Electronics Mart India IPO: GMP eyes listing of shares after allotment

The share allocation basis for Electronics Mart India IPO has been finalized and all eyes are now on the share listing. The company’s shares are expected to be listed on the stock exchanges next week on Monday, October 17, 2022.

According to market observers, Electronics Mart is commanding a premium or gray market premium (GMP) of India’s stock 24 in the gray market today.

Electronics Mart India IPO A new issue of equity shares in the aggregate was comprised of 500 crores with No Offer for Sale (OFS) component. The price range for the offer was 56-59 per share. The company has said in its draft IPO papers that it intends to use the net proceeds for its capital expenditure, supporting incremental working capital requirements and paying down debt and will also be used for general corporate purposes. .

Established in 1980, Electronics Mart India Limited (EMIL) was established by Pawan Kumar Bajaj and Karan Bajaj as a proprietary concern with a consumer durables and electronics store under the name Bajaj Electronics. As of August 31, 2022, out of 112 stores, 100 are Multi Brand Outlets (MBOs) and 12 are Exclusive Brand Outlets (EBOs).

Anand Rathi was the manager of Shares and Stock Brokers, IIFL Securities and JM Financial Offers and Keffin Technologies Limited was the registrar of the initial share sale.

Speaking on the fundamentals of Electronics Mart India Limited, Aastha Jain, Senior Research Analyst, Hem Securities said, “The scale of operations of the company as well as its long-standing relationship with leading consumer brands enable it to procure products at competitive rates. The company is one of the fastest growing consumer durables and electronics retailer with a consistent track record of growth and industry-leading profitability and has a business model that provides operational flexibility to create a long-term sustainable footprint.”