Elin Electronics IPO subscription has opened today and it will remain open for bidders till 22nd December 2022.
Elin Electronics Limited, a well-known supplier of electronics manufacturing services (or “EMS”), was founded in 1969. The business is one of the biggest producers of fractional horsepower motors in India and provides end-to-end product solutions for well-known brands of lighting, fans, and small/kitchen appliances.
Elin Electronics Limited manufactures, assembles, and offers end-to-end product solutions for a broad range of products. The business operates using the original design manufacturer (ODM) and original equipment manufacturer (OEM) models.
In terms of EMS, the company offers a variety of products, including I LED lighting, fans and switches, lighting products, ceiling, fresh air, and TPW fans, as well as modular switches and sockets, (ii) small appliances like dry and steam irons, toasters, hand blenders, mixer grinders, hair dryers, and hair straighteners, (iii) fractional horsepower motors used in mixer grinders, hand blenders, wet grinders, chimneys, air conditioner
The company has three strategically positioned production sites in Ghaziabad (Uttar Pradesh), Baddi (Himachal Pradesh), and Verna (Goa).
Additionally, the business has a centralised R&D facility in Ghaziabad, Uttar Pradesh, which focuses on the study and development of OEM and ODM models in all their aspects, including idea sketching, design improvement, the creation of extra features, and testing.
The company served 327, 387, 342 and 297 clients over the seven-month period that concluded on October 31, 2022, correspondingly, in Fiscals 2020, 2021, and 2022.
The company generated Rs 7,855.84 million, Rs 8,623.78 million, Rs 10,937.54 million, and Rs 6,044.57 million in income from operations in fiscal years 2020, 2021, and 2022, as well as during the six-month period that concluded on September 30, 2022.
Elin Electronics IPO Details:
Elin Electronics Ltd.’s initial public offering (IPO) has begun today and will be open for subscription and bids through December 22, 2022. Elin Electronics’ promoters set the price range for its initial public offering at between $234 and $247 per equity share. The business hopes to raise $475 million from this IPO.
According to the schedule outlined in the RHP, the share allotment is most likely to occur on Tuesday, December 27, 2022, and the shares are anticipated to list on Friday, December 30, 2022.
In a BSE filing, Elin Electronics Ltd. stated that it had raised a total of 142.5 crore through anchor investors. In total, 57.69 lakh equity shares worth a maximum of $247 per share have been allotted to Elin Electronics’ anchor investors.
Elin Electronics Ltd. shares have also begun trading on the black market. Market watchers claim that Elin Electronics shares are currently 43 percent more expensive on the black market.
According to the information provided in the red herring prospectus, the net proceeds from the new issue will be used to pay off some debt, fund capital expenditures for upgrading and expanding existing facilities at Ghaziabad (Uttar Pradesh) and Verna (Goa), as well as for general corporate purposes (RHP).
Qualified institutional buyers (QIBs) will receive half of the issue size, non-institutional investors will receive 15%, and retail investors will receive the remaining 35%.
Investors might offer a lot of 60 equity shares and additional multiples to subscribe to Elin Electronics’ initial public offering (IPO). For a single lot of Elin Electronics, they will have to pay Rs 14,820 at the higher pricing range. Both the BSE and the NSE will list the shares.
The deadline for accepting a UPI mandate is Thursday, December 22, 2022, up until 5:00 pm, the final day of IPO bidding, which the applicants must also be aware of. Investors are advised to submit their UPI applications in IPO well in advance to avoid any last-minute technical/systemic restrictions that may hinder their ability to participate in IPOs by successfully accepting the mandate. Further bids with confirmed status of mandate amount blocked (RC100) shall be considered as valid applications.
The issue’s registrar is KFin Technologies, and its book-running lead managers are Axis Capital and JM Financial.
The following are key Elin Electronics ltd IPO details:
1] Elin Electronics ltd IPO GMP: According to market watchers, shares of Elin Electronics are currently available in the grey market for a premium of 43.
2] The pricing range for Elin Electronics’ first public offering is set at $234 to $247 per share by the company.
3] Elin Electronics ltd IPO subscription status: As of 5:00 pm on the first day of bidding, 35% of the public issue had been subscribed. The IPO’s retail part has received 0.44 times its initial subscription.
4] Elin Electronics is planning to raise $475 million from its initial public offering, of which $300 million is set aside for OFS (Offer For Sale).
5] Elin Electronics ltd IPO lot size: Bidders may submit applications in lots for the IPO. The public offering will consist of 60 business shares each lot.
6] Retail investors may apply for a minimum of one lot and a maximum of 13 lots in the Elin Electronics IPO.
7] Elin Electronics ltd IPO allotted date: The most likely date for finalisation of shares is December 27, 2022.
8] The public offering of Elin Electronics is proposed for listing on the BSE and NSE, and it is most likely to list on December 30, 2022.
9] KFin Technologies Limited has been named as the official registrar of the public offering for Elin Electronics ltd.
10] Elin Electronics ltd IPO review: According to Prabhudas Lilladher’s report, the public offering was given the subscribe tag “One can invest in the initial public offering (IPO) for the long term because Elin is one of India’s top manufacturers of fractional horsepower motors and a leading electronics manufacturing services (EMS) provider for major brands of lighting, fans, and small/kitchen appliances. They are also one of the major players in the LED lighting and flashlight sectors, with an EMS market share of roughly 7% in FY2021, and in the small appliances sector, with an EMS market share of 10.7% in FY2021.”
This public offering has the “subscribe” tag from Prabhudas Lilladher, Reliance Securities, Hem Securities, Canara Bank Securities, Swastika Investmart, and others.
“On the valuations front Elin Electronics seems to be reasonably valued at an FY22 PE of 31.3x post-issue and 29.7x its FY23 annualised earnings (post issue), as compared to Dixon Technologies & Amber Enterprises which are trading at P/E of 140.4x & 62.8x respectively,” Anand Rathi Research wrote in its IPO note. We suggest “SUBSCRIBE-Long Term” rating for this IPO because Elin’s Revenue/PAT is expanding at a strong CAGR of 18%/19%, respectively (FY20-22), with an even stronger industry forecast and stable margins.
In its study report, Swastika Investmart stated that “Electronics is one of the country’s fastest-growing businesses. In FY21, domestic production of electronics made up around 74% of the overall market; this percentage is predicted to rise to about 96% by FY26. The nation’s top supplier of electronics manufacturing services (EMS), Elin Electronics Limited.
The business enjoys a well-established market position and solid client relationships. Additionally, it consistently displays good sales growth and a stable margin in its financial performance. The company does, however, compete fiercely for consumers in a small market, which accounts for the majority of its income. When compared to its competitors, the issue’s P/E ratio of 25.75 is attractively priced. We advise subscribing to this topic for the long term after taking all the relevant variables into account.
Santosh Meena, Head of Research at Swastika Investmart, commented on whether or not someone should apply for the IPO: “The business enjoys a well-established market position and solid client relationships.” Additionally, it consistently displays good sales growth and a stable margin in its financial performance.
The company does, however, compete fiercely for consumers in a small market, which accounts for the majority of its income. When compared to its competitors, the issue’s P/E ratio of 25.75 is attractively priced. “We advise subscribing to this issue for the long run after taking all the relevant variables into account.”
Additionally, Hem Securities has designated the IPO as “apply,” noting that the company is launching it at a price range of 234–247 per share and a p/e ratio of 26x on an FY22 basis. Because of its strong backward integration and long-standing ties with a prestigious customer base, the company is able to operate more efficiently, produce goods of higher quality, and retain customers. Additionally, the company’s steady and impressive track record of financial performance makes this issue appealing. In light of the foregoing, we therefore suggest “Subscribe” on issue.
FAQs for Elin Electronics ltd IPO-
What is the IPO of Elin Electronics ltd?
A main-board IPO is Elin Electronics ltd IPO. They plan to use an IPO to raise $475 million. The price range for the issuance is $234 to $247 per equity share. Both the BSE and NSE will list the IPO.
When will the Elin Electronics ltd IPO begin?
The IPO will be available to QIB, NII, and retail investors starting on December 20, 2022.
What is the IPO Investors Portion for Elin Electronics?
Investors contribute 50% of the QIB, 15% of the NII, and 35% of the retail component.
How do I register for the Elin Electronics ltd IPO?
You can use your bank account to apply for the Elin Electronics IPO online through ASBA. You can also use your stock brokerage to submit an online ASBA application via UPI. You can apply by completing the offline form and submitting it through your stock brokers.
How do I apply for the Zerodha IPO of Elin Electronics ltd?
Log in to the Zerodha application or website console. Click on IPO under Portfolio. You will see “Elin Electronics” in the IPO Name. Select the “Bid” button. Enter the Price, Quantity, and UPI ID. submit your IPO application. Go to your BHIM app or UPI app on Net Banking now to approve the mandate.
How do I use Upstox to apply for the Elin Electronics ltd IPO’?
Use your login information to access the Upstox application. Decide on the IPO. You will see “Elin Electronics” in the IPO Name. Select the “Bid” button. Verify the application. Go to your BHIM app or UPI app on Net Banking now to approve the mandate.
How do I use Paytm Money to apply for the Elin Electronics IPO?
Use your login information to access the Paytm Money Application. Decide on the IPO. You will see “Elin Electronics” in the IPO Name. Select the “Bid” button. Verify the application. Go to your BHIM app or UPI app on Net Banking now to approve the mandate.
What is the IPO size of Elin Electronics?
The size of Elin Electronics’ IPO is 475 crores.
What is the IPO Price Band for Elin Electronics?
The Elin Electronics IPO Price Band is from $234 to $247.
What are the minimum and maximum lot sizes for the Elin Electronics IPO?
The minimum and maximum bids are 60 shares for 14,820 and 780 shares for 192,660 respectively.
What is the date of the Elin Electronics IPO allocation?
The date of the Elin Electronics IPO allocation is December 27, 2022.
What is the Elin Electronics IPO listing date?
The IPO listing date for Elin Electronics is December 30, 2022. Both the BSE and NSE will list the IPO.
