Electronics Mart India
Mainboard₹500 Cr issue
+51.53%
Listing gain over issue price
Issue size
₹500 Cr
1 lot at cut-off
₹14,986
Lot size
254shares
Open
04 Oct 2022
Close
07 Oct 2022
Allotment
12 Oct 2022
Listing
17 Oct 2022
Listing performance
Issue price
₹59
Listed at
₹89.40
Listing-day close
₹84.50
Latest price
₹153.60
Close on 23 Oct 2026
Listing gain
+51.53%
Return since issue
+160.34%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 04 Oct 2022 – 07 Oct 2022
- Listing date
- 17 Oct 2022
- Face value
- ₹10 per share
- Issue price
- ₹59 per share
- Lot size
- 254 shares
- Total issue size
- ₹500 Cr
- Market cap at offer price
- ₹2,270 Cr
- Promoter holding
- 100.00% → 77.97% pre-issue → post-issue
- ISIN
- INE02YR01019
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Anand Rathi Advisors Ltd.
- Registered office
- D.No: 6-1-91, Shop No.10, Ground Floor, Next to Telephone Bhavan, Secretaria, Saifabad, Telangana
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 2,54,23,728 | — | — |
Application size
Minimum 254 shares per lot, in multiples, at ₹59
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 254 | ₹14,986 |
| Retail (max) | 13 | 3,302 | ₹1,94,818 |
| S-HNI (min) | 14 | 3,556 | ₹2,09,804 |
| S-HNI (max) | 66 | 16,764 | ₹9,89,076 |
| B-HNI (min) | 67 | 17,018 | ₹10,04,062 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
2,54,23,728
Anchor portion
₹150 Cr
at ₹59 per share
Valuation and performance
Valuation at offer price
₹59 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 3.46 | — |
| P/E (×) | 17.05 | — |
| Market cap | — | ₹2,270 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 17.42%
- ROCE
- 18.87%
- Debt / equity
- 48.04
- PAT margin
- 2.40%
- EBITDA margin
- 6.71%
- NAV per share
- ₹19.88
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Electronics Mart India
Electronics Mart India Limited (EMIL) originated as a sole proprietorship 'M/s Bajaj Electronics' founded in Hyderabad in 1980, converted to a partnership in 2011, and subsequently incorporated as a public company in 2018. The company operates 112 retail stores across 36 cities/urban agglomerates as of August 31, 2022, offering more than 6,000 SKUs across consumer electronics and durables, mobile phones, and appliances. The company generates revenue through retail sales of branded consumer durables and electronics products sourced from multiple suppliers. As of Fiscal 2021, it is the largest regional organised player in the southern region in revenue terms with strong dominance in Telangana and Andhra Pradesh. The company achieved a revenue CAGR of 17.90% from Fiscal 2016 to 2021.
Company Analysis
from RHPElectronics Mart India Limited is the 4th largest consumer durables and electronics retailer in India, operating through brick-and-mortar retail stores concentrated in Telangana and Andhra Pradesh.
Electronics Mart India Limited (EMIL) originated as a sole proprietorship 'M/s Bajaj Electronics' founded in Hyderabad in 1980, converted to a partnership in 2011, and subsequently incorporated as a public company in 2018. The company operates 112 retail stores across 36 cities/urban agglomerates as of August 31, 2022, offering more than 6,000 SKUs across consumer electronics and durables, mobile phones, and appliances. The company generates revenue through retail sales of branded consumer durables and electronics products sourced from multiple suppliers. As of Fiscal 2021, it is the largest regional organised player in the southern region in revenue terms with strong dominance in Telangana and Andhra Pradesh. The company achieved a revenue CAGR of 17.90% from Fiscal 2016 to 2021.
consumer durables retailelectronics retailmobile phones retail
Objects of the Issue
- Funding of capital expenditure for expansion and opening of stores and warehouses ₹ 1,114.41 million p.21
- Funding incremental working capital requirements ₹ 2,200.00 million p.21
- Repayment / prepayment, in full or part, of all or certain borrowings availed by our Company ₹ 550.00 million p.21
- General Corporate Purposes p.21
- Funding of capital expenditure for expansion and opening of stores and warehouses ₹1,114.41 million p.86
- Funding incremental working capital requirements ₹2,200.00 million p.94
- Repayment / prepayment, in full or part, of all or certain borrowings availed by our Company ₹550.00 million p.96
- General Corporate Purposes p.97
Issue Structure
- Total Issue
- ₹ 5,000.00 million
- Fresh Issue
- Fresh Issue of up to [●] Equity Shares aggregating up to ₹ 5,000.00 million
- Price Band
- [●] per Equity Share (Floor Price) to [●] per Equity Share (Cap Price)
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹ 10 each
Business Model
The company operates a brick-and-mortar retail model, procuring consumer electronics and durables products from multiple branded suppliers and selling them through its network of retail stores. Revenue is generated from the sale of consumer electronics and durables products, mobile phones, and other appliances. The company also generates revenue from finance sales and online sales channels, though online sales remain marginal.
Business Segments
Sale of consumer electronics and durables products including large appliances, small appliances, and IT products
Sale of mobile phones and related products
Retail stores offering a comprehensive range of consumer durables and electronic products from multiple brands
Specialized retail stores offering products from exclusive brands
Category-specific stores such as Kitchen Stories for kitchen-specific products and Audio & Beyond for audio products
Multi-brand and exclusive brand outlets offering consumer durables and electronics products including large appliances, mobiles, small appliances, IT and other products across 112 stores in 36 cities as of August 31, 2022
Supply of consumer durable products to single shop retailers in Andhra Pradesh and Telangana regions
Online retail operations through owned website functioning as a catalogue for products and partnerships with major domestic and international e-commerce platforms
Retail sales of large home appliances including refrigerators, washing machines, air conditioners, dishwashers, ovens and related products
Retail sales of mobile phones and related products
Retail sales of small appliances such as microwave ovens, mixers, irons, water purifiers, air purifiers and IT products
Operation of multi-brand outlets (MBOs) and exclusive brand outlets (EBOs) offering diversified range of consumer durable and electronic products with comprehensive shopping experience
Supply of consumer durables and electronics products to single shop retailers in Andhra Pradesh and Telangana regions
Online retail operations through company website functioning as catalogue for retail store products and through major e-commerce platforms
Retail sale of mobile phones, televisions, large appliances, small appliances, IT products and accessories
Commission income and incentives income from various sources
SWOT Analysis
Strengths
- • Fourth largest and fastest growing consumer durables & electronics retailer in India(p.21)
- • Strong revenue growth trajectory with 17.90% CAGR(p.21)
- • Extensive store network across 36 cities with 6,000+ SKUs(p.21)
- • Regional market dominance in southern India(p.21)
- • 4th largest consumer durable and electronics retailer in India with South India leadership(p.156)
- • Strong revenue CAGR and consistent profitability with high operating margins(p.156)
- • Diversified product portfolio with 6,000+ SKUs across 70+ brands(p.156)
- • Long-standing relationships with brand partners and market presence spanning 40+ years(p.156)
- • Cluster-based expansion strategy enabling market dominance in Telangana and Andhra Pradesh(p.157)
- • Flexible business model combining owned and leased properties optimizing real estate strategy(p.156)
- • Multi-channel operations across retail, wholesale and e-commerce providing diversified revenue(p.157)
- • Specialized store formats (Kitchen Stories, Audio&Beyond) creating differentiated customer experience(p.157)
- • 4th largest consumer durable & electronics retailer with leadership in South India and strong scale advantages(p.161)
- • Strong brand partnerships with 70+ electronic brands and 15+ year relationships enabling diverse product portfolio(p.161)
- • Consistent revenue growth with 17.09% CAGR (FY2020-FY2022) and 35.84% YoY growth in FY2022 despite COVID-19(p.162)
- • Second highest operating margin among peers (FY2021) and strong EBITDA margins of 6.71%(p.163)
- • Strong cash generation capability enabling investments and supplier relationship benefits(p.163)
- • Efficient technology infrastructure with ERP and POS systems enabling real-time inventory management and customer response(p.165)
- • Strategically located warehouse network (9 large warehouses) and inventory management optimizing cost competitiveness(p.165)
- • Strong cluster-based expansion model with regional dominance in Telangana and Andhra Pradesh(p.163)
- • 4th largest consumer durables and electronics retailer in India with strong regional dominance(p.274)
- • Strong revenue growth track record with 17.90% CAGR from FY2016 to FY2021(p.274)
- • Second highest operating margin among peers in FY2021 demonstrating operational efficiency(p.274)
- • Longstanding market presence with over three decades of operational history(p.275)
- • Diversified product portfolio with 6,000+ SKUs across 70+ brands(p.275)
- • Strong brand partnerships with 15+ year relationships with certain major brands(p.276)
- • Integrated retail operations with efficient logistics and technology infrastructure(p.277)
- • Efficient inventory management complementing logistics network(p.277)
- • Strong brand partnerships and direct procurement from OEMs(p.277)
- • Scalable ERP systems and technology for operational efficiency(p.278)
- • Rapid store expansion during pandemic lockdowns(p.278)
Weaknesses
- • Heavy geographic concentration in Telangana and Andhra Pradesh(p.27)
- • Revenue concentration from top five brands (61%+ of revenue)(p.32)
- • Does not own key trademarks under which it operates(p.29)
- • 210 out of 278 lease deeds are unregistered with irregularities(p.41)
- • High dependency on external suppliers with 76-87% of purchases from top 10 suppliers(p.34)
- • Some lease agreements have expired and not been renewed(p.37)
- • Outstanding GST liabilities and tax disputes of ₹123.71 million(p.23)
- • Ongoing trademark infringement litigation with Bajaj Electricals Limited(p.29)
- • High dependence on unsecured short-term borrowings from banks(p.46)
- • Lack of independent appraisal for capital expenditure and working capital funding requirements(p.46)
- • Vulnerability to seasonal and cyclical retail demand fluctuations(p.45)
- • High attrition rate in retail industry and dependency on skilled personnel(p.47)
- • Promoters have provided personal guarantees on company debt(p.50)
- • Significant restrictive covenants in bank financing arrangements(p.47)
- • Inadequate insurance coverage for certain assets(p.49)
- • Company has not paid dividends historically and may not in future(p.49)
- • Geographic concentration of operations primarily in Telangana and Andhra Pradesh creates regional dependency(p.157)
- • Small scale relative to national players with only 112 stores versus competitors operating 300+ stores(p.156)
- • Limited e-commerce penetration with minimal online revenue contribution at under 1% of total sales(p.158)
- • Early stage presence in NCR region with only two cities and eight stores as of August 2022(p.157)
- • High geographic concentration with 104 out of 112 stores (92.9%) in Andhra Pradesh and Telangana(p.163)
- • Significant dependence on two promoters (Pavan Kumar Bajaj 50.69% and Karan Bajaj 49.29%) with combined 99.98% ownership(p.211)
- • Reliance on personal guarantees from promoters for substantial borrowings creating personal liability risk(p.213)
- • High reliance on consumer financing through EMI options creating dependency on finance partner arrangements(p.162)
- • Vulnerability to product shrinkage through shoplifting and employee pilferage impacting margins(p.174)
- • High dependence on lease arrangements for majority of store base(p.275)
- • Significant financial leverage with borrowings and lease liabilities(p.273)
- • Property title deed issues for certain immovable properties still unresolved(p.241)
- • Past defaults in loan repayments by multiple lenders(p.268)
- • Geographic concentration with primary operations limited to three regions only(p.275)
- • High dependence on top five brands for revenue(p.304)
- • Significant portion of property assets held in names of former partners/promoters(p.305)
- • Material GST compliance disputes and show cause notices(p.315)
- • Lack of clarity on trademark ownership for key brands(p.322)
- • Multiple incomplete license and approval applications(p.321)
Opportunities
- • Expected acceleration of Indian retail CAGR to 11-12% between Fiscal 2022-2027(p.21)
- • Large consumer durables market dominated by B&M retail (81% as of Fiscal 2022)(p.28)
- • Growth in consumer durables industry estimated at Rs 3-3.2 trillion with 12% historical CAGR(p.21)
- • Planned expansion into new geographies including NCR(p.27)
- • Use of ₹1,114.41 million from IPO proceeds for store and warehouse expansion(p.34)
- • Expansion into new retail markets and increasing store footprint(p.86)
- • Growing electronic retail market in India(p.87)
- • Expansion of warehouse network and logistics capabilities(p.94)
- • Diversification into new store formats and specialized retail offerings(p.86)
- • Expansion into underserved Tier II and III cities with lower organized retail penetration(p.123)
- • Rising consumer durables demand driven by urbanization and increasing disposable incomes(p.123)
- • Expected acceleration of organized B&M retail growth to 13-15% CAGR through fiscal 2027(p.126)
- • Strong growth trajectory in large appliances segment with 8-10% CAGR projected to fiscal 2027(p.137)
- • Expansion opportunities in NCR region with developing market and low current penetration(p.157)
- • Growth in financing penetration with rising consumer EMI adoption for appliances(p.135)
- • Favorable demographics with young population and nuclearization driving discretionary spending(p.123)
- • Expansion into NCR region with plan to open 26 MBOs using IPO proceeds(p.166)
- • Deepening penetration in existing Hyderabad, Telangana and Andhra Pradesh markets through cluster-based expansion(p.166)
- • Expansion of financing options through partnerships to widen customer base across income categories(p.167)
- • Growth in specialized store formats (Kitchen Stories, Audio&Beyond) targeting premium market segments(p.168)
- • Omni-channel business model development through digital strategy and e-commerce platform integration(p.168)
- • Expansion of EBO network and brand partnerships to increase product range and market presence(p.168)
- • Modernization of store infrastructure and customer experience improvements to drive sales volumes(p.167)
- • Planned expansion of store network with cluster-focused strategy(p.275)
- • E-commerce channel expansion through multiple digital platforms(p.276)
- • Growth in mobile category as fastest growing product segment(p.276)
- • Expansion of specialized store formats targeting specific market segments(p.275)
- • Financing solutions to expand market reach and affordability(p.277)
- • Targeted marketing during high-demand seasons and events(p.277)
- • Growth through innovative marketing and brand building(p.277)
- • Expanding into new geographies and clusters(p.278)
Threats
- • Intense competition from online retailers with aggressive pricing and wider product range(p.28)
- • E-retail industry growing at 3x rate since Fiscal 2017, representing 30-35% of organised retail(p.28)
- • COVID-19 pandemic causing store closures and operational disruptions(p.30)
- • Dependence on discretionary consumer spending vulnerable to economic slowdowns(p.31)
- • Regulatory and FDI policy changes affecting competitive dynamics(p.28)
- • Supply chain disruptions and logistics costs affecting margins(p.45)
- • Potential for increased working capital requirements due to inventory intensity(p.38)
- • Exposure to adverse economic conditions in concentrated geographic markets(p.32)
- • Foreign Direct Investment liberalization in Indian retail sector may intensify competition(p.54)
- • Vulnerability to regulatory changes and compliance costs(p.48)
- • Exposure to Indian economic and political instability(p.56)
- • Volatility in global financial markets affecting Indian economy(p.54)
- • Risk of downgrades in India's sovereign credit rating(p.58)
- • Exposure to natural disasters and man-made crises(p.59)
- • Tax law changes impacting business profitability(p.57)
- • Systemic risk from Indian financial institutions(p.55)
- • Intense competition from national players and e-commerce platforms with superior scale and resources(p.124)
- • Rising lease rental costs as major fixed cost component impacting profitability(p.124)
- • Inventory management challenges affecting working capital and cash flow(p.124)
- • Macroeconomic sensitivity with consumer durables demand vulnerable to inflation and interest rates(p.124)
- • Regulatory challenges including multiple laws, zoning restrictions and labor regulations(p.124)
- • Seasonal business nature creating volatility in demand across fiscal year(p.158)
- • FDI restrictions limiting growth opportunities in e-commerce marketplace model(p.154)
- • Intense competition from organized retailers (Reliance Retail, Croma, Vijay Sales) and unorganized local stores(p.177)
- • Increasing bargaining power of customers leading to aggressive discounting practices affecting gross margins(p.177)
- • Operational vulnerability to COVID-19 lockdowns and store closures impacting business and revenue(p.160)
- • Regulatory risks from changing laws, rules and legal uncertainties in India affecting business(p.179)
- • Potential hazards in warehousing and transportation including fire, earthquakes, floods and terrorism(p.177)
- • Risks from new data protection regulations (PDP Bill) impacting data handling and customer information management(p.181)
- • GST dispute with National Anti-Profiteering Authority pending adjudication(p.262)
- • Exposure to interest rate fluctuations on variable rate borrowings(p.259)
- • Concentration risk in wholesale and e-commerce channels with limited scale(p.276)
- • COVID-19 pandemic impact on retail operations and expansion(p.275)
- • Pandemic-related store closures and reduced customer footfall(p.279)
- • Government-imposed lockdown restrictions affecting business continuity(p.279)
- • Disruption in supplier supply chains impacting inventory levels(p.279)
- • Third-party logistics inefficiency affecting cash collection cycles(p.279)
- • Manpower productivity losses due to employee health issues(p.279)
- • Trademark infringement litigation from Bajaj Electricals Limited(p.316)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Pavan Kumar Bajaj | Promoter | 50.69% | — |
| Karan Bajaj | Promoter | 49.29% | — |
| Pavan Kumar Bajaj | Promoter | 50.69% | — |
| Karan Bajaj | Promoter | 49.29% | — |
| Renu Bajaj | Promoter Group | 0.004% | — |
| Pavan Kumar Bajaj | Managing Director | — | — |
| Pavan Kumar Bajaj | Promoter | 50.69% | — |
| Karan Bajaj | Promoter | 49.29% | — |
| Pavan Kumar Bajaj | Promoter | 50.69% | — |
| Karan Bajaj | Promoter | 49.29% | — |
| Pavan Kumar Bajaj | Promoter | — | — |
| Karan Bajaj | Promoter | — | — |
Leadership
Rajiv Kumar · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Electronics Mart India IPO FAQs
What is the lot size of Electronics Mart India IPO?
The minimum lot size of Electronics Mart India IPO is 254 shares. One lot costs ₹14,986 at the cut-off price.
When does Electronics Mart India IPO open and close?
Electronics Mart India IPO opened for subscription on 04 Oct 2022 and closed on 07 Oct 2022.
What is the listing date of Electronics Mart India IPO?
Electronics Mart India IPO listed on 17 Oct 2022.