Stock markets have been very volatile this year. However, this has not deterred many companies from coming up with the IPOs, the latest among them being consumer durables retail chain Electronics Mart India Ltd. The company will be making its shares public through a Rs. 500 crores initial public offering (IPO). The issue will be open for subscription on October 4, 2022, and close on October 7, 2022, with a price band of Rs. 56-59 per share.
The company currently enjoys the 4th position in market leadership within the consumer durables and electronics space in India.
Let’s have a detailed look at this IPO and review some of the pros and cons of investing in it.
Here are the top details of the IPO that investors should know about:
Read more: How is the IPO allotment done?
As per grey market data, the shares of Electronics Mart India have already started commanding a premium of Rs. 25 per share.
Read more : What is grey market? How does trading happen in grey market?
As Covid-19 impact is seen to be fading away, people are gearing up for the festive season with surging demand in products such as clothing and electronics. This year, the consumer durable industry is expecting festive season sales to cover for the lost 2 years. Electronics Mart India is therefore timing its entry into the bourses very well.
Apart from being the 4th largest consumer electronics and durable retailer in India, the company is also the largest player in revenue terms as it commands a dominant market position in Andhra Pradesh and Telangana.
The company offers a vast range of products such as air conditioners, televisions, smartphones, washing machines, etc. These products are sold through 112 stores spread across 36 cities in India. The company operates these stores under brand names such as Bajaj Electronics, Kitchen Stories, Electronics Mart, and Audio & Beyond.
The company has built a strong market presence over three decades and with the funds gathered through the IPO, it is aiming to expand its store and warehouse network. Apart from this, the IPO proceeds will also be used to clear debt and fund working capital needs.
Here are some of the other facts that investors should know about this company:
Investors can refer the table below for a quick glance at the company’s financial performance:
Mar-22 | Mar-21 | Mar-20 | |
Total Assets (Cr.) | ₹ 1,825 | ₹ 1,523 | ₹ 1,348 |
Operating Revenue (Cr.) | ₹ 4,349 | ₹ 3,202 | ₹ 3,172 |
PAT (Cr.) | ₹ 105 | ₹ 59 | ₹ 81 |
Basic EPS | ₹ 3.46 | ₹ 1.95 | ₹ 2.72 |
Diluted EPS | ₹ 3.46 | ₹ 1.95 | ₹ 2.72 |
RONW | 17.42% | 11.92% | 18.84% |
Some of the company’s strengths are:
Investors must take note of the below-mentioned drawbacks about the company:
Here are some of the top risks surrounding this company:
Electronics Mart India Ltd has shown positive performance even during the Covid-19 period and managed to open new stores during this phase. This reflects the financial strength of the company. Investors can therefore look forward to this IPO and take an investment decision basis the factors mentioned above.
Head over to the Fisdom App to apply for the IPO.
To invest in Electronics Mart India Ltd IPO, you can use your Demat account with Fisdom. If you don’t have a Demat account, you can download this app today and complete a simple e-KYC to get started.
o check the allotment status of Electronics Mart India Ltd IPO, you can visit the Fisdom app. You can also check the same on the BSE website or the website of the issue registrar.
No, there is no guarantee of getting an allotment in any IPO since the IPO allotment happens through a draw system.
Yes, after the allotment, the company’s shares will be available publicly for trading/investing on stock exchanges. You can then buy them through any BSE or NSE registered stockbroker.
October 07, 2022, is when the Electronics Mart India Ltd IPO subscription ends.
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