Elin Electronics IPO sails through as issue fully subscribed on last day. GMP, key details

The Initial Public Offer (IPO) of electronics manufacturing services company Elin Electronics was fully subscribed on the last day of the subscription that closes on Thursday, December 22, 2022. The public issue has a price range fixed at ₹234-247 a share. As of 11:05 am on day 3, the issue has been subscribed 1.07x with retail category booked 1.48x, NIIs 1.5x, and QIBs bid 0.01 times, BSE data showed.

As per market observers, Elin Electronics shares are commanding a premium (GMP) of ₹22 in the grey market today. The shares of the company are expected to make its market debut on stock exchanges next week on Friday, December 30, 2022. 

Elin Electronics IPO consists of a fresh issue of up to ₹175 crore and an offer for sale (OFS) of up to ₹300 crore, aggregating up to ₹475 crore.

“Elin caters to its customers through a diversified product portfolio. This has not only helped the company to gain market share over the years but has also aided in gaining wallet share of existing customers. As a result, the revenue has grown at 18% CAGR in FY20-22. Elin has maintained its EBITDA margin in the range of 7-8% over FY20-22 supported by cost control measures, addition of new product categories and increasing focus on high margin ODM business. In addition, PAT has grown at a CAGR of 19% in FY20-22 supported by higher EBITDA. We assign SUBSCRIBE rating to the IPO,” said ICICI Securities.

Elin Electronics, a flagship company of Elin Group, was established in 1969. Delhi-based Elin is a manufacturer of end-to-end product solutions for major brands of lighting, fans, and small kitchen appliances, and a leading fractional horsepower motors manufacturer in the country.

“Elin Electronics Limited's (EEL) presence in product segments with growing demand, marquee customer base and continuous focus on efficiency and productivity has enabled to deliver consistent and strong financial performance. It has a strong balance sheet with net worth of Rs. 3,201.49 million as of September 30, 2022 and has been able to maintain a low debt position.. Its strong operational and financial performance will allow it to take advantage of the growth opportunities in the OEM and ODM industry in India,” said HDFC Securities.

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