Home/Article/Elin Electronics Limited IPO Details with Share Price and Issue Size
Elin Electronics Limited IPO Details with Share Price and Issue Size
24 Jul 2023
Opening Date  20, December 2022
Closing Date 22, December  2022
Refund Initiation 28, December  2022
Listing Date 30, December 2022
Face Value ₹5 per equity share
IPO Price Band ₹234 to ₹247 per equity share
Minimum Order Quantity 60 Shares
Issue Size ₹475 Cr

 

The month of December saw a couple of IPOs getting listed in the secondary market. Amongst these were Sula Vineyards Ltd ipo, Landmark Cars Ltd and Abans Holdings ipo. While Uniparts Ltd had an unfortunate listing, wherein it listed at a discount of 6.47%, investors are awaiting the listings of Sula Vineyards, which received a happy response from retail and institutional investors. Now, as we come towards the end of this IPO month, there are some IPOs queued to be going live - among which is - Elin Electronics Ltd. In this article, let’s study the details of this IPO which will eventually help you to decide if it’s investment-worthy or not!

About the Company -

Incorporated in 1969, Elin Electronics Ltd 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, and is one of the largest fractional horsepower motors manufacturers in India. Based on the overall market, Elin Electronics Ltd is projected to be the largest player in this category, with a market share of 12 % in Fiscal 2021.

Elin Electronics Ltd manufactures and assembles a wide array of products and provides end-to-end product solutions. The company serves under both original equipment manufacturer (“OEM”) and original design manufacturer (“ODM”) business models. Under the OEM model, the company manufactures and supplies products based on designs developed by its customers, who then further distribute these products under their own brands. Under the ODM model, in addition to manufacturing, the EMS company also conceptualizes and designs the products which are then marketed to its customers’ prospective customers under their brands. Elin Electronics Ltd have developed ODM capabilities with respect to lighting products and small appliances.

The financials of the company for the last three financial years are given as below:

 

Particulars Three month period ended Sept 30, 2021 As of and for the Financial Year ended March 31
2021 2020 2019
  Equity share capital 204.2 68.07 68.07 49.57
  Networth 282.24 262.27 227.76 199.02
  Total Borrowings 395.15 371.45 400.66 413.14
  Revenue from Operations 518.24 862.37 785.55 828.54
  EBITDA 38.45 69 56.24 58.21
  Profit after Tax 19.33 34.87 27.48 29.07
  Earnings per Share (diluted) 4.73 8.53 6.73 7.12
  Return on Equity 7.1 14.23 12.88 15.72

 

all numbers stated are in crore, except share data.

*not annualized

Elin Electronics Ltd details -

Let’s now move on to the main part of this article. Here, we’re going to be looking at some of the most important details of this upcoming IPO viz - Elin Electronics Ltd date and its share price.

Elin Electronics Ltd issue date -

According to the Red Herring Prospectus filed by the company, the public issue of the equity shares is going live from December 20 and will be available for subscription until December 22, 2022.

Elin Electronics Ltd issue size -

The total issue size of the latest Elin Electronics Ltd India Ltd is declared to be ₹475 crores. This is a mix of OFS and Fresh issues. The Fresh issue aggregates to ₹175 crores, while the OFS aggregates up to ₹300 crores.

50% of the offer is for QIBs (Qualified Institutional Buyers), 35% for retail investors, and the balance 15% for NIBs (Non-institutional Investors).

Elin Electronics Ltd share price

The price band of the company’s upcoming IPO is declared to range between ₹234 to ₹247 per equity share

Elin Electronics Ltd listing

Since the IPO of Elin Electronics Ltd is from the mainboard, it would be listed on both - the National Stock Exchange (NSE) as well as the Bombay Stock Exchange (BSE)

Elin Electronics Ltd objectives

The net proceeds of the Issue, i.e. gross proceeds of the Issue are proposed to be utilized in the following manner:

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

Elin Electronics Ltd Strengths

  • 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
  • Consistent and strong track record of financial performance
  • Expanding operations in medical diagnostics cartridges

Elin Electronics Ltd India Ltd risks

  • Highly dependent on certain key customers for a substantial portion of the revenue
  • Highly dependent on obtaining firm and long-term volume purchase commitments from the customers
  • Fluctuation in operating revenue subject to seasonality
  • Increase, delay, or interruption to any form of transportation, or policies, may affect the supply of raw materials from suppliers.

Conclusion

If you wish to become a part of this exciting IPO opportunity, you will need to have an online Demat and trading account, which will help you get shares of your favorite companies. To get an online DEMAT account for Free*, all you have to do is sign-up with Motilal Oswal and get started.

If you are an existing customer with Motilal Oswal, you can now invest in the IPOs in just one click through UPI payment and get the latest update on Upcoming IPO 2023!

It’s all easy. It’s all good.

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