Electronics Mart India Limited’s
Initial Public Offering to open on 4th
October, 2022, sets price band at ₹56 to ₹59 per Equity Share
·
Price Band of ₹ 56 – ₹ 59per equity share
bearing face value of ₹ 10 each (“Equity Shares”).
·
Bid/IssueOpening Date – Tuesday, 04th
October, 2022 and Bid/Issue Closing Date – Friday, 07th October,
2022.
·
Minimum Bid Lot is 254 Equity Shares and in
multiples of 254 Equity Shares thereafter.
·
The Floor Price is 5.6 times the face value of
the Equity Share, and the Cap Price is 5.9 times the face value of the Equity
Share.
Risks to
Investors:
• The Issue Price, market
capitalization to revenue from operations multiple andprice to earnings ratio
based on the Issue Price of our Company may not be indicative of the market
price of the Company on listingor thereafter.
|
Particulars
|
Fiscal 2022
|
|
Revenue from operations
|
₹4,349.32 crore
|
|
Profit after tax
|
₹103.89 crore
|
|
Market capitalization to
revenue from operations at the upper end of the Price Band (number of times)
|
0.52
|
|
Price to Earnings Ratio
(based on diluted EPS as of March 31,2022) at the upper end of the Price Band
(number of times)
|
17.05
|
• The weighted average
cost of acquisition of all Equity Shares transacted in the three years and one
year preceding the date of theRed Herring Prospectus is as follows:
|
Period
|
Weighted Average
Cost of Acquisition (in ₹)*
|
Cap Price (₹59) is ‘X' times the Weighted Average
Cost of Acquisition*
|
Range of
acquisition price: lowest price -highest price (in ₹)*
|
|
Last three years preceding the date of the Red Herring
Prospectus
|
Nil
|
Nil
|
Nil
|
|
Last one year preceding
the date of the Red Herring Prospectus
|
Nil
|
Nil
|
Nil
|
*As certified by Komandoor& Co LLP
Chartered Accountants, by way of their certificate dated September 27, 2022.
• Average cost of acquisition of Equity Shares
held by the Promoters is₹10 per
Equity Share and Issue Price at
the upper end of the Price Band is ₹59 per Equity Share.
• The three BRLMs associated with the Issue have
handled 53 public issues in the past three years, out of which 16 issues
closedbelow the offer price on the listing date.
Mumbai, September 28 2022:Hyderabad-based
consumer durable retail chain, Electronics Mart India Limited (“the Company/
EMIL”) has fixed the price band at ₹ 56 to ₹ 59 per Equity Share for its maiden
public issue. The initial public offering (“IPO” or “Issue”) of the
Company will open on Tuesday, 04th October, 2022, for subscription and
close on Friday, 07th October, 2022. Investors can bid for a
minimum of 254 Equity Shares and in multiples of 254 Equity Shares thereafter.
The Issue consists of a fresh issue of Equity Shares aggregating to Rs
500 crore, with no offer for sale component.
EMILis the fourth largest and one of the fastest growing
consumer durables and electronics retailers in India with 1.12 million square
feet of the retail business area. As on August 31, 2022 it had 112 stores across
36 cities / urban agglomerates, out of which, 100 stores are Multi Brand Outlets
(“MBOs”) and 12 stores are Exclusive Brand Outlets (“EBOs”). The Company operates
89 MBOs under the name “Bajaj Electronics” in Andhra and Telangana, eight MBO
under the name of “Electronics Mart” in the NCR region, two specialized stores
under the name “Kitchen Stories” which cater to the kitchen-specific demands of
their customers and one specialized store format under the name
“Audio&Beyond” focusing on high-end home audio and home automation solutions.
Currently, EMILhas a leadership position in South India. It
aims to continue to deepen their store network in their existing clusters to
increase the market share in Telangana and Andhra Pradesh. It also intends to
open and build the store network in the NCR by opening 26 MBOS with the
proceeds of the IPO.
EMIL displays more than 6000 stock keeping units(SKUs)across
product categories from more than 70 consumer durable and electronic brands. It
operates across three channels of retail, wholesale and e-commerce.
In
FY 22 its revenue from operations increased significantly by 35.84% to Rs
4,349.32 crore from Rs 3,201.88 crore for the same period last year, primarily
due to an increase in retail sales during the Financial Year 2022 by
35.03%. However, profit
after tax increased by 77.22% from Rs 58.62 crore in Fiscal 2021 as compared to
Rs 1,03.89 crore in Fiscal 2022. Revenue from operations has increased
at a CAGR of 17.09 % from Fiscal 2020 to Fiscal 2022, and as on FY21, its operating
margins stood the second highest amongst its peers. For the three months ended
June 30, 2022, its revenue from operations stood at Rs 1408.45 crore, and
profit after tax stood at Rs 40.66 crore.
In case of any revision to the
Price Band, the Bid/Issue Period will be extended by at least three additional
Working Days after such revision in the Price Band, subject to the Bid/Issue
Period not exceeding 10 Working Days. In cases of force majeure, strike or
similar circumstances, our Company in consultation with the BRLMs, for reasons
to be recorded in writing, extend the Bid / Issue Period for a minimum of three
Working Days, subject to the Bid/ Issue Period not exceeding 10 Working Days.
Any revision in the Price Band and the revised Bid/Issue period, if applicable,
will be widely disseminated by notification to the Stock Exchanges, by issuing
a press release, and also by indicating the change on theterminals of the
Syndicate Members and by intimation to the Designated Intermediaries.
This is an Issue in terms of Rule
19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (“SCRR”), read with Regulation 31 of
Securities and Exchange Board of India (Issue of Capital and Disclosure
Requirements) Regulations, 2018, as amended (the “SEBI ICDR Regulations”). The Issue is being made through the Book
Building Process in terms of Regulation 6(1) of the SEBI ICDR Regulations,
wherein not more than 50% of the Issue shall be available for allocation on a
proportionate basis to Qualified Institutional Buyers (“QIBs”) (the “QIB Portion”),
provided that our Company, in consultation with the BRLMs, may allocate up to
60% of the QIB Portion to Anchor Investors on a discretionary basis, out of
which one- third shall be reserved for domestic Mutual Funds only, subject to
valid Bids being received from domestic Mutual Funds at or above the Anchor
Investor Allocation Price, in accordance with the SEBI ICDR Regulations. In the
event of under-subscription, or non-allocation in the Anchor Investor Portion,
the balance Equity Shares shall be added to the Net QIB Portion. Further, 5% of
the Net QIB Portion shall be available for allocation on a proportionate basis
to Mutual Funds only, and the remainder of the Net QIB Portion shall be
available for allocation on a proportionate basis to all QIB Bidders (other
than Anchor Investors), including Mutual Funds, subject to valid Bids being
received at or above the Issue Price. However, if the aggregate demand from
Mutual Funds is less than 5% of the QIB Portion, the balance Equity Shares
available for allocation in the Mutual Fund Portion will be added to the Net
QIB Portion for proportionate allocation to QIBs. Further, not less than 15% of
the Issue shall be available for allocation on a proportionate basis to Non-Institutional
Bidders (“Non- Institutional Portion”)
of which one-third of the Non-Institutional Portion shall be available for
allocation to Non-Institutional Bidders with an application size between ₹ 200,000 to₹
1,000,000 and two-thirds of the Non-Institutional Portion shall be
available for allocation to Bidders with an application size of more than ₹ 1,000,000 and under-subscription
in either of these two sub-categories of Non-Institutional Portion may be
allocated to Non-Institutional Bidders in the other sub-category of
Non-Institutional Portion, and not less than 35% of the Issue shall be
available for allocation to Retail Individual Bidders in accordance with the
SEBI ICDR Regulations, subject to valid Bids being received from them at or
above the Issue Price. All Bidders (except Anchor Investors) are required to
mandatorily utilize the Application Supported by Blocked Amount (“ASBA”) process providing details of
their respective bank account (including UPI ID for UPI Bidders using UPI
Mechanism), in which the corresponding Bid Amounts will be blocked by the SCSBs
or the Sponsor Banks, as applicable. Anchor Investors are not permitted to
participate in the Issue through the ASBA process. For details, see “Issue Procedure” on page 344 of the RHP.
Anand Rathi Advisors Limited, IIFL Securities Limited and JM Financial Limited
are the book running lead managers to the issue and Kfin Technologies Limited is the
registrar to the offer.All capitalized terms used herein and not
specifically defined shall have the same meaning as ascribed to them in the
RHP.
