electronics mart india ipo subscription status: Electronics Mart IPO subscribed 71.93 times on final day

New Delhi: The initial public offering (IPO) of Electronics Mart India (EMIL) received 71.93 times subscription on the final day of offer on Friday. The IPO received bids for 449.53 crore shares against 6.25 crore shares on offer, according to a data available with the NSE.

The category for Qualified Institutional Buyers (QIBs) received 169.54 times subscription, Non-Institutional Investors (NIIS) 63.59 times and Retail Individual Investors (RIIs) 19.71 times.

The issue kicked off for subscription on Tuesday, October 4 and closes for subscription on 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.

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 Rs2,270 crore while its peer namely

is trading at a P/E of 32.7x, said Marwadi Financial Services.

“We assign ‘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.

With strong potential for revenue growth and scope for further improvement in profitability, we recommend a subscribed rating for a target price of Rs 201 for long-term gains, said Securities in its IPO note.
Securities, Securities, , Hem Securities, Choice Broking, and Nirmal Bang are among other brokerages which recommended subscribing to the issue.

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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