Business

Hyderabad-based EMIL offers shares worth Rs 500 crore

Hyderabad: Electronics Mart India Limited (EMIL), founded by city-based entrepreneur Pavan Kumar Bajaj and one of the fastest growing companies in the retail of consumer durables and electronics business, has filed preliminary papers with the Securities and Exchanges Board of India (SEBI) to raise `500 crore through an initial public offer, according to the draft red herring prospectus (DRHP).

The retail electronics and consumer durables chain — Bajaj Electronics — is run by Pavan and Karan Bajaj, and has retail store space spread over 9.9 lakh square feet across 99 stores.

EMIL’s multi brand outlets operate under the brand name of Bajaj Electronics, which employs more than 1,800 professionals across its operations.

As per the filing, the company said it intends to use the proceeds from the IPO to fund capital expenditure, and incremental working capital requirements of Rs 133.8 crore and Rs 200 crore, respectively. While Rs 50 crore will be used towards payment of debt, funds will also be used for general corporate purposes.

For the financial year 2021, the company's income was pegged at Rs 3,207.37 crore compared to Rs 3,179.02 crore the year before. Its net profit in the year declined to Rs 58.62 crore from Rs 81.61 crore because of the Covid-19 pandemic induced impacts and reduced consumer spending.

Also, on the anvil are take its Bajaj Electronics chain to more locations in Telangana state and Andhra Pradesh, adding to its already existing status as one of India's largest consumer durables and electronics store brand. The company also has plans to expand its presence in Delhi and the National Capital Region. 

Source:

www.deccanchronicle.com

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