Electronics Mart India Limited IPO Details

 

Electronics Mart India IPO

 

Offer period

Oct 4, 2022 to Oct 7, 2022

Price Band

₹56 to ₹59 per share

Lot Size

254 Shares

Issue Size

₹500Cr

Allotment Date

Oct 13, 2022

Listing Date

Oct 17, 2022

 

Electronics Mart India Limited, founded in 1980, is India's fourth largest consumer durable and electronics retailer. The company sells a wide variety of products, focusing on large appliances (air conditioners, televisions, washing machines, and refrigerators), mobile phones and small appliances, IT, and other items. More than 6,000 SKUs (stock keeping units) from more than 70 consumer durable and electronic brands are included in the company's offering.

Electronics Mart India Limited's business models are as follows:

  1. Ownership Model: The underlying property, including the land and building, is owned by the company.

  2. Lease Rental Model: The company has negotiated a long-term lease with the property owner (s). As of August 15, 2021, eight of the company's 99 stores are owned, 85 are under the long-term lease rental model, and six are partly owned and partly leased.

 

Electronics Mart India Limited - Business Overview

The company conducts its operations through three channels: retail, wholesale, and e-commerce.

Retail: As of August 15, 2021, out of 99 stores, 88 are Multi Brand Outlets ("MBOs") and 11 are Exclusive Brand Outlets ("EBOs"). For the fiscal years 2021, 2020, and 2019, the retail channel generated Rs 29,312.84 million, Rs 28,991.35 million, and Rs 25,801.72 million, respectively.

Wholesale: The company also engages in the wholesale of consumer durables, supplying products to single-shop retailers in Andhra Pradesh and Telangana. For Fiscal Years 2021, 2020, and 2019, the wholesale channel generated Rs. 530.53 million, Rs. 505.22 million, and Rs. 465.81 million, respectively.

E-Commerce: Currently, the e-commerce website serves as a catalogue for the products that the company sells in stores. For the fiscal years 2021, 2020, and 2019, the revenue from the e-commerce channel was Rs. 444.57 million, Rs. 280.11 million, and Rs. 212.75 million, respectively.

 

Electronics Mart India - Objectives of the IPO

  1. The net proceeds of Rs.133.87 crores will be used to fund the company's capital expenditures, such as the expansion and opening new stores and warehouses.

  2. Rs.200 crore will be used to fund additional working capital requirements.

  3. Rs.50 crore is to be used to prepay or repay the company's debts.

 

Electronics Mart India - Financial Summary

Period Ended

Total Assets

Total Revenue

Profit After Tax

Net Worth

Total Borrowing

31-Mar-19

1109.15

2826.1

77.1

340.5

377.06

31-Mar-20

1347.6

3179.02

81.61

433.08

520.54

31-Mar-21

1523.53

3207.37

58.62

491.92

547.95

31-Mar-22

1824.74

4353.07

103.89

596.51

593.64

30-Jun-22

1755.58

1410.25

40.66

637.97

475.91

 

Electronics Mart India IPO - Pros
  1. Electronics Mart India is the fourth largest consumer durable and electronics retailer in India, with a revenue leadership position in Southern India. They are mostly concentrated in Andhra Pradesh and Telangana.

  2. They have a proven track record of consistent growth, having grown from 53 stores in FY19 to 99 stores as of August 15, 2021.

  3. They use a cluster-based approach to store expansion, which allows them to expand their geographical reach and market presence.

  4. The company's products are diverse and meet many of the customer's wants and needs in one location.

  5. The company operates seven large warehouses that are very strategically managed.

 

Electronics Mart India IPO - Cons
  1. Because the company relies on outside sources for its products, any delay or disruption in supply will have a negative impact on business operations and financials.

  2. A significant portion of revenue is dependent on a limited number of brands. If the volume supplied by these brands decreases, Electronics Mart India's profitability and revenue will suffer.

  3. The industry is open to new entrants and thus extremely competitive.

  4. Expansion into new geographies may result in the company incurring losses on some of its investments.

 
How to Apply for Electronics Mart India IPO
  1. Go to https://ipo.adityatrading.in/

  2. Enter your client ID

  3. Enter the OTP received in your registered mobile number.

  4. Choose the IPO and click on apply button.

  5. Enter the UPI ID, Quantity, and Cut off price.

  6. Click on submit button

  7. Confirm the mandate the mandate request received on your phone by entering the UPI Pin.

  8. You can also watch our youtube video on “How to Apply on IPO”

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