Electronics Mart India IPO Subscribed 7.57 Times On Day 2
Follow the latest subscription updates from day 2 of Electronics Mart India IPO.
The demand for shares of Electronics Mart India Ltd. picked up on the second day of subscription of its initial public offering.
The Rs 500-crore IPO was fully subscribed on its first day.
The initial share sale includes the issue of fresh shares representing 22.03% of the company’s equity capital post the offering, according to the red herring prospectus. The price band has been fixed at Rs 56-59 apiece.
The Hyderabad-based electronics retail company plans to use Rs 111.44 crore from the net proceeds for its capital expenditure for expansion and opening of stores and warehouses.
As much as Rs 220 crore from the funds will be directed towards incremental working capital requirements, while Electronics Mart will set aside Rs 55 crore for repayment or prepayment of debt.
The company said it will also use some portion of the net proceeds, not exceeding 25% of the gross proceeds, for general corporate purposes.
A dominant player in the southern region of India, Electronics Mart is the fourth largest and one of India’s fastest-growing consumer durables and electronics retailers.
The company offers products ranging from large appliances such as air conditioners, televisions, refrigerators, and washing machines to mobile phones, small appliances, IT, and other items.
The company markets its products through three channels—retail, wholesale, and e-commerce, with e-commerce accounting for about 1% of its sales.
Subscription Status: Day 2
The IPO subscribed 7.57 times as of 5:00 p.m. on Oct. 6.
Institutional investors: 4.01 times.
Non-institutional investors: 11.74 times.
Retail investors: 7.81 times.