The Initial Public Offering(IPO) for the week is-
Electronics Mart India Limited-
Electronics Mart India Limited is the 4th largest consumer durable and electronics retailer in India and is the largest player in the Southern region in revenue terms with dominance in the states of Telangana and Andhra Pradesh. The company commenced its business operations in 1980 and since then there has been a steady rise in its revenue from operations. It is one of the fastest growing consumer durable & electronics retailers in India with a revenue CAGR of 25.60% from Financial Year 2015 to Financial Year 2020.
Electronics Mart India offers a diversified range of products with a focus on large appliances (air conditioners, televisions, washing machines, and refrigerators), mobiles and small appliances, IT, and others. The offering includes more than 6,000 SKUs across product categories from more than 70 consumer durable and electronic brands. The business model of the company is a mix of ownership and lease rental models, as it focuses to secure retail spaces which ensure high visibility and easy accessibility to customers. Under the ownership model, it owns the underlying property including the land and building and in the lease rental model, it enters into a long-term lease arrangement with the property owner. As of August 15, 2021, out of the total 99 stores that the company operates, eight stores are owned, 85 stores are under a long-term lease rental model and six stores are partly owned and partly leased.
The promoters of the company are Mr. Pavan Kumar Bajaj and Mr. Karan Bajaj. The net proceeds of the issue would be utilized for funding the capital expenditure for expansion and opening of stores and warehouses, funding the incremental working capital requirements, repayment in full or part of borrowings availed by the company, and general corporate purposes.
The company had revenues of Rs 2826.09 crore with a profit of 77 crores (Year ended March 31, 2020), revenues of Rs. 3179.01 crores with a profit of Rs. 81.6 crores (Year ended March 31, 2021), and revenue of Rs.3207.36 crores with a net profit of Rs.58.6 crore (Year ended March 31, 2022).
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