,
500 032, Telangana, India
Phone: +91 40 6716 2222
Email: emi.ipo@kfintech.com
Website: www.kfintech.com
Electronics Mart Contact Details
ELECTRONICS MART INDIA LIMITED
6-3-666/A1 to 7, 3rd and 4th Floors,
Opposite NIMS Hospital,
Punjagutta Main Road,
Hyderabad – 500 082, Telangana
Phone: +91 040 2323 0244
Email: cs@bajajelectronics.in
Website: www.electronicsmartindia.com
Electronics Mart IPO Allotment Status
Electronics Mart IPO allotment will be available on KFin Technologies’ website. Click on this link to get allotment status.
Final thoughts
Electronics Mart India IPO is going to hit Dalal street soon. applying for IPO is purely a personal choice. study well about the company and do subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.
Happy Investing
