What GMP Suggests About its Market Debut

Electronics Mart Shares to List on Monday: The allotment of shares for the public issue worth Rs 500 crore has been finalised. Now all eyes are on listing. Shares will make a debut on October 17 and the final issue price has been fixed at the upper end of price band of Rs 56-59 per share.

Electronics Mart IPO Subscription Status

The maiden public issue of Electronics Mart India was subscribed 71.93 times during October 4-7, with qualified institutional buyers buying 169.54 times the allotted quota. Retail and non-institutional investors also remained aggressive, putting in bids 19.71 times and 63.59 times the portion set aside for them.

Electronics Mart IPO GMP today

According to market observers, shares of Electronics Mart are available at a premium of Rs 29 in grey market today. This means Electronics Mart IPO grey market premium (GMP) today is Rs 29.

An unofficial trade platform is the grey market. Trading commences with the publication of an IPO’s price range and continues up until the listing of the shares.

Generally, investors look at the grey market premium to know the expected listing price for any IPO. It is an unofficial platform where the IPO shares start trading with the announcement of price band and continue till the listing.

The current grey market premium is backed by the robust response by investors to the IPO with higher double-digit subscription, strong financials, sustainability of margin performance and attractive valuations.

What Do Brokerages Say?

“The electronics retailer has better revenue growth over two years, better return on equity and expansion plan on the cards. Considering all the positive factors, we believe this valuation is at reasonable levels,” said Angel One who had recommended a subscribe rating on the issue.

Electronics Mart India, one of the fastest growing consumer durable and electronics retailers in India, has a consistent track record of revenue growth and profitability, recording a 76 percent growth in financial year FY22 profit at Rs 104 crore and revenue grew by 36 percent to Rs 4,349 crore compared to previous year.

In fact, despite the ongoing Covid pandemic and company’s stores being non-operational & partially operational during different phases of the lockdown, its revenue from operations grew at a compounded annual growth rate (CAGR) of 17.09 percent during FY20-FY22.

Having a leadership position in South India, Electronics Mart India’s scale of operations along with its long-standing relationship with leading consumer brands enables it to procure products at competitive rates.

“Company being one of the fastest growing consumer durable and electronics retailer with consistent track record of growth and industry leading profitability has business model that provide operational flexibility to create long term sustainable footprint,” Hem Securities said.

Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.

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