Hyderabad-based consumer durable retail chain, Electronics Mart India Limited (“the Company/ EMIL”) has fixed the price band at Rs 56 to Rs 59 per Equity Share for its maiden public issue. The initial public offering (“IPO” or “Issue”) of the Company will open on Tuesday, 04th October 2022, for subscription and close on Friday, 07th October 2022. Investors can bid for a minimum of 254 Equity Shares and in multiples of 254 Equity Shares thereafter.
The Issue consists of a fresh issue of Equity Shares aggregating to Rs 5,000 million, with no offer for sale component.
EMIL is the fourth largest and one of the fastest growing consumer durables and electronics retailers in India with 1.12 million square feet of the retail business area. As on August 31, 2022, it had 112 stores across 36 cities / urban agglomerates, out of which, 100 stores are Multi Brand Outlets (“MBOs”) and 12 stores are Exclusive Brand Outlets (“EBOs”).
The Company operates 89 MBOs under the name “Bajaj Electronics” in Andhra and Telangana, eight MBO under the name of “Electronics Mart” in the NCR region, and two specialized stores under the name “Kitchen Stories” which cater to the kitchen-specific demands of their customers and one specialized store format under the name “Audio&Beyond” focusing on high-end home audio and home automation solutions.
Currently, EMILhas a leadership position in South India. It aims to continue to deepen its store network in its existing clusters to increase the market share in Telangana and Andhra Pradesh. It also intends to open and build the store network in the NCR by opening 26 MBOS with the proceeds of the IPO.
EMIL displays more than 6000 stock-keeping units(SKUs)across product categories from more than 70 consumer durable and electronic brands. It operates across three channels retail, wholesale, and e-commerce.
In FY 22 its revenue from operations increased significantly by 35.84 percent to Rs 4,349.32 crore from Rs 3,201.88 crore for the same period last year, primarily due to an increase in retail sales during the Financial Year 2022 by 35.03 percent. However, profit after tax increased by 77.22 percent from Rs 58.62 crore in Fiscal 2021 as compared to Rs 1,03.89 crore in Fiscal 2022. Revenue from operations has increased at a CAGR of 17.09 percent from Fiscal 2020 to Fiscal 2022, and as of FY21, its operating margins stood the second highest amongst its peers. For the three months ended June 30, 2022, its revenue from operations stood at Rs 1408.45 crore, and profit after tax stood at Rs 40.66 crore.
In case of any revision to the Price Band, the Bid/Issue Period will be extended by at least three additional Working Days after such revision in the Price Band, subject to the Bid/Issue Period not exceeding 10 Working Days. In cases of force majeure, strike, or similar circumstances, our Company in consultation with the BRLMs, for reasons to be recorded in writing, extends the Bid / Issue Period for a minimum of three Working Days, subject to the Bid/ Issue Period not exceeding 10 Working Days. Any revision in the Price Band and the revised Bid/Issue period, if applicable, will be widely disseminated by notification to the Stock Exchanges, by issuing a press release, and also by indicating the change on the terminals of the Syndicate Members, and by intimation to the Designated Intermediaries.