Elin Electronics IPO will open for subscription from 20 December 2022. the company aims for an issue size of ₹475 Cr through this IPO.
About Company
The company is a leading electronics manufacturing services (EMS) manufacturer of end-to-end product solutions for major brands of lighting, fans, and small/ kitchen appliances in India. It is also among the largest fractional horsepower motor manufacturers in India. In addition, it is one of the key players in LED lighting and flashlight with an EMS market share of approximately 7% in Fiscal 2021.
Elin manufactures and assembles a wide array of products and provides end-to-end product solutions. It serves under both original equipment manufacturer (OEM) and original design manufacturer (ODM) business models. Under the OEM model, the company manufactures and supplies products basis designs developed by its customers. Under the ODM model, in addition to manufacturing, the company conceptualizes and designs the products for its clients.
Its product portfolio in EMS includes (i) LED lighting, fans, and switches including lighting products, ceiling, fresh air, and TPW fans, and modular switches and sockets; (ii) small appliances such as dry and steam irons, toasters, hand blenders, mixer grinders, hair dryer, and hair straightener; (iii) fractional horsepower motors, which is used in mixer grinder, hand blender, wet grinder, chimney, air conditioner, heat convector, TPW fans, etc.; and (iv) other miscellaneous products such as terminal block for air conditioners, stainless steel blade for mixer grinders, die casting, radio sets.
Basic details about the company
| Full name | Elin Electronics Limited |
| Sector | Capital Goods |
| Industry | Engineering – Industrial Equipments |
| Company Website | https://www.elinindia.com/ |
The objective of the Issue
- Repayment/ prepayment, in full or part, of certain borrowings availed by the Company.
- Funding capital expenditure towards upgrading and expanding our existing facilities at (i) Ghaziabad, Uttar Pradesh, and (ii) Verna, Goa.
- General corporate purposes
Major Competitive strengths
- Strong management team.
- Diversified product portfolio.
- Wide distribution and business network
IPO Timetable
| IPO Opening date | 20 December 2022 |
| IPO Closing | 22 December 2022 |
| Basis of Allotment | 27 December 2022 |
| Initiation Refund | 28 December 2022 |
| Credit to Demat Account | 29 December 2022 |
| Listing Date | 30 December 2022 |
IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹475.00 Cr |
| Fresh Issue | ₹175.00 Cr |
| Offer for sale | ₹300.00 Cr |
| Face value | ₹5 per share |
| Price Band | ₹234 to ₹247 per share |
| Lot size | 60 Shares |
| Retail Allocation | 35% |
| Listing Exchange | BSE, NSE |
IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 60 | ₹14,820 |
| Retail (Max) | 13 | 780 | ₹192,660 |
| S-HNI (Min) | 14 | 840 | ₹207,480 |
| B-HNI (Min) | 68 | 4,080 | ₹1,007,760 |
Reservation Details
| QIB Shares Offered | 50% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 35% |
Financial Performance
| FY 2019 | FY 2020 | FY 2021 | FY 2022 | H1 FY 2023 | |
| Revenue | 828.55 | 785.58 | 862.38 | 1,093.75 | 604.46 |
| Expenses | 791.79 | 751.27 | 817.41 | 1,041.79 | 577.16 |
| Net income | 29.07 | 27.49 | 34.86 | 39.15 | 20.67 |
| Margin (%) | 3.51 | 3.50 | 4.04 | 3.73 | 3.42 |
Valuations & Margins
| FY 2020 | FY 2021 | FY 2022 | |
| EPS | 6.73 | 8.53 | 9.59 |
| PE ratio | – | – | 24.40 – 25.76 |
| RONW (%) | 12.07 | 13.29 | 12.92 |
| NAV | – | – | 74.21 |
| ROCE (%) | 15.44 | 14.90 | 15.82 |
| EBITDA (%) | 7.16 | 8.00 | 7.31 |
| Debt/Equity | 0.27 | 0.42 | 0.32 |
Company Promoters
- Mangi Lall Sethia
- Kamal Sethia
- Kishore Sethia
- Gaurav Sethia
- Sanjeev Sethia
- Sumit Sethia
- Suman Sethia
- Vasudha Sethia
- Vinay Kumar Sethia
Promoter Holding
| Pre Issue Share Holding | 53.98% |
| Post Issue Share Holding | 32.93% |
Lead Manager(s)
- Axis Capital Limited
- JM Financial Limited
IPO Registrar
KFIN TECHNOLOGIES LIMITED
Selenium Tower – B, Plot 31 & 32, Gachibowli,
Financial District, Nanakramguda, Serilingampally,
Hyderabad – 500 032, Telangana
Phone: +91 40 6716 2222
Email: elinindia.ipo@kfintech.com
Website: www.kfintech.com
Contact Details
ELIN ELECTRONICS LIMITED
4771, Bharat Ram Road,
23, Daryaganj, New Delhi – 110002
Phone: +91 011 43000400
Email: cs@elinindia.com
Website: www.elinindia.com
Allotment Status
Elin Electronics IPO allotment is now available on KFin Tech website. Click on this link to get allotment status.
Final thoughts
Elin Electronics IPO is going to hit Dalal street soon. applying for IPO is purely a personal choice. study well about the company and do subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.
Happy Investing
