Electronics Mart India IPO subscribed 37.24 times on last day of bidding

The final day of the IPO saw good response from investors. The issue was subscribed 37 times on October 7, the last day of bidding, as the participants bought 232.73 crore equity shares.

Retail investors, who were allocated 35 percent of the IPO shares, were the first to subscribe.

Non-institutional investors and qualified institutional investors bought 43.38 times and 70.85 times, respectively, and appeared to be bullish on the company.

A portion of the offer was reserved for qualified institutional investors.

On October 4th, the fourth largest electronic retailer in the southern region opened its public issue for subscription with an aim to raise up to 500 cr.

Expansion and opening of stores and warehouses will be one of the uses of the proceeds from the issue.

The issue is attractively priced at the higher end of the price range, with decent revenue growth, steady margin performance, and expectations of strong growth for consumer durables.

The IPO of Electronics Mart India is in the grey market.

Electronics Mart India is the largest organised player in the southern region in terms of revenue and has a strong presence in the two states. There are 112 stores in 36 countries.

In terms of revenues, the company expanded in Delhi. The company is focused on enhancing the sales volume with optimal product assortments in order to offer value for money. Canara Bank Securities said that retailers have one of the highest margin among peers with a good revenue growth.

There is a scope for organized electronic retail to grow due to rising per capita income, improved power situation and multiple financing options.

The issue can be used for a lower valuation. Canara Bank Securities suggested to subscribe to the issue for listing gains.

Tracxn is different because of India cost arbitrage or limited competitors.

The company has a leadership position in South India and is available at a discounted valuation as compared to its peer, which is trading at a P/E of 32.7x.

The business activities of Electronicsmart India in three channels of retail, wholesale and e- commerce contributed to the total revenues for the year.