Electronics Mart IPO to run from October 4-7, eyes Rs 500 crore fundraise

Representative Image

The initial public offering (IPO) of consumer durables retail chain Electronics Mart India Ltd will open for subscription on 4 October and close on 7 October.

Anchor investors can place their bids on 3 October. The finalisation of the basis of allotment will take place on 12 October and shares will be credited to the demat account of successful bidders on 14 October. Electronics Mart will make its stock market debut on 17 October.

In September 2021, the firm filed draft papers with SEBI to raise around Rs 500 crore via fresh issue.

The company plans to utilise the proceeds worth Rs 111.44 crore for capital expenditure and Rs 220 crore for incremental working capital requirements. Additionally, the company will use Rs 55 crore to repay its debt.

As of August 2022, working capital facilities of the company stood at Rs 919.58 crore, while its net debt was Rs 446.54 crore as of June 2022.

Anand Rathi Advisors, IIFL Securities and JM Financial are the lead managers to the issue.

Electronics Mart India Ltd (EMIL) was founded by Pavan Kumar Bajaj and Karan Bajaj as a proprietary concern with a consumer durables and electronics store under the name of 'Bajaj Electronics’.

It operates and manages 112 stores with a retail business area of 1.12 million sq. ft., located across 36 cities/urban agglomerates, predominantly in Andhra Pradesh, Telangana and NCR.

For FY22, its revenue from operations was at Rs 4349.32 crore, as against Rs 3201.88 crore a year ago. Net profit for the year stood at Rs 40.65 crore versus Rs 103.89 crore last year.