Consumer durables and electronics retailer Electronics Mart India rose 52% on the exchange on Monday, largely in line with analysts’ expectations. The stock opened at Rs 90 on the NSE with an offering price of Rs 59, while the BSE opened at Rs 89.40.

The Rs 500 crore public offering received a strong response from investors, who subscribed 71.93 times. Qualified institutional investors buy 169.54 times the quota, non-institutional investors buy 63.59 times the reserved portion, and retail investors buy 19.71 times the reserved portion.

The price range of the offer is Rs 56-59 per share. In addition to general corporate purposes, the funds will be used for store and warehouse expansions and openings, working capital needs and debt repayment.

Analysts say attractive valuations, expected growth in the consumer goods market and strong presence in southern India are the main reasons for the IPO’s success.

The company also has a healthy balance sheet. Despite the pandemic, its operating income grew at a compound annual growth rate (CAGR) of 17.09% from Rs 31,72.47 crore in FY20 to Rs 4,349.32 crore in FY22. Its three-year average return on equity and return on capital was 16% and 18%, respectively.

Angel Broking, Elara Capital, ICICI Direct, Hem Securities, Choice Broking, Indsec and Nirmal Bang recommend a “subscribe” rating on this issue. Indsec Securities is bullish on the company as rising per capita income and accelerating urbanisation drive consumer durables and other electronics sales.