Electronics Mart India Limited’s Initial Public Offering to open..

Electronics Mart India Limited’s Initial Public Offering to open on 4^th October, 2022, sets price band at ₹56 to ₹59 per Equity Share

·         Price Band of ₹ 56 – ₹ 59 per equity share bearing face value of ₹ 10 each (“Equity Shares”).

·         Bid/Issue Opening Date – Tuesday, 04^th October, 2022 and Bid/Issue Closing Date – Friday, 07^th October, 2022.

·         Minimum Bid Lot is 254 Equity Shares and in multiples of 254 Equity Shares thereafter.

·         The Floor Price is 5.6 times the face value of the Equity Share, and the Cap Price is 5.9 times the face value of the Equity Share.

Risks to Investors:

• The Issue Price, market capitalization to revenue from operations multiple and price to earnings ratio based on the Issue Price of our Company may not be indicative of the market price of the Company on listing or thereafter.

Particulars	Fiscal 2022
Revenue from operations	₹43,493.16 million
Profit after tax	₹1,038.91 million
Market capitalization to revenue from operations at the upper end of the Price Band (number of times)	0.52
Price to Earnings Ratio (based on diluted EPS as of March 31,2022) at the upper end of the Price Band (number of times)	17.05

• The weighted average cost of acquisition of all Equity Shares transacted in the three years and one year preceding the date of the Red Herring Prospectus is as follows:

Period	Weighted Average Cost of Acquisition (in ₹)*	Cap Price (₹ 59)  is ‘X' times the Weighted Average Cost of Acquisition*	Range of acquisition price: lowest price -highest price (in  ₹)*
Last three years  preceding the date of the Red Herring Prospectus	Nil	Nil	Nil
Last one year preceding the date of the Red Herring Prospectus	Nil	Nil	Nil

*As certified by Komandoor & Co LLP Chartered Accountants, by way of their certificate dated September 27, 2022.

• Average cost of acquisition of Equity Shares held by the Promoters is ₹ 10 per Equity Share and Issue Price at

the upper end of the Price Band is ₹ 59 per Equity Share.

• The three BRLMs associated with the Issue have handled 53 public issues in the past three years, out of which 16 issues closed below the offer price on the listing date.

 Mumbai, September 28 2022: Hyderabad-based consumer durable retail chain, Electronics Mart India Limited (“the Company/ EMIL”) has fixed the price band at ₹ 56 to ₹ 59 per Equity Share for its maiden public issue. The initial public offering (“IPO” or “Issue”) of the Company will open on Tuesday, 04^th October, 2022, for subscription and close on Friday, 07^th October, 2022. Investors can bid for a minimum of 254 Equity Shares and in multiples of 254 Equity Shares thereafter.

The Issue consists of a fresh issue of Equity Shares aggregating to Rs 5,000 million, with no offer for sale component.

(Panel Caption (L-R) : Mr. V Prashant Rao, Director- Investment Banking, Anand Rathi Advisors Limited, Kriti Goyal Vice President, Capital Markets Group - JM Financial Limited, Karan Bajaj, Chief Executive Officer and Premchand Devarakonda, Chief Financial Officer - Electronics Mart India Limited, Shirish Chikalge, Sr. Vice President - IIFL Securities Limited.)

EMIL is the fourth largest and one of the fastest growing consumer durables and electronics retailers in India with 1.12 million square feet of the retail business area. As on August 31, 2022 it had 112 stores across 36 cities / urban agglomerates, out of which, 100 stores are Multi Brand Outlets (“MBOs”) and 12 stores are Exclusive Brand Outlets (“EBOs”). The Company operates 89 MBOs under the name “Bajaj Electronics” in Andhra and Telangana, eight MBO under the name of “Electronics Mart” in the NCR region, two specialized stores under the name “Kitchen Stories” which cater to the kitchen-specific demands of their customers and one specialized store format under the name “Audio & Beyond” focusing on high-end home audio and home automation solutions.

Currently, EMIL has a leadership position in South India.  It aims to continue to deepen their store network in their existing clusters to increase the market share in Telangana and Andhra Pradesh. It also intends to open and build the store network in the NCR by opening 26 MBOS with the proceeds of the IPO.

EMIL displays more than 6000 stock keeping units (SKUs) across product categories from more than 70 consumer durable and electronic brands. It operates across three channels of retail, wholesale and e-commerce.

In FY 22 its revenue from operations increased significantly by 35.84% to Rs 4,349.32 million from Rs 3,201.88 million for the same period last year, primarily due to an increase in retail sales during the Financial Year 2022 by 35.03%. However, profit after tax increased by 77.22% from Rs 586.21 million in Fiscal 2021 as compared to Rs 1,038.91 million in Fiscal 2022. Revenue from operations has increased at a CAGR of 17.09 % from Fiscal 2020 to Fiscal 2022, and as on FY21, its operating margins stood the second highest amongst its peers. For the three months ended June 30, 2022, its revenue from operations stood at Rs 14,084.5 million, and profit after tax stood at Rs 406.6 million.

In case of any revision to the Price Band, the Bid/Issue Period will be extended by at least three additional Working Days after such revision in the Price Band, subject to the Bid/Issue Period not exceeding 10 Working Days. In cases of force majeure, strike or similar circumstances, our Company in consultation with the BRLMs, for reasons to be recorded in writing, extend the Bid / Issue Period for a minimum of three Working Days, subject to the Bid/ Issue Period not exceeding 10 Working Days. Any revision in the Price Band and the revised Bid/Issue period, if applicable, will be widely disseminated by notification to the Stock Exchanges, by issuing a press release, and also by indicating the change on the terminals of the Syndicate Members and by intimation to the Designated Intermediaries.

This is an Issue in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (“SCRR”), read with Regulation 31 of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended (the “SEBI ICDR Regulations”). The Issue is being made through the Book Building Process in terms of Regulation 6(1) of the SEBI ICDR Regulations, wherein not more than 50% of the Issue shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs”) (the “QIB Portion”), provided that our Company, in consultation with the BRLMs, may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis, out of which one- third shall be reserved for domestic Mutual Funds only, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price, in accordance with the SEBI ICDR Regulations. In the event of under-subscription, or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the Net QIB Portion. Further, 5% of the Net QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Issue Price. However, if the aggregate demand from Mutual Funds is less than 5% of the QIB Portion, the balance Equity Shares available for allocation in the Mutual Fund Portion will be added to the Net QIB Portion for proportionate allocation to QIBs. Further, not less than 15% of the Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders (“Non- Institutional Portion”) of which one-third of the Non-Institutional Portion shall be available for allocation to Non-Institutional Bidders with an application size between ₹ 200,000 to ₹ 1,000,000 and two-thirds of the Non-Institutional Portion shall be available for allocation to Bidders with an application size of more than ₹ 1,000,000 and under-subscription in either of these two sub-categories of Non-Institutional Portion may be allocated to Non-Institutional Bidders in the other sub-category of Non-Institutional Portion, and not less than 35% of the Issue shall be available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Issue Price. All Bidders (except Anchor Investors) are required to mandatorily utilize the Application Supported by Blocked Amount (“ASBA”) process providing details of their respective bank account (including UPI ID for UPI Bidders using UPI Mechanism), in which the corresponding Bid Amounts will be blocked by the SCSBs or the Sponsor Banks, as applicable. Anchor Investors are not permitted to participate in the Issue through the ASBA process. For details, see “Issue Procedure” on page 344 of the RHP. Anand Rathi Advisors Limited, IIFL Securities Limited and JM Financial Limited are the book running lead managers to the issue and Kfin Technologies Limited is the registrar to the offer. All capitalized terms used herein and not specifically defined shall have the same meaning as ascribed to them in the RHP.

RHP Link: https://jmfl.com/docs/default-source/default-document-library/red-herring-prospectus0fdbba81d5a0683b8507ff0300a28ed8.pdf?sfvrsn=0