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Electronics Mart India lists at 51% premium amid weak market opening

Electronics Mart India lists at 51% premium amid weak market opening
Stock Market2 min read
  • Shares of Electronics Mart India listed at ₹89.40 against the allotment price of ₹59 per share.
  • The IPO was subscribed 71.93 times amidst volatile market conditions.
  • The market capitalisation of the company stood at ₹3,439 crore.
Hyderabad-based Electronics Mart India, a consumer durables retail chain, listed at ₹89.40 on the bourses on Monday, amid weak market sentiment.

Investors made a profit of ₹30.4 per share. The market capitalisation of the company stands at ₹3,439 crore, according to BSE data.

Despite a negative market opening on Monday, the stock managed to keep up with the hefty premiums that the grey market has ascribed to them, thanks to optimistic analyst reviews.

The IPO received huge demand and was subscribed a whopping 71.93 times amidst volatile market conditions. Qualified institutional investors’ subscription was 169.54 times the IPO offer, while the retail portion of the IPO saw a subscription of 19.72 times.

Money raised through the IPO will be utilised for capital expenditure plans like opening new stores and warehouses. It will also be used towards working capital, debt payment and general corporate purposes.

The company’s net profit in FY22 grew 78% from the previous financial year while its EBITDA margin rose marginally to 6.7%. Covid restrictions hurt its EBITDA margin in FY21, which slipped to 6.4%, from 7.2% a year earlier.

Electronics Mart India offers a range of products including air conditioners, televisions, washing machines, refrigerators, mobiles, small appliances and IT products. The company offers product categories from more than 70 consumer durable and electronic brands. It operates across three channels – retail, wholesale and e-commerce.
Fiscal year

Revenue

Net Profit

EBITDA margin

FY22

₹4,353 crore

₹103 crore

6.71%

FY21

₹3,207 crore

₹58 crore

6.37%

FY20

₹3,179 crore

₹81 crore

7.18%


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