Electronics Mart IPO | Review

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Electronics Mart India Limited (EMIL) has come up with an initial public offer (IPO). It will open on October 04-07, 2022 at Rs.56-59 a share. The IPO issue size is around Rs. 500 crore. The minimum bid will be for 254 shares and in its multiples thereafter.

Overview

Electronics Mart India Limited is the 4th largest and one of the fastest growing consumer durables and electronics retailers in India of Financial Year 2021. It is the largest regional organized player in the southern region in revenue terms with dominance in the states of Telangana and Andhra Pradesh. The company commenced its business operations in 1980 and since then there has been a steady rise in its revenue from operations. It has been one of the fastest growing consumer durable & electronics retailers in India with a revenue CAGR of 17.90% from Financial Year 2016-2021. The company has consistently demonstrated profitability with a robust operating performance. EMIL had the second highest operating margin amongst our peers in Fiscal Year 2021.

Electronics Mart offers a diversified range of products with focus on large appliances (air conditioners, televisions, washing machines and refrigerators), mobiles and small appliances, IT and others. Its offering includes more than 6,000 SKUs across product categories from more than 70 consumer durable and electronic brands. The company operates its business activities across three channels of retail, wholesale and e-commerce.

Website – https://www.electronicsmartindia.com/

Promoters

Pavan Kumar Bajaj – 50.69%

Karan Bajaj – 49.29%

Promoter Holding

Pre-Issue Shareholding – 99.98%

Post-Issue Shareholding – 77.97%

Strength & Weakness

Strengths	Weaknesses
4th largest consumer durable and electronics retailer in India	Majority stores are presently concentrated in South India
Fastest growing consumer durable and electronics retailer	Majority of our retail sales from Telangana and Andhra Pradesh
Consistent track record of growth	Competition from online retailers
Strategically located logistics and warehousing facilities	Large part of revenues is dependent on top 5 brands
Diversified product offering	Competitive industry
Stringent inventory management	Highly dependent on the brand owners
Increasing market presence	Largely depend on our brand reputation
Experienced management team	Delays and defaults in payment of statutory dues

Products

Refrigerators	Television	Air Conditioners
Washing Machines	Mobiles	Tablets
Smartwatches	Laptops	PCs
Printers	Headphone	Bluetooth Speakers
Coolers	Geysers	Water Purifiers

Partner Brands

LG	Panasonic	Philips
Sony	Godrej	Daikin
Symphony	Godrej	Voltas
Oppo	OnePlus	Vivo
Dell	Havells	Orient
AO Smith	Ariston Thermo	Butterfly
Miele	Liebherr	Franke Faber

Competitors

Reliance Retail

Croma

Vijay Sales

Company Financials

Year	Revenue (in Crore)	Profit (in Crore)
31-Mar-2020	3,179.02	81.61
31-Mar-2021	3,207.37	58.62
31-Mar-2022	4,353.07	103.89
30-Jun-2022	1,410.25	40.65

Object of Issue

1) Funding of capital expenditure for expansion and opening of stores and warehouses.

2) Funding incremental working capital requirements.

3) Repayment / prepayment, in full or part, of all or certain borrowings availed by our Company.

4) General Corporate Purposes.

Electronics Mart IPO Lot Size

Application	Lot	Shares	Amount
Retail (Min)	1	254	Rs.14,986
Retail (Max)	13	3,302	Rs.1,94,818
S-HNI (Min)	14	3,556	Rs.2,09,804
B-HNI (Max)	67	17,018	Rs.10,04,062

Electronics Mart IPO details

IPO Opening Date	October 04, 2022
IPO Closing Date	October 07, 2022
Face Value	Rs.10 per Equity Share
IPO Price	Rs. 56-59 per share
Market Lot	254 shares
Minimum Order Quantity	254 shares
Listing At	NSE, BSE
No. of shares offered (OFS)	shares
Issue Size	Up to Rs. 500 Crore
QIB Shares Offered	50% of the offer
Retail Shares Offered	35% of the offer
NII/HNI Shares Offered	15% of the offer

Electronics Mart IPO Timetable

IPO Date	October 04-07, 2022
Allotment Date	October 12, 2022
Initiation of Refunds	October 13, 2022
Credit of share to Demat a/c	October 14, 2022
IPO Listing Date	October 17, 2022