Electronics Mart India IPO Gains 60% Premium in Grey Market

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Electronics Mart India Limited’s Initial Public Offer (IPO) witnesses stout demand in the grey market as trading premiums hit double-digits after the price band declaration. The Rs 500 crore issue was opened for bidding from the 4th to the 7th of October. The price band is Rs 56-59 per share. EMIL shares traded at a massive premium of 60% over the upper price band in the grey market, rising from 50% quoted a few days back.

The grey market is an unsanctioned trading platform for IPO shares. Normally, IPO investors consider this price movement here to instrument the predictable listing price of any issue. The EMIL IPO subscribed around six times with involvement by all kinds of investors from the very first day of bidding. With valuations joined with better revenue growth of CAGR of 17% over two years and an expansion plan on the cards in outside areas leadership territory, the company is now imposing a premium of Rs 35 (59.3%) in the grey market, he added.

Rajnath Yadav, the Research Analyst at Choice Broking, also alleged key reasons for the usual healthy grey market premium for the EMIL IPO that would be attractive estimates, half of the commercial coming from the high-margin large consumer durables and the overall constructive growth outlook of the segment.

The company will be utilising the IPO funds for working capital necessities, opening stores and warehouses, and reimbursing debts, besides general corporate drives. It intends to add nearly 60 stores by the end of FY26.

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