Hyderabad-based consumer durables retail chain Electronics Mart India Ltd has filed its Draft Red Herring Prospectus (DRHP) with the market regulator, Securities and Exchange Board of India, in order to increase by Rs 500 crore through an initial public offering (IPO).
The company intends to use the net proceeds to finance its capital expenditure and additional working capital requirements to the tune of Rs 133.8 cr and Rs 200 cr respectively, the repayment / prepayment of Rs 50 crs of its debt in addition to the general objectives of the company.
A heritage of over three decades, EMIL was founded by Pavan Kumar Bajaj and Karan Bajaj as a company that owns a consumer durable and electronic goods store under the name “M / s Bajaj Electronics”. Today it ranks at number 4 in India and one of the fastest growing in the retail of consumer durables and electronics with over 1 crore of customers, 7,50,000 square feet of business space. retail in over 90 stores supported by a strong workforce of over 2,600 professionals. Its multi-brand outlets operate under the brand names of Bajaj Electronics, with the exception of two specialty stores under the name Kitchen Stories that meet the specific needs of the kitchen. It is also in the process of setting up another niche point of sale under the name Audio & Beyond, offering high-end audio and home automation solutions.
Currently, it is the largest and most trusted electronics retailer in South India, Bajaj Electronics – a brand owned by EMIL, is a household name in consumer electronics retail. In line with its cluster-driven expansion strategy, it plans to deepen its store network in Andhra Pradesh and Telangana and gradually expand its network in the NCR.
EMIL displays over 6000 storage units (SKUs) with a focus on large appliances such as air conditioners, televisions, washing machines, refrigerators; mobile devices and small devices in addition to other computing devices in more than 70 brands of consumer durables and electronics. It also operates on wholesale and e-commerce channels.
In FY 21, the company’s total income was Rs 3,207.37 crore compared to Rs 3,179.02 crore a year ago. Net profit for the period amounted to Rs 58.62 crore versus Rs 81.61 crore last year, mainly an impact due to the ongoing pandemic and reduced consumer spending. According to the CRISIL report shown in the draft document, between FY15-20, its revenue increased at a CAGR of 25.60% and, for FY20, its EBITA margins were the highest among its peers.
Anand Rathi Advisors Limited, IIFL Securities Limited and JM Financial Limited are primarily responsible for the problem.