Electronics Mart India IPO: Electronics Mart India IPO (initial public offering), one of India's largest consumer durables and electronics retailers, opened today for subscription with a fixed price band of Rs 56-59 a share for its Rs 500 crore public offer. 

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How company intends to use IPO funds? 

 

The company intends to use money raised through IPO for its expansion business. Karan Bajaj, CEO, Electronics Mart India said, "Electronics Mart India plans to open 58-60 stores in the next 2-3 years." "We also plan to expand in Andhra, Telangana region and the Tier-II cities," added Bajaj. 

The company is working to tap into the premium phone market by introducing the newly launched phones in their retail stores to compete with the online e-commerce platforms. "Customers still visit stores for premium products to understand it and we try to provide them the best experience for their satisfaction. Our team provides good options with other benefits like cash back, credit cards discount among other," Bajaj noted. Funds will also be used for general corporate purposes. 

Half of the issue size has been reserved for qualified institutional investors, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.

 

 

 

 

Electronics Mart IPO 

 

The subscription will close on October 7. The IPO consists of a fresh issue of equity shares aggregating to Rs 500 crore, with no offer for sale component.

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. The company had 112 stores across 36 cities as of August this year. Its multi-brand outlets operate under the brand name Bajaj Electronics other than two specialised stores under the name 'Kitchen Stories', catering to kitchen specific-requirements and one specialised store format under the name 'Audio & Beyond', focusing on high-end home audio and home automation solutions.

Currently, EMIL has a leadership position in South India. In line with its cluster-focused expansion strategy, it plans to deepen its store network in Andhra Pradesh and Telangana and gradually expand in NCR. EMIL displays more than 6,000 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 FY22, the company's revenue from operations increased by 35.84 per cent to Rs Rs 4,349.32 crore from Rs 3,201.88 crore in the same period last year, while profit after tax surged 77.22 per cent to Rs 103.89 crore from Rs 58.62 crore during the same period, the statement noted.