Elin Electronics IPO – Review, Bid, Size, Allotment, Subscription, GMP & RHP

Elin Electronics is currently leading the EMS, that is, the Electronics Manufacturing Services market. The end-to-end service provider is nearing its three-day IPO subscription on December 20 to raise Rs. 475 Cr.

Many stockbrokers and regular investors are showing a positive reaction to the Elin Electronics IPO listing due to the strong ODM and OEM-based business model.

With a diversified product portfolio and a large customer base, Elin Electronics is successfully able to have a healthy financial status and growth prospects.

In this article, a detailed guide is provided covering all the relevant details about the Elin Electronics IPO Review.

Elin Electronics IPO Overview

Being one of the largest OEM and ODM solution providers in the industry, Elin Electronics has been working with multiple leading fans/lighting and kitchen/small appliance companies in India.

They have three manufacturing units located in Baddi (Himachal Pradesh), Ghaziabad (Uttar Pradesh), and Verna (Goa).

Each of the locations has got its R&D team working on every aspect of the ODM and OEM models. The constant developments and upgrades of the operations are what enable them to cater to 290+ customers on an annual basis.

Read ahead to get more information on its financials, key management and Elin Electronics IPO.

Elin Electronics IPO Important Dates

The confirmed dates related to the IPO event have been publicised. The subscription for the Elin Electronics IPO begins on December 20, 2022, and will give the interested parties a window of 3 days to apply for it.

The IPO closes on December 22, 2022. The allotment date of the IPO is December 27, 2022. Once the allotment is done, the listing will be shared with the public. The refund and listing dates are December 28 and December 30, respectively.

The company’s Red Herring Prospectus (RHP) is already available on the web. For any comprehensive details on the Elin Electronics IPO dates, feel free to check the document.

Elin Electronics IPO Price, Size, Share Offerings

Elin Electronics has received approval to raise Rs.475 Cr through the public listing, by SEBI. The shares are listed in both the stock exchanges, BSE and NSE. Out of this issue size, >60% is issued as an offer for sale and the remaining <40% is a fresh issue.

The face value of the shares is Rs.5 per equity share and the Elin Electronics IPO price band is Rs.234 to Rs.247 per share.

The investors will bid at this price range and then the organisation will issue the shares on a pro-rata basis or refund the oversubscribed shares.

The Elin Electronics IPO size ranges from 1 to 13 or amounts between Rs.14,820 to Rs.192,660. For HNIs, there are two classes, S-HNI and B-HNI. The former has a minimum lot size of 14 and the latter has 68.

Elin Electronics IPO Grey Market Premium

Grey Market Premium or GMP, is the price at which the shares are traded before getting listed on the exchanges. It is the price determined based on the demand of the respective IPO.

The gey market is unregulated and is running on the mutual trust between the stockbrokers and investors.

Many experienced investors even follow the GMP before actively investing in the IPO as the price is completely based on market sentiments and trends. The GMP is maintained at Rs. 47 which is a good sign as it is around 19% higher than the price band.

The above table clearly states the relevant information about the Elin Electronics IPO GMP.

Elin Electronics IPO Subscription Status

The Elin Electronics IPO Subscription commences on December 20 and closes on December 22. The investors can take the necessary steps to start subscribing during these three days.

The Elin Electronics live subscription status can also be checked to get updates on the listings.

The lead managers handling the IPO issue are:

• Axis Capital Limited
• JM Financial Limited

The two lead managers have jointly handled 62 public issues in the past four financial years.

Elin Electronics IPO Allotment Status

The Elin Electronics IPO Allotment will be done in a regulated manner. The shares are divided into three broad categories-Retail Quota, QIB Quota and NII Quota.

The percentage share for each of them is as follows:

• Retail Quota- 35%
• QIB Quota- 50%
• NII Quota- 15%

Based on the demand for the shares of Elin Electronics, the shares can either get undersubscribed or oversubscribed.

In the case of the former, every investor will be allotted the number of shares they have applied for and on the other hand, in the case of the latter, the organisation can either allot the issued number of shares and refund the excess or use the pro-rata approach.

The registrar of the IPO listing is KFin Technologies Limited.

Elin Electronics IPO Live Performance

To continuously track the live Elin Electronics IPO performance and status of the IPO, use the below link.

It will redirect to the page sharing all the information on the performance of the newly listed share and the Elin Electronics IPO Share Price.

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Latest Elin Electronics IPO News

Elin Electronics opens its subscription on December 20, 2022. The issues are fully priced with a price band of Rs.234 to Rs.247 per share. Post the IPO, the projected paid-up equity capital will get enhanced by Rs.3.54 Cr at Rs.24.83 Cr.

Based on the IPO price, the upper band can help the company reach a market cap of Rs.1,226.58 Cr.

Despite the strong performance and market evaluation, make sure to perform a personal analysis and study the Elin Electronics IPO News before placing the bid.

Elin Electronics – Company Review

Elin Electronics incorporated in 1969 is operating in a wide array of appliances and other end-to-end solutions. It has also gained the title of being one of the largest fractional horsepower motors manufacturers, over the years.

The company has been showcasing a strong growth potential along with a steady financial performance, which became key determinants for the approval of the IPO listing by SEBI.

In terms of market share, EEL is projected to be the leading player in all of its product verticals. It is into manufacturing fans and lighting along with providing products to small and kitchen appliance companies.

As of October 31, 2022, Elin Electronics houses 2,935 permanent employees and 1,682 contract labourers at its three manufacturing units.

Products or Services

The OEM and ODM business model operates to provide best-in-class products to clients. Elin Electronics designs manufacture, and supplies, a diversified product profile. It constitutes of:

• LED lighting and switches
• Ceiling fans, TPW and fresh air fans
• Small appliances such as toasters, steam irons, hand blenders, hair dryers, toasters and hair straighteners
• Modular switches and sockets
• Fractional horsepower motors are used in heat convectors, air conditioners, chimneys, dry/wet grinders, TPW fans, etc.
• Miscellaneous products

In Fiscal Year 2021, the market share for LED lighting and flashlight and small appliances was 7% and 1.7% respectively.

Promoters and Holding

The founder of the organisation is Kamal Sethia who is also the key promoter of the organisation.

The key promoters of Elin Electronics are:

• Mangi Lall Sethia (Chairman and Wholetime Director)
• Kamal Sethia (Managing Director)
• Kishore Sethia (Director, Operations)
• Gaurav Sethia (Wholetime Director)
• Sanjeev Sethia (Wholetime Director)
• Sumit Sethia (Wholetime Director)
• Suman Sethia
• Vinay Kumar Sethia
• Vasudha Sethia

Is Elin Electronics good for Investment?

Elin Electronics operate in the EMS market. Currently, the industry stands at Rs. 2,65,400 crores in 2021 and is projected to grow to Rs. 9,96,300 crores at a CAGR of 30.3% by 2026. And in this market, EEL successfully holds a 17% market share.

The firm has 149 moulding units and 105 power presses in its three manufacturing units. These units enable the organisation to maintain an effective economy of scale.

The fund raised from Elin Electronics IPO will be incorporated into expanding the R&D team of all three locations and to continue upgrading the OEM and ODM business model.

Elin Electronics Financial Statements

Elin Electronics IPO Review

The Elin Electronics IPO Review conducted by many parties are highlighting that for the last 2-3 fiscal years, the company has been successfully holding a positive trend in revenue with an EBITDA margin ranging from 7-8%.

Concerning the strong performance, Elin Electronics IPO is coming up with a maiden combo of 70,85,020 shares as fresh equity and approximately 1,21,45,749 shares as an offer for sale. The issues are open to the public on December 20.

The net proceeds from the listing will be utilised in clear debt and upgrade operations. Out of the funds, Rs.80 Cr will be used to write off debt and Rs.48.97 Cr to expand and upgrade the three facilities.

Elin Electronics IPO Details

Here are few more details you need to know before investing in Elin Electronics IPO –

Elin Electronics IPO Issue Object

Elin Electronics has proposed diverse objectives for making the IPO offer and some of the objectives are:

1. Repayment/ prepayment, in full or part, of certain borrowings availed by their Company;
2. Funding capital expenditure towards upgrading and expanding their existing facilities at (i) Ghaziabad, Uttar Pradesh, and (ii) Verna, Goa; and
3. General corporate purposes

Elin Electronics IPO – Basis of Offer Price

The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.

Qualitative factors are:

• Established market position in key verticals including leadership in fractional horsepower motors;
• Diversified products resulting in a de-risked business model;
• Entrenched relationships with a marquee customer base;
• High degree of backward integration resulting in higher efficiencies, enhanced quality of products and customer retention capability; and
• Consistent and strong track record of financial performance.

Quantitative factors are:

Elin Electronics IPO Lead Managers

Here are the list of Lead managers –

• Axis Capital Limited

• JM Financial Limited

Elin Electronics IPO Registrar to offer

Check out the details of the registrar here –

KFin Technologies Private Limited
(Formerly known as Karvy Fintech Private Limited)
Selenium, Tower B, Plot No 31 and 32
Financial District, Nanakramguda, Serilingampally
Hyderabad, Rangareddi – 500032
Telangana, India
Tel: +91 40 6716 2222
E-mail: elinindia.ipo@kfintech.com
Investor grievance e-mail: einward.ris@kfintech.com
Website: www.kfintech.com
Contact person: M Murali Krishna
SEBI registration number: INR000000221

Elin Electronics IPO – Other Details

• Statutory Auditor – Oswal Sunil & Company, Chartered Accountants
• Legal Counsel to the Company – J. Sagar Associates
• Bankers to the Company – NA

Elin Electronics IPO Verdict by Stock Brokers

Based on the financial performance and the issue price in the grey market, the Elin Electronics IPO price range seems comparatively cheap.

This makes the listing an attractive offer. Most marquee investors are looking to invest for medium- or long-term returns.

Elin Electronics IPO – Conclusion

The company has effectively established itself in the key manufacturing verticals resulting in the de-risked business model.

The inclusion of backward integration in the operations enables them to get more exposure into the market and also provide quality products for a better customer retention rate.

Overall, the financial statement determinants show a strong performance which in turn makes the IPO quite attractive to the investors.

If post the IPO listing, the company is successfully able to keep up with the changing trends then based on the market sentiment, the investors of EEL can expect a return of 10%-15%.

Hope this Elin Electronics IPO Review has been informative for you to start your research and participate in the listing.

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Elin Electronics IPO Review FAQs

What is the Issue Size of Elin Electronics IPO?

The Company is making an initial public offer of NA equity shares. They vividly portray the aspects of the issue in this article. You can check the stats on the fresh issue, Offer for sale, and net issue.

What is the Price band of Elin Electronics IPO?

The price band for this particular IPO ranges between Rs 234 to Rs 247. As far as the face value of the share is of concern, it is Rs.5 per share.

What is the Elin Electronics IPO Open Date?

The opening and closing dates for this IPO have been updated. The IPO is set to open on Dec 20, 2022, while the closing date is set at Dec 22, 2022.

What is the Elin Electronics IPO Allotment Date?

They also have the news regarding the respective allotment dates of this IPO. Basis of Allotment finalization is on Dec 27, 2022, refund initiation is on Dec 28, 2022, credit of shares is on Dec 29, 2022, and share listing date is on Dec 30, 2022.

What is the Elin Electronics Listing Date?

Shares of this company shall be listed in the exchanges Dec 30, 2022. The date, when the listing would be done, is stagnant on Dec 30, 2022.

Who is the Registrar of Elin Electronics IPO?

One of the reputed registrars is managing the issue of this IPO, i.e. KFin Technologies Private Limited. Their website will help you regarding the further information you are on the lookout for.

Who is the Promoter of Elin Electronics?

Here are the promoters of this IPO – Mangi Lall Sethia, Kamal Sethia, Kishore Sethia, Gaurav Sethia, Sanjeev Sethia, Sumit Sethia, Suman Sethia, Vasudha Sethia, and Vinay Kumar Sethia. You can refer to the RHP for further information on the promoter. You will find the link to RHP in the article.

What is the GMP of Elin Electronics?

They have obtained the GMP of this IPO and it is Rs. Disc. Further insights of Kostak rate and subject to sauda or SS are as well included in this report.

Is Elin Electronics IPO good for Investment?

They have further provided the financial status of the company in this article, from the past few years. You can refer to the same, and also check the line of operations they are into and then decide to invest in the IPO.

What is the PAT of Elin Electronics Company?

They have the information of company financials, and according to that, they have the figures from the last few years to provide. PAT for the financial year 2021 in Million is 348.57, 2020 is 274.87, 2019 is 290.74. PAT from Sep 2021 is 193.33.

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