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:
Ownership Model: The underlying property, including the land and building, is owned by the company.
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.
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.
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.
Rs.200 crore will be used to fund additional working capital requirements.
Rs.50 crore is to be used to prepay or repay the company's debts.
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 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.
They have a proven track record of consistent growth, having grown from 53 stores in FY19 to 99 stores as of August 15, 2021.
They use a cluster-based approach to store expansion, which allows them to expand their geographical reach and market presence.
The company's products are diverse and meet many of the customer's wants and needs in one location.
The company operates seven large warehouses that are very strategically managed.
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.
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.
The industry is open to new entrants and thus extremely competitive.
Expansion into new geographies may result in the company incurring losses on some of its investments.
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This report is only for the information of our customers. Recommendations, opinions, or suggestions are given with the understanding that readers acting on this information assume all risks involved. The information provided herein is not to be construed as an offer to buy or sell securities of any kind. ATS and/or its group companies do not as assume any responsibility or liability resulting from the use of such information.