Electronics Mart India IPO kicks off: Should you subscribe?

New Delhi: The Rs 500-crore initial public offering (IPO) of Electronics Mart India (EMIL) kicked off for subscription on Tuesday, October 4. The company is selling its shares in the range of Rs 56-59 apiece.

Incorporated in 1980, Electronics Mart India is the fourth-largest consumer durable and electronics retailer in India with a leadership position in South India, particularly in the states of Telangana and Andhra Pradesh.

The issue, which entirely consists of the issuance of fresh equity shares with a face value of Rs 10 each, is open for subscription till Friday, October 7.

The net proceeds from the issue will be utilised towards the funding of capital expenditure for expansion, funding incremental working capital requirements, repayment or prepayment of certain borrowing and general corporate purposes.

The company offers a diversified range of products with a focus on large appliances, mobiles and small appliances, IT products and others of more than 70 brands. The company's offering includes more than 6,000 SKUs (stock-keeping units).

The company reported a net profit of Rs 103.89 crore with total revenue of Rs 4,353.07 crore during the financial year 2021-22. For the period ended on June 30, 2022, its profit stood at Rs 40.66 crore with revenue of Rs 1,410.25 crore.

On Monday, Electronics Mart India allotted 2,54,23,728 equity shares to 20 anchor investors for Rs 59 apiece, aggregating to about Rs 150 crore, the company said.