Electronics Mart India IPO GMP: Ahead of allotment, Electronics Mart India remains steady in grey market – Blue Barrows

As investors are anxiously awaiting the debit messages from banks for the allotment of shares, who bid for the initial public offering (IPO) of Electronics Mart India (EMIL), the company continues to be firm in the grey market.

The consumer electronics retailer is commanding a premium of Rs28-30 in the unofficial market, which was Rs 35 at its peak. However, this

premium signals that it is heading towards a listing pop of up to 50 per cent over its issue price of Rs 59.

According to dealers tracking the grey market, the small issue size, growth prospects and super-solid response to issue are the key factors guiding the lofty premiums there.

Abhay Doshi, co-founder, UnlistedArena, said the issue valuations were reasonable, leaving something on the table for investors, which attracted the bulk of investors to bid for it.

“Robust subscription status for a small issue size was another plus for the company,” it added. “Furthermore, growth prospects and sound financials also boosted the morale for the issue.”

Even a majority of brokerages were positive on the EMIL issue and had a ‘subscribe’ rating – thanks to its reasonable valuations, growth prospects and dominance in the markets.

Electronics Mart India’s IPO was open for subscription between October 4 and 7 as the company aimed to raise Rs 500 crore through its primary stake sale, which was entirely a fresh issue. It was overall subscribed 71.93 times.

The quota reserved for qualified institutional buyers (QIBs) was subscribed a whopping 169.54 times while that reserved for non-institutional investors (NIIs) and retailers was subscribed 63.59 and 19.72 times, respectively.

Investors who bid for the issue can check their allotment status on the official website of the BSE and Kf Technologies, which is the registrar to the issue.

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