Electronics Mart IPO 7.57 times subscribed on day 2; NII portion oversubscribed 11.74 times
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Mumbai: The Initial Public Offering (IPO) of Hyderabad-based consumer durable retail chain,Electronics Mart,the 4th largest and one of the fastest growing consumer durables and electronics retailers in India, received bids of 47,29,37,840 shares against the offered 6,25,00,000 equity shares, at a price band of ?56-59, according to the data available on the stock exchanges. Overall the issue was subscribed 7.57 times on the second day of bidding.
The reserved portion of non-institutional investors witnessed a subscription of 11.74 times.Retail Portion saw a strong demand and was subscribed 7.81times. The qualified institutional buyer portion was subscribed 4.01 times. The issue kicked off for subscription on Tuesday, October 04, and will be opened till Friday, October 07.
The offer consists of a fresh issue of equity shares aggregating to Rs 500 crore, with no offer for sale component.
Angel Broking, Elara Capital, ICICI Direct, Hem Securities, Choice Broking, Indsec and Nirmal Bang have recommended a ‘Subscribe’ rating to the issue. According to brokerage houses, Electronic Mart India Limited (EMIL) would continue to rise at a healthy pace in terms of store expansion, especially in North India, and given the customer shift toward modern format large retailers (as a one-stop shop experience with higher store keeping unit [SKU]) vs a distribution model. It is India's fourth largest and one of its fastest growing consumer durables and electronics stores. In terms of revenue, the company is also the largest regional organised player in the southern area, with leadership in the states of Telangana and Andhra Pradesh. Valuations appear reasonable considering the company’s strong and sustainable growth prospects and continued focus on maintaining balance of revenue growth with consistent margins in line with industry peers.
Anand Rathi Advisors Limited, IIFL Securities Limited and JM Financial Limited are the book running lead managers to the issue and KFin Technologies Limited is the registrar to the offer.The equity shares are proposed to be listed on BSE and NSE.
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