Where is Lt. Jhunjhunwala's Rs 12,200 cr stock headed?
The quota reserved for qualified institutional buyers (QIBs) was subscribed 16.50 times while retail individual investors RIIs attracted 10.31 times bids, according to NSE data on consolidated bids.
The 500 crore IPO, which is being sold in the Rs 56 59 price band, will conclude today. Electronics Mart is valued at 0.6 times EV sales and 22 times P E of FY 22 in the upper price band.
Electronics Mart s higher working capital requirements would restrict FCF generation in the next two years because of the fact that the company makes upfront payment to suppliers coupled with superior growth prospects. Capital infusion worth Rs 500 crore would help in financing working capital requirements to the tune of Rs 220 crore and also increase store additions by opening 60 stores over the next three years, ICICI Direct said in a note.
The brokerage has a'subscribe' rating on the issue, citing reasonable valuations.
Market watchers said the grey market premium GMP for the issue stood at Rs 27 -- 30 against Rs 35 a day ago.
Electronics Mart is the fourth largest consumer durable and electronics retailer in India, with a leadership position in South India. As of August 31, it had 112 stores in 36 cities with a retail business area of 1.12 million square feet.
Elara Securities finds the IPO attractively priced and has recommended a .
Ventura Securities believes that the stock, when it gets listed, could potentially touch the Rs 201 level in the long term.
The company has a revenue CAGR of 19.4 per cent, Ebitda CAGR of 22.1 per cent and PAT CAGR of 22.9 per cent over FY 22 -- 25 E, according to the brokerage.