#New Delhi: Consumer durables retail chain Electronics Mart India’s IPO is coming to market on Tuesday, October 4. Investors can bid for the IPO on October 7. The IPO was opened to anchor investors only yesterday. The company has targeted to raise Rs 500 crore through IPO.
Electronics Mart India is booming business in South India. The company has kept the price band of the IPO at Rs 56-59 per share. Market experts are also positive about this IPO. Even IPO listed shares in the gray market are getting good response.
50 percent shares of Electronics Mart India’s IPO are reserved for institutional investors. 35 percent shares remain for retail investors. Similarly, 15 percent shares have been reserved for non-institutional investors. It is known that the IPO shares will be allotted on October 12. It is likely to be listed on the stock market on October 17. Canara Bank Securities and IndSec Securities have given a subscribe rating to the IPO.
Good Response to Gray Market: Shares of Electronics Mart India were trading at a hefty premium in the gray market on October 3, a day before the issue opened, according to a report by Moneycontrol. Electronics Mart’s issue price is Rs 56-59, while its listed shares on the gray market are trading at Rs 32-33 above the issue price. Initially this stock was trading at a premium. Its GMP has steadily increased. However, it should be noted that it is not necessary that if the shares of an IPO are trading at a premium in the gray market, their listing in the stock market should also be at a premium.
Ramrama Market in South India: Electronics Mart India has 112 stores across 36 cities. Most of these stores are in Andhra Pradesh, Telangana and NCR. In the financial year 2021-22, the company’s revenue from operations was Rs.4349.22 crore. Which is more than the previous year. The revenue for the financial year 2020-21 was Tk 3201.88 crore. However, net profit fell to Tk 40.65 crore in the financial year 2021-22 from Tk 103.89 crore on annual basis. Whereas the net debt till June 2022 was Tk 446.54 crore.