Elin Electronics Limited is the latest company to join the IPO bandwagon and is engaged in the business of providing electronic manufacturing services (EMS). This IPO was open for subscription from 20th to 22nd December 2022.
Elin Electronics Ltd IPO was subscribed over 3 times as of December 22nd. The issue’s allotment is expected to be out on 27th December.
Here are all the essential details of Elin Electronics Limited IPO, including investment price band, allotment date, GMP, benefits, risks of investing in this IPO, and more.
The key details of the Elin Electronics Limited IPO are as under.
The size of the IPO and different categories of the issue are:
| Category | Details |
| IPO Opening Date | 20th December 2022 |
| IPO Closing Date | 22nd December 2022 |
| Listing | NSE, BSE |
| Issue Type | Book Built Issue IPO |
| Face Value of shares | Rs. 5 per share |
| IPO Price Band | Rs. 234 – Rs. 247 per share |
| IPO Size | Rs. 475 crores |
| Offer For Sale | Rs. 300 crores |
| Fresh Issue | Rs. 175 crores |
The important dates for the Elin Electronics Limited IPO are highlighted below:
| Event | Date |
| Opening date | 20th December 2022 |
| Closing Date | 22nd December 2022 |
| Allotment date | 27th December 2022 |
| Refund Date | 28th December 2022 |
| Share Credit Date | 29th December 2022 |
| Listing Date | 30th December 2022 |
Investors can subscribe to the shares of Elin Electronics Limited IPO in pre-defined lots. The details of the lot sizes for this IPO are mentioned below:
| Category | Details |
| Investment in lots (for retail investors) | Minimum – 1 lotMaximum – 13 lots |
| Shares | Minimum – 60Maximum – 780 |
| Investment amount | Minimum – Rs. 14,820Maximum – Rs. 1,92,660 |
The categories of eligible investors and their share in the IPO are tabled below:
| Category of Investor | Reservation Percentage |
| QIB (Qualified Institutional Buyers) | 50% |
| NII (Non-Institutional Bidders) | 15% |
| RII (Retail Individual Investors) | 35% |
The key objectives of the IPO are stated below:
Elin Electronics Limited is engaged in the business of providing electronic manufacturing services (EMS). This company was incorporated in 1969 and is one of the biggest names in fractional horsepower motors manufacturers in the country along with providing end-to-end product solutions to major brands for lighting, fans, and small kitchen appliances. Elin Electronics can be categorised under the OEM (Original equipment manufacturer) as well as ODM (Original Design Manufacturer) category of business.
The company has a diversified portfolio that has an array of products like
Elin Electronics Limited financials are given in the table below:
| Year | Total Assets (Rs. In crores) | Operating Revenue (Rs. In crores) | Profit after tax (Rs. In crores) | Basic EPS(Rs.) | Diluted EPS(Rs.) | RONW |
| Mar-2022 | 533 | 1,094 | 39 | 9.59 | 9.59 | 12.92% |
| Mar-2021 | 508 | 862 | 35 | 8.53 | 8.53 | 13.29% |
| Mar-2020 | 387 | 785 | 27 | 6.73 | 6.73 | 12.07% |
(Source: RHP)
Some of the key strengths of Elin Electronics Limited that investors can take note of are:
| Category | Details |
| Business model | Elin Electronics is an established name and has market leadership in the fractional horsepower motors.The huge range of products and the end-to-end solutions provided by the company ensure diversified revenues and the spreading of risk.The company enjoys strong relationships with a marquee customer baseIt also has the benefit of a high degree of backward integration that has yielded improved efficiencies, better product quality, and customer retention. |
| Financials | The company has shown strong financial performance over the past years consistently. |
| Promoters and Senior management | The company has the backing of experienced senior management |
Here are some of the risks that investors of Elin Electronics Limited IPO should know:
| Category | Details |
| Business viability and profitability | The company is highly capital intensive and has incurred huge capital expenditure in the past. The inability to get additional resources at this stage will lead to delay, reduction, or abandonment of the development and expansion plans. The company’s business and significant revenue prospects are highly dependent on certain customers and any loss or reduction in the same can be adverse for the company.The company may be incapable of meeting the production capacity to the production demand. |
| Competition | The company belongs to a highly competitive industry. |
| Litigations | The company is facing outstanding litigations against itself as well as against its promoter and subsidiary |
As of December 23rd 2022, the grey market premium for the shares of Elin Electronics Limited is approximately Rs. 2 as per market observers. This means the company’s shares commanded a marginal premium over the issue price.
Elin Electronics Limited IPO was subscribed almost 3 times on the final day of the bidding process. The company belongs to an organised and unorganised manufacturing sector with excessive competition from domestic and international players. The company is backed by strong financials even though it is quite small when compared to its listed peers. It boasts of having strong relationships with marquee customers which is vital to its growth and meeting future plans. Therefore, this IPO can be a good investment opportunity in the mid-term to the long-term investment portfolio.
Investors can invest in this IPO through the Fisdom app.
Dixon Technologies Limited and Amber Enterprises Limited are the listed peers of Elin Electronics and have a PAT margin of 1.78% and 2.65% respectively against 3.58% for Elin Electronics.
Elin Electronics has an operating revenue of Rs. 1,094 crores which stand at about one-tenth of the operating revenue of Dixon Technologies Limited.
Elin Electronics has a diversified range of products and is a market leader in the manufacturing of fractional horsepower motors. This gives it the advantage of spreading its risk through diverse business avenues. However, a substantial portion of the revenue is through marquee customers which may pose a risk in the event of loss of business from such sources.
Elin Electronics IPO size is Rs. 475 crores out of which Rs. 175 crores is in the form of fresh issue and the balance Rs. 300 crores is an offer for sale.
The lead managers of Elin Electronics IPO are Axis Capital Limited and JM Financial Limited.
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