Electronics Mart India IPO Subscribed 1.69 Times On Day 1

Television sets inside an electronic store. (Photo: Usha Kunji /Source: BQ Prime)

The initial public offering of Electronics Mart India Ltd. was fully subscribed on its first day.

The demand for the Rs 500-crore IPO was led by qualified institutional buyers and retail investors.

The IPO, which opened for subscription on Tuesday, includes issue of fresh shares representing 22.03% of the company's equity capital post the offering, according to its red herring prospectus.

The price band has been fixed at Rs 56-59 apiece.

The Hyderabad-based electronics retail company will utilise Rs 111.44 crore from the net proceeds of the IPO to fund its capital expenditure for expansion and opening of stores and warehouses. It will also direct Rs 220 crore from the funds toward incremental working capital requirements, while it will set aside Rs 55 crore for repayment or prepayment of debt.

The company will also use some portion of the net proceeds, not exceeding 25% of the gross proceeds, for general corporate purposes, it said.

Electronics Mart, dominant in the southern region of India, is the fourth largest and one of India's fastest-growing consumer durables and electronics retailers in India.

The company offers a wide range of products, from large appliances such as air conditioners, televisions, refrigerators, and washing machines to mobile phones, small appliances, IT, and other items. Electronics Mart sells its products through three channels—retail, wholesale, and e-commerce.

E-commerce accounts for about 1% of the company's sales.