As part of a pan-India strategy, Hyderabad-based consumer durables retailer Electronics Mart India Ltd, which operates the Bajaj Electronics network of stores, wants to strengthen its position in AP and Telangana after the IPO.
Last month, Electronics Mart India Ltd filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) to raise Rs 500 crore through an IPO.
The company intends to spend Rs 134 crore on capital expenditure for retail and warehouse expansion, Rs 200 crore on working capital, and Rs 50 crore on debt repayment out of the total funds intended to be raised.
“Our company proposes to utilise a portion of the net proceeds of this issue amounting up to Rs 133.8 crore towards funding of capital expenditure for expansion and opening of our stores and warehouses in Telangana, AP and Delhi National Capital Region for an aggregate amount of up to Rs 44 crore, up to Rs 47 crore and up to Rs 43 crore, during the FY22, FY23 and FY24, respectively,” it said in the DRHP.
