Electronics Mart, whose Rs 500 crore-IPO was a hit among investors, is likely to finalise basis of allotment on Wednesday. As per marketmen, the counter was commanding a premium of about Rs 30 in the grey market, thanks to the consumer durables retailer’s decent financials and business model, attractive valuations and solid investor demand.
“Based on what grey market premiums suggest, a 40-50 per cent listing pop for Electronics Mart looks likely,” said Narottam Dharawat of Mumbai-based Dharawat Securities.
Dharawat said a strong investor demand was already visible for Electronics Mart during the bidding process. Adding to that is the optimism in the market over the recent strong IPO listings and a strong pipeline ahead, he said.
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Electronics Mart IPO, which was sold from October 4 to October 7 in Rs 56-59 price band, got 71.93 times bids. This was the second highest in terms of bids that any IPO received in 2022 so far after Harsha Engineers International’s 74.70 times. Dreamfolks Services (56.68 times) and Campus Activewear (51.75 times) remained two other IPOs that received over 50 times subscription.
Harsha Engineers had on September 26 debuted at a 36 per cent premium over its issue price of Rs 330. Dreamfolks Services saw a 56 per cent listing pop earlier that month. Campus Activewear, meanwhile, jumped 23 per cent on its listing in May this year.
In case of Electronics Mart, the IPO received bids for 4,49,53,64,644 shares against the issue size of 6,25,00,000 shares, with the QIB quota getting 169.54 times subscription. The quotas reserved for non institutional investors (NIIs) and retail individual investors (RIIs) were subscribed 63.59 times and 19.71 times, respectively.
As per the red herring documents filed with ROC, the basis of allotment for the IPO may take place on Wednesday, the initiation of refunds is likely on October 13 and the credit of shares to demat accounts is likely by Friday.
In all likelihood, the stock could list on stock exchanges on Monday, October 17.
Investors, who bade for the IPO, may check the allotment status on the BSE website by visiting HERE
Prospective allottees would be required to click on ‘Equity’ and select ELECTRONICS MART INDIA LIMITED’ under the ‘Issue Name’ tab. They would also be needed to either type Application number or PAN number. Check ‘I am no robot’ and hit search.
An alternate way could be to visit the registrar’s website, which in this case is KFin Technologies.
Bidders can visit HERE
They need to select the IPO and give either of the three: application number, demand account and PAN ID. They would then be required to click on security check and hit submit.