Electronics Mart India IPO: The three-day electrification of Electronics Mart India Limited’s public issue ended on Friday as the issue was subscribed 71.93 times on the last day of bidding. The Qualified Institutional Buyer share was subscribed 169.54 times. The reserve share of non-institutional investors witnessed 63.59 times subscription. The retail division got 19.71 times the subscription. After the closure of Electronics Mart IPO subscription, the bidders are now eagerly waiting for the Electronics Mart IPO allotment date, which is most likely on 12th October 2022.
Meanwhile, the gray market is also giving positive signs regarding the IPO of Electronics Mart after a strong response from the investors. As per market observers, Electronics Mart India Limited shares are available at a premium of 35 in the gray market today.
Electronics Mart IPO GMP Today
Market observers said Electronics Mart IPO Gray Market Premium (GMP) today is 35, which is 5 More Than Its Friday’s GMP 30 per. He added that strong investor response raised gray market expectations from the public issue, though Dalal Street sentiment was highly volatile throughout the week. He further added that the sentiment may further improve once there is a clear indication about a trend reversal in the secondary market. Electronics Mart’s IPO remains GMP around, say market observers 30 to 35, which is highly promising against its price band 56 to 59 per equity share.
What does this GMP mean?
Market Observers Said Electronics Mart IPO GMP Today 35, which means that the gray market is expecting the public issue to be listed on the Indian stock exchanges at approx. 94 ( 59 + 35) per equity share, nearly 60 per cent above its upper price band 59 per. This means that the gray market is expecting a listing premium of around 60 per cent from the public issue.
However, stock market experts said that one should not rely on the GMP of the public issue as it has nothing to do with the financial position of the company. He added that the gray market data is purely speculative and includes those who have a high stake in the public offering. Therefore, GMP can also be synthetic. He advised investors to follow the balance sheet of the company as it gives a solid and accurate picture of the company.
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.”
Giving a ‘buy’ tag to the Electronics Mart IPO, Nirmal Bang’s report states, “Being the fourth largest consumer durable consumer and electronics retailer in India and the largest in South India, EMI is priced from brands due to its scale. / Enjoys favorable margin terms – this is a major advantage.EMI has achieved growth with a revenue CAGR of 26% in FY15-20 (Pre-Covid) across all major consumer durables and electronics retailers in India in terms of growth and has also managed to deliver a respectable RoE of 17.4% during the covid hit year of FY22. We believe EMI is 21.8x FY22’s PE and 9.7x FY22’s At an attractive valuation of EV/EBITDA.
Electronics Mart IPO likely to be listed on BSE and NSE on 17 October 2022.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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