Shares of consumer durables retail chain Electronics Mart India made a strong debut on Monday, getting listed at a premium of over 52 per cent from their issue price on the stock exchanges.
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The stock got listed at Rs 90.00 apiece on the National Stock Exchange (NSE), thereby registering a gain of 52.54 per cent from its offer price of Rs 59.00, while on the BSE, it opened at Rs 89.40, up 51.53 per cent from the issue price.
However, within the first few minutes of listing, the Electronics Mart stock dipped from its listing level. During the first 30 minutes of trade, the shares hit a low of Rs 83.25 on the BSE and Rs 83.30 on the NSE and a high of Rs 91.00 on both the bourses.
At 10:30 am, the scrip was trading at Rs 87.35 on the BSE, up 48.05 per cent from the issue price while on NSE it was at Rs 87.95, up 49.07 per cent. The market capitalisation stood at Rs 505.27 crore, data from the BSE showed.
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Over 5.30 crore shares of Electronics Mart India were traded so far on NSE while around 35.62 lakh shares have exchanged hands on the BSE, data from the respective stock exchange showed.
Electronics Mart India (EMIL) was founded by Pavan Kumar Bajaj and Karan Bajaj as a proprietary concern with a consumer durables and electronics store under the name of Bajaj Electronics. Its multi-brand outlets operate under the brand name Bajaj Electronics other than two specialised stores under the name ‘Kitchen Stories’, catering to kitchen specific-requirements and one specialised store format under the name ‘Audio & Beyond’, focusing on high-end home audio and home automation solutions.
The IPO was available for public subscription from October 4-7, 2022 and got subscribed 71.93 times by the final day.
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Commenting on the listing, Ravi Singh, vice president and head of research at Share India Securities told indianexpress.com, “Keeping in view the uncertainty in the market sentiments, investors may book profit in their subscriptions partially at current levels and place a trailing stop loss around Rs 80 levels for the remaining positions. To re-enter, they can wait for lower levels for a better return from a long-term perspective.”
Reacting to the listing, Pravesh Gour, Senior Technical Analyst at Swastika Investmart said, “Electronics Mart India Limited has debuted at Rs 90 i.e. ~53 per cent over its issue price. The company’s strong listing can be attributed to strong interest from investors, reasonable valuations, and a sanguine growth outlook. The company is the fourth largest consumer durable and electronics retailer in India with a leadership position in South India having the majority of its stores located in Telangana and Andhra Pradesh. The consumer durable and electronics industry in India is underpenetrated and has a long runway of growth. Nevertheless, the electronic and consumer durable market is extremely competitive and has been disrupted by e-commerce players. Further, the company faces significant competition from players like Reliance Retail, Croma, etc. Therefore, we advise investors to lock in listing gains and only aggressive investors should consider making a long-term commitment to the company. Those who applied for listing gains can maintain a stop loss of Rs 77.”
