Elin Electronics leading EMS company received Sebi Green Signal on 23 February for its IPO

Lets study  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 utilise 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
Issue Type: Book Built Issue IPO
Issue : up to ? Shares /Rs 760 Crore
* Fresh Issue of (?) Sh/ Rs.185 Cr
* Offer for Sale Up to (?) Sh/ Rs.585 Cr

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 4.73
Return on Net Worth: 19-20 14.33 %
Return on Net Worth: 20-21: 17.67 %
Return on Net Worth: 20-21 6M : ? %
Book Value of the Share as on 31.3.2021 Rs 64.22
Book Value of the Share as on 30.6.2021 Rs 69.16
Equity Shares prior to the IPO : 42,574,200 Shares
Equity Shares after the IPO : (?) Shares

Elin Electronics IPO Peer Comparison:
Dixon Technologies @ PE Multiple of 187.20
Amber Enterprises @ PE Multiple of 134.02

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