Shares of Electronics Mart India Ltd. gained on listing after its initial public offering was subscribed 71.93 times, led by demand from institutional investors.
The stock of the Hyderabad-based company listed at Rs 89.40 apiece on the BSE Ltd., a premium of 51.53% to its IPO price of Rs 59 apiece. On the National Stock Exchange of India Ltd., the stock debuted at Rs 90, a 52.54% premium.
The stock gained 54.23% over its IPO price on the BSE in early trading, before closing at Rs 84.45. That is a premium of 43.14% over IPO price and a decline of 5.54% over its listing price.
Electronics Mart's Rs 500-crore IPO was fully subscribed on its first day and 7.57 times on the second day of subscription.
It included an issue of fresh shares representing 22.03% of the company's equity capital post the offering at a price band of Rs 56-59 per share.
Electronics Mart, which enjoys a dominant position in the southern region of India, said it will use Rs 111.44 crore from the net proceeds of the IPO as capital expenditure for expansion and opening of stores and warehouses.
The company will direct Rs 220 crore from the funds towards incremental working capital requirements and use Rs 55 crore from the net proceeds 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.
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