Electronics Mart India IPO Subscribed 3.14 Times On Day 2 

On the second day of its bidding period, the Initial Public Offering (IPO) of Electronics Mart India (EMIL) continued to get a significant response from investors. On the first day alone, the challenge was easily overcome.

The initial public offering (IPO), which opened for subscription on Tuesday, October 4, may remain subscribed through Friday, October 7. As part of its initial stake sale, the company is listing its shares for between Rs 56 and Rs 59 a share in an effort to raise Rs 500 crore.

Buyers placed bids for 19,61,86,298 fairness shares, or 3.14 times as many as the 6,25,00,000 fairness shares that were made available for subscription by 11.45 am on Tuesday, October 6.

The quota for HNI purchasers received 2.78 times as many offers as the retail bidders' quota, which was subscribed 4.12 times. The certified institutional buyer quota received 1.68 times its subscription.

Brokerages continue to be enthusiastic about the issue because of valuations, growth possibilities, and market domination. However, a few have voiced concerns over reliance on major manufacturers and online rivals.

According to Marwadi Financial Services, the company is going public at a P/E of 21.85x and 13.96x with market size of Rs2,270 crore, whilst its competitor is trading at a P/E of 32.7x. This is based on the FY22 and FY23 annualized EPS of Rs 2.70 and Rs 4.23, respectively, on a post-issue basis.