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Electronics Mart India Ltd, a consumer durable retail chain, has filed its draft red herring prospectus (DRHP) with Securities and Exchange Board of India to raise ₹500 crore through an initial public offering.
The Hyderabad-based company plans to use the IPO proceeds to fund its capital expenditure and working capital requirements to the extent of ₹133.8 crore and ₹200 crore respectively, and repayment of ₹50 crore debt besides corporate purposes.
EMIL was founded over three decades ago by Pavan Kumar Bajaj and Karan Bajaj as a proprietary concern with electronics store, Bajaj Electronics. Today, it is among fastest growing retail consumer durables and electronics chain with over one crore customers, 7,50,000 square feet of retail space across 90 plus stores. It is supported by a workforce of over 2,600 professionals.
It plans to deepen its store network in Andhra Pradesh and Telangana and gradually expand its network in NCR. EMIL displays more than 6000 stock keeping units (SKUs) and also operates across wholesale and ecommerce channels.
In FY21, the company’s total income stood at ₹3,207.37 crore up from ₹3,179.02 crore a year ago. Net profit for the period stood at ₹58.62 crore versus ₹81.61 crore last year.
Anand Rathi Advisors Limited, IIFL Securities Limited and JM Financial Limited are the book running lead managers to the issue.