Elin Electronics IPO Analysis @ Chanakyanipothi.com the Oldest & the most Trusted Investment Website. Operational since 8th December 1999, this is the Only Investment Platform in India, which has successfully completed 23 Years
Elin Electronics IPO Listing Estimate & actual listing: Since the oversubscription was not impressive and sharp decline in grey market fancy, the IPO is expected to list at marginal discount. However, the business model is very strong. So accumulate some shares on listing and hold them for 6 to 9 months. The scrip Listed at Rs244 (Rs.3 discount)
Elin Electronics IPO Guidance: IPO size is very small and that for NII is too small (just Rs. 75.21Cr) so huge oversubscription is natural. Upper Price Band/last EPS: 25.76 & Upper offer price/Book Value Ratio 3.33 indicate very attractive valuation as compared to peer companies, yet the fancy in the grey market is not impressive. The current grey market premium is Rs. 45, indicating probability of very small returns on listing. However, if you are long term investor, do apply in this IPO. It is expected to fetch strong return in 9 months post listing.
Elin Electronics Grey Market News Today #
GMP Rs. (-)5
Elin Electronics subscription Status
# On 22 December 2022 @ 5.00 pm (Closed)
QIB : 4059824 Shares, 4.51T
Big NII : 2029912 Shares, 2.99T
SmallNII: 1014957 Shares, 3.89T
RII : 7104693 Shares, 2.20T
Total : 14209386 Shares, 3.09T
Elin Electronics Company Details
Elin Electronics is a leading electronics manufacturing services manufacturer of end-to end product solutions for major brands of lighting, fans, and small/ kitchen appliances in India, and are one of the largest fractional horsepower motors manufacturers in India. Based on its overall market, it is projected to be the largest players in this category, with a market share of 12 % in Fiscal 2021. In addition, it is one of the key players in LED lighting and flashlight with EMS market share of approximately 7% in Fiscal 2021, and is also one of the key players in small appliances vertical with EMS market share of 10.7% in Fiscal 2021.
Elin Electronics manufactures and assembles a wide array of products and provide end-to-end product solutions. It serves under both OEM and original design manufacturer (“ODM”) business models. Under the OEM model, it manufactures and supplys products basis designs developed by its customers, who then further distribute these products under their own brands. Under the ODM model, in addition to manufacturing, it conceptualizes and designs the products which are then marketed to its customers’ prospective customers under their brands. It has developed ODM
capabilities with respect to lighting products and small appliances.
Its key diversified 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. In addition to its EMS offerings, it also manufactures medical diagnostic cartridges for use in diagnostic
devices, and plastic moulded and sheet metal parts and components, largely for customers in the auto ancillary and consumer durables sectors. It manufactures and sells fractional horsepower motors in its own brand name “Elin”.
Its key customers by business verticals include:
• LED lighting, fans and switches: Signify Innovations and Eveready.
• Small appliances: Philips, Bosch, Faber, Panasonic and Usha.
• Fractional horsepower motors: Havells, Bosch, Faber, Panasonic, Preethi (owned by Philips), Groupe SEB (Maharaja brand) and Usha.
• Medical diagnostic cartridges: Molbio Diagnostics Private Limited; and
• Moulded and sheet metal parts and components: Denso and IFB.
For more information, click www.elinindia.com
The Promoters of Elin Electronics
Mangi Lall Sethia, Kamal Sethia, Kishore Sethia, Gaurav Sethia, Sanjeev Sethia, Sumit Sethia, Suman Sethia, Vasudha Sethia and Vinay Kumar Sethia
Elin Electronics IPO Main Objects
The Offer comprises the Fresh Issue by the Company and an Offer for Sale by the Selling Shareholders.
The Company proposes to utilize the Net Proceeds of the Fresh Issue towards funding the following objects:
1. Repayment/ prepayment, in full or part, of certain borrowings availed by the Company.
2. Funding capital expenditure towards upgrading and expanding its existing facilities at (i) Ghaziabad, Uttar Pradesh and (ii) Verna, Goa.
Elin Electronics IPO Details
IPO opens on 20 December 2022
IPO closes on 22 December 2022
Issue Type: Book Built Issue IPO
Issue: 19230769 Shares /Rs 475 Crore
* Fresh Issue of 7085020 Sh/ Rs.175 Cr
* Offer for Sale Up to 12145749 Sh/ Rs.300 Cr
Face Value per share: Rs. 5
Elin Electronics IPO Price Band Per Equity Share: Rs. 234-247
Elin Electronics IPO Retail Lot Size 60 Shares
Elin Electronics Listing will at BSE, NSE
Shares offered to
QIB (50%) 9615385 Shares = Rs 237.50 Cr
NII (15%) 2884615 Shares = Rs 71.25 Cr
RII (35%) 6730769 Shares = Rs 166.25 Cr
Lot size: 60 Shares = 118079 Forms
How much Shares to Apply?
Min Retail Application 60 Shares Rs. 14820
Max Retail Application 780 Sh Rs. 192660
Small HNI (Min) Application 840 Sh Rs. 207480
Small HNI (Max) Application 4020 Sh Rs. 992940
Big HNI Application 4080 Sh Rs. 1007760
Elin Electronics IPO Tentative timetable
IPO opens on 20 December 2022
IPO closes on 22 December 2022
IPO Allotment on 27 December 2022
Unblocking of ASBA 28 December 2022
Credit of Shares 29 December 2022
Listing on 30 December 2022
Elin Electronics IPO Financial & Analytical Ratios
Earnings per Share 2019-20 Rs 6.73
Earnings per Share 2020-21 Rs 8.53
Earnings per Share 2021-22 6M Rs 9.59
Return on Net Worth: 19-20 12.07%
Return on Net Worth: 20-21: 13.29%
Return on Net Worth: 21-22: 12.92%
Book Value of the Share as on 31.3.2022 Rs 74.21
Book Value of the Share as on 30.6.2022 Rs 78.39
Equity Shares prior to the IPO: 42,574,200 Shares
Upper Price Band/last EPS: 25.76
Upper offer price/Book Value Ratio 3.33
Elin Electronics IPO Peer Comparison:
Dixon Technologies @ PE Multiple of 140.44
Amber Enterprises @ PE Multiple of 62.82
Elin Electronics IPO Lead Managers
Axis Capital, JM Financials,
Registrar to Elin Electronics IPO
Kfin Technologies India Pvt ltd
Registered Office of Elin Electronics
143, Cotton Street, Kolkata – 700 007, West Bengal
Company Secretary & Compliance Officer: Avinash Chandra Karwa
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