Electronics Mart India IPO Subscribed 71.93 Times On Final Day

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

The initial public offering of Electronics Mart India Ltd. continued to garner investor demand on the third day of subscription.

The Rs 500-crore IPO was fully subscribed on its first day and 7.57 times on the second day. The issue was subscribed 71.93 times on the final day.

The Hyderabad-based company's initial stake sale includes the issue of fresh shares that represents 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.

Electronics Mart said it will dedicate Rs 111.44 crore from the net proceeds from the IPO for its capital expenditure for expansion and opening of stores and warehouses.

Meanwhile, it will direct Rs 220 crore from the funds towards incremental working capital requirements, while the company will utilise Rs 55 crore from the net proceed to repay or prepay its debt.

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

Electronics Mart, which has a significant presence in the southern region of India, is the fourth largest and one of the nation's fastest-growing consumer durables and electronics retailers.

It sells electronics products such as air conditioners, televisions, refrigerators, and washing machines along with 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.