The IPO, which kicked off for subscription on Tuesday, October 4, can be subscribed till Friday, October 7. The company is selling its shares in the range of Rs 56-59 apiece to raise Rs 500 crore via its initial stake sale.
According to the data from BSE, investors made bids for 19,61,86,298 equity shares or 3.14 times compared to 6,25,00,000 equity shares offered for subscription by 11.45 am on Tuesday, October 6.
The quota for retail bidders was subscribed 4.12 times, whereas the allocation for HNI investors fetched 2.78 times bids. The quota for qualified institutional investors was subscribed 1.68 times.
Brokerages remain positive on the issue on the back of valuations, growth prospects and dominance in the market. However, a few have raised concerns over dependence on major brands and online competition.
Considering the FY22 and FY23 annualized EPS of Rs 2.70 and Rs 4.23, respectively on a post-issue basis, the company is going to list at a P/E of 21.85x and 13.96x with a market cap of Rs2,270 crore while its peer namely
is trading at a P/E of 32.7x, said Marwadi Financial Services.
“We assign a ‘subscribe’ rating to this IPO as the company is the fourth-largest consumer durable and electronics retailer in India with a leadership position in South India. Also, it is available at discounted valuation as compared to its peer,” it said.
With strong potential for revenue growth and scope for further improvement in profitability, we recommend a subscribed rating for a target price of Rs 201 for long-term gains, said
Securities in its IPO note.
Securities, Securities, , Hem Securities, Choice Broking, and Nirmal Bang are among other brokerage firms which recommended subscribe ratings to the issue.
On Monday, Electronics Mart India allotted 2,54,23,728 equity shares to 20 anchor investors for Rs 59 apiece, aggregating to about Rs 150 crore, the company said in a BSE circular filed.
Anand Rathi Securities,
and Consultants are the book-running lead managers, whereas KFin Technologies has been appointed as the registrar to the issue. Shares of the company will list on both BSE and NSE.
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