Electronic Mart India IPO subscribed 71.93 times at close

The Rs.500 crore IPO of Electronic Mart India Ltd, consisted entirely of a fresh issue of Rs500 crore. There is no offer for sale component in the IPO. The IPO saw encouraging response on Day-1 and Day-2 of the IPO as well as on Day-3, the IPO built on the demand across segments. As per the combined bid details put out by the BSE at the close of Day-3, Electronic Mart India Ltd IPO was subscribed 71.93X overall, with strong demand coming from the QIB segment as well as robust demand from the HNI segment and sedate demand from the retail segments. The issue has closed for subscription on 07th October 2022. 

As of close of 07th October 2022, out of the 625.00 lakh shares on offer in the IPO, Electronic Mart India Ltd saw bids for 44,953.65 lakh shares. This implies an overall subscription of 71.93X. The granular break-up of subscriptions was dominated by the QIBs while the HNIs and the retail investors were also quite robust in their response. QIB bids and NII bids typically gather most of the momentum on the last day, and that is what we saw in this issue too.

QIB Portion

Let us first talk about the pre-IPO anchor placement. On 03rd October 2022, Electronic Mart India Ltd did an anchor placement of 2,54,23,728 shares at the upper end of the price band of Rs.59 to 20 anchor investors raising Rs.150 crore. The list of QIB investors included a number of marquee global names like Pinebridge Global, Ashoka India Equity, Cohesion MK Best Ideas and Societe Generale (ODI). Domestic anchor investors included Nippon India MF, HDFC MF, Mirae Mutual Fund, Birla Mutual Fund, Tata MF, Whiteoak and Sundaram.

The QIB portion (net of anchor allocation as explained above) has a quota of 178.57 lakh shares of which it has got bids for 30,275.88 lakh shares at the close of Day-3, implying a subscription ratio of 169.54X for QIBs at the close of Day-3. QIB bids typically get bunched on the last day but the heavy demand for the anchor placement had given an indication of the institutional appetite for the Electronic Mart India Ltd IPO subscription overall.

HNI / NII Portion

The HNI portion got subscribed 63.59X (getting applications for 8,516.90 lakh shares against the quota of 133.93 lakh shares). This is a relatively strong response on Day-3 but of course this segment normally sees the maximum response bunched on the last day. Bulk of the funded applications and corporate applications, come in on the last day of the IPO. 

Now the NII/HNI portion is reported in two parts viz. bids below Rs10 lakhs (S-HNI) and bids above Rs10 lakhs (B-HNI). The bids above the Rs10 lakh category (B-HNIs) typically represents most of the major funding customers. If you break up the HNI portion, the above Rs10 lakh bid category got oversubscribed 66.18X while the below Rs10 lakh bid category (S-HNIs) got oversubscribed 58.42X. This is just for information and is already part of the overall HNI bids explained in the previous para.

Retail Individuals

The retail portion was subscribed an impressive 19.71X at the close of Day-3, showing strong retail appetite. It must be noted that retail allocation is 35% in this IPO. For retail investors; out of the 312.50 lakh shares on offer, valid bids were received for 6,160.86 lakh shares, which included bids for 5,345.56 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.56-Rs.59) and has closed for subscription as of the close of Friday, 07th October 2022.