Electronics Mart IPO

Electronics Mart India Limited Is India’s fourth largest consumer durable and electronics store, and as of Financial Year 2020, they are the top revenue player in the Southern region, with strongholds in Telangana and Andhra Pradesh. Electronics Mart IPO will hit the stock market in 04 October 2022.

About Electronics Mart

They started Electronics Mart India Limited activities in 1980, and their income from operations has steadily increased since then.

With a revenue CAGR of 25.60 percent from Financial Year 2015 to Financial Year 2020, they have been one among India’s leading consumer durable and electronics retailers (Source: CRISIL Report).

With a strong operating performance, they have continuously proven profitability. EMIL has the greatest EBITDA margins among its rivals in Fiscal Year 2020. (Source: CRISIL Report).

Even though the country was dealing with the COVID-19 epidemic and a countrywide lockdown in Financial Year 2021, their Company was able to generate operational revenue of 32,018.76 million.

Footprints and Products

Their Company has 99 shops across 31 cities / urban agglomerates as of August 15, 2021, with a retail business area of 0.99 million sq. ft. More than 6,000 SKUs from more than 70 consumer durable and electrical brands are available in their portfolio.

They began their business operations as a private concern by opening our first consumer durable and electronic retail shop in Hyderabad, and they have developed a sustained market presence with more than 30 years of expertise.

They sell a wide range of products, with an emphasis on big appliances (air conditioners, televisions, washing machines, and refrigerators), mobile phones and small appliances, IT, and other items.

Business Model

Their business strategy is a hybrid of ownership and lease rental, as they focus on securing retail sites with great visibility and simple access for customers.

They own the underlying property, including the land and building, in the ownership model, and they enter into a long-term lease agreement with the property owner in the lease rental model (s).

As of August 15, 2021, eight of the 99 stores they manage are owned, 85 are leased for a lengthy period of time, and six are partially owned and partially leased.

Despite the ongoing COVID-19 epidemic, they continued to grow their retail network, opening 22 stores in their clusters of operations in the Financial Year 2021.

Electronics Mart IPO

Electronics Mart India Limited, headquartered in thane has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 300 crores and 6,070,675 equity share on 20 September 2021.

The offer includes 300 crores value fresh equity shares and there is an offer for sale (OFS) of 6,070,675 equity share by the promoters mentioned in the DRHP. They are also looking to for pre-ipo placement of INR 60 crores.

They got for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
		31-Mar-21	31-Mar-20	31-Mar-19
Total Assets		1,523.53	1,347.60	1,109.15
Total Revenue		3,207.37	3,179.02	2,826.10
Profit After Tax		58.62	81.61	77.10

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	1.95	1.95	3
Financial Year 2020	2.72	2.72	2
Financial Year 2019	2.57	2.57	1
Weighted Average	2.31	2.31

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

The following are some of the qualitative elements that go towards determining the Issue Price:

1. The company is India’s fourth largest consumer durables and electronics store, having a stronghold in South India. Based of the Company’s size and long-standing relationships with top consumer brands, they are able to obtain items at reasonable prices.
2. The company is among the fastest-growing consumer durables and electronics retailers in the business, with a track record of steady growth and profitability.
3. With cluster-based expansion, the firm’s market presence and geographic reach will grow.
4. The business strategy of the company allows for operational flexibility in order to establish a long-term sustainable footprint.

Electronics Mart IPO Peer Comparison

S. No.	Face Value	Company Name	PE
1	10	Aditya Vision Limited	46.98

Note: All financial data for listed industry peers is taken from the audited financial statements of the relevant businesses for Fiscal 2021, which can be found on the BSE website.

Electronics Mart IPO Details

IPO Opening Date	04 October 2022
IPO Closing Date	07 October 2022
Issue Type	Book Building
Face Value	10 per share
IPO Price	56 to 59 per equity share
Market Lot	254
Min Order Quantity	14896
Listing At	BSE, NSE
Issue Size	500 Crore
Fresh Issue	500 crore
Offer for Sale	6,070,675 Equity shares

Electronics Mart IPO Date

Electronics Mart IPO opening date is 04 October 2022, and the closing date is 06 October 2022. The Electronics Mart IPO issue may list in 17 October 2022.

IPO Opening Date	04 October 2022
IPO Closing Date	07 October 2022
Basis of Allotment Date	12 October 2022
Initiation of Refunds	13 October 2022
Credit of Shares to Demat Account	14 October 2022
IPO Listing Date	17 October 2022

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	35	Minimum level of 1 lot, based on availability, for every shareholder.

Electronics Mart IPO Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Electronics Mart IPO.

Electronics Mart IPO GMP

Electronics Mart IPO Grey Market Premium is INR 15.

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
October 2022
October 2022
October 2022
October 2022
October 2022
October 2022
October 2022
October 2022
October 2022
October 2022
30 September 2022	20	N/A	N/A
29 September 2022	15	N/A	N/A

Electronics Mart IPO Review

Electronics Mart IPO review : If you are looking for an answer to your question that Electronics Mart IPO is good or bad than you can apply for this IPO for long term view.

Electronics Mart IPO Risk

• The COVID-19 epidemic has had a substantial impact on their company in recent years and may continue to do so in the future.
• A significant portion of their business is based on a small number of brands.
• Certain procedures affecting their Company and Promoters may have a negative impact on their company if they are decided against them.
• They do not currently own the brand or logo under which they operate.
• Their inability to recognise and respond to changing client preferences or evolving trends in a timely manner may reduce demand for their products.
• Their outlets are mostly located in Telangana and Andhra Pradesh, and these states account for all of their retail sales.

Other Threats

• Their registered office, shops, and warehouses are all located in leasehold properties from which they operate.
• Their subsidiary has lost money in the past and may do so again in the future.
• Their failure to continue implementing their marketing and advertising activities, as well as brand development exercises, might have a negative impact on their company and operating performance.
• Their digital sales income is insignificant, and there is no guarantee that their online sales approach will be effective in the future.
• Payment of their Company’s statutory dues has been delayed and defaulted on.
• In Fiscal 2021, compared to prior years, the bad debts and sales return have increased significantly.

Presence

Before entering into new markets, they focus on extending their footprint in the regions where they operate, which has lead them to develop brand presence in Telangana and Andhra Pradesh.

This helps them analyze the market segment and consumer demand preferences by allowing target customers to identify with their brand as well as their product selection.

They think that by taking this strategy, they will be able to gain considerable market share and domination in the markets in which they compete.

In order to pursue their specified cluster-focused development strategy, they aim to continue to strengthen their store network in Andhra Pradesh and Telangana, as well as progressively extend their network in the NCR region.

Operations

They’ve worked with a number of significant companies for a long time, delivering consumer durables, electronics, mobile phones, and IT equipment.

The majority of their purchases are made directly from Original Equipment Manufacturers (OEMs) on advance payment or cash on delivery terms, putting their company on a firm footing that allows them to provide better prices and delivery conditions.

Their procurement operation for the Andhra Pradesh cluster is centralised at their regional headquarters in Vijayawada, where market demand for various items is continuously monitored, as well as client responses to new products released by brands.

They occasionally put purchases for various items based on a critical study of the consumers.

Electronics Mart IPO Brokerage views

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Electronics Mart IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
04 October 2022	1
05 October 2022	2
06 October 2022	3

Team

Their Board of Directors and senior management have a track record of success and a thorough grasp of the retail industry in India, as well as local consumer preferences.

Over the years, they feel that their steady senior management team has aided them in effectively implementing their development and operational objectives, as well as providing excellent support to their customers.

They also think that their employees have contributed to their success because the quality and efficiency of the services they deliver are reliant on them.

They believe in lifelong learning and have invested in their workers via frequent training programmes to improve skills and service standards, build loyalty, lower attrition rates, and boost productivity.

Promoters

• Pavan Kumar Bajaj
• Karan Bajaj

Promoter’s Holding

Pre Issue Share Holding	99.98%
Post Issue Share Holding