The issue, which kicked off for subscription on Tuesday, October 4, can be subscribed till Friday, October 7. The company is selling its shares in the range of Rs 56-59 apiece to raise Rs 500 crore via its initial stake sale.
According to the data from BSE, investors made bids for 10,58,14,114 equity shares or 1.69 times compared to 6,25,00,000 equity shares on Tuesday, October 4. The quota reserved for retail individual investors (RIIs) was subscribed 1.98 times, qualified institutional buyers by 1.68 times and NII by 1.04 times.
Brokerages remain positive on the issue amid reasonable valuations, growth prospects and dominance in the markets. However, a few have raised concerns over dependence on major brands and online competition.
Considering FY22 and FY23 annualized EPS of Rs 2.70 and Rs 4.23, respectively on a post-issue basis, the company is going to list at a P/E of 21.85x and 13.96x with a market cap of Rs 2,270 crore while its peer namely
is trading at a P/E of 32.7x, said Marwadi Financial Services.
“We assign a ‘subscribe’ rating to this IPO as the company is the fourth-largest consumer durable and electronics retailer in India with a leadership position in South India. Also, it is available at discounted valuation as compared to its peer,” it said.
Among peers, EMIL has one of the highest sales per store and operating margins which makes it an attractive bet, said Dalal & Broacha with a subscribe rating on the issue.
“With the store opening guidance, we believe the company will grow at least in line with the industry up to 19 per cent,” it added. “We believe the IPO is attractively priced with decent growth expectations.”
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 in a BSE circular filed.
Anand Rathi Securities,
and Consultants are the book-running lead managers, whereas KFin Technologies has been appointed as the registrar to the issue. Shares of the company will list on both BSE and NSE.
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