Draft documents were submitted to the SEBI by Elin Electronics Ltd. to raise Rs. 475 crores through an IPO. An OFS of up to Rs. 300 crores and a fresh issue of shares worth Rs.175 crores each comprise the IPO.
The promoters and current stockholders will participate in OFS. It includes shares valued up to Rs. 32,10 crore from Kamal Sethia, Rs. 52,50 crore from Kishore Sethia, Rs. 47,40 crore from Gaurav Sethia, Rs. 12,20 crore from Sanjeev Sethia, Rs. 15,60 crore from Vasudha Sethia, and Rs. 9,10 crore from Vinay Kumar Sethia.
The issue’s leading managers are Axis Capital and JM Financial.
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Listing at NSE, BSE
| Opening Date | Closing Date |
| Dec 20, 2022 | Dec 20, 2022 |
| Price Band | Issue Size |
| ₹234 – ₹247 per Equity Share | 475 Cr |
| Face Value | Market Lot |
| ₹5 per equity share | 60 Shares |
Elin Electronics IPO Lot Size
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 60 | ₹14,820 |
| Retail (Max) | 13 | 780 | ₹192,660 |
| S-HNI (Min) | 14 | 840 | ₹207,480 |
| B-HNI (Min) | 68 | 4080 | ₹1007760 |
| IPO Open Date | Dec 20, 2022 |
|---|---|
| IPO Close Date | Dec 22, 2022 |
| Allotment Date | Dec 27, 2022 |
| Initiation Of Refunds | Dec 28, 2022 |
| Credit Of Shares To Demat Account | Dec 29, 2022 |
| IPO Listing Date | Dec 30, 2022 |
| UPI Mandate Expiry Date | Dec 22, 2022 |
About Elin Electronics Limited-
One of India’s biggest makers of fractional horsepower motors, the firm is a leading electronics manufacturing services provider of end-to-end product solutions.
Elin Electronics Limited manufactures and assembles various products and provides end-to-end product solutions. The company serves under both original equipment manufacturer (“OEM”) and original design manufacturer (“ODM”) business models.
The company’s diversified product portfolio in EMS includes:
1)LED lighting, fans, switches, lighting products, ceiling, fresh air, TPW fans, and modular switches and sockets.
2)Small appliances include dry and steam irons, toasters, hand blenders, mixer grinders, hair dryers, and hair straighteners.
3)Fractional horsepower motors are used in mixer grinders, hand blenders, wet grinders, chimneys, air conditioner, heat convectors, TPW fans, etc.
4)Other miscellaneous products.
The Indian electronics manufacturing services market is expected to reach a value of Rs. 9,96,300 crores by 2026, with a CAGR of 30.3 percent, up from a projected value of Rs. 2,65,400 crores in 2021. In 2021, Elin Electronics had a 12% market share. It is one of the major companies in the LED lighting and flashlight sectors, with an EMS market share of 7%, and in the small appliances sector, with an EMS market share of 10.7% in 2021. The company has three manufacturing facilities, which are strategically located in Verna(Goa), Baddi (Himachal Pradesh), and Ghaziabad(Uttar Pradesh). The large-scale setup, which permits bringing efficiency and economies of scale, consists of 149 units of molding machines and 105 units of power presses.
Elin Electronics Limited IPO Objectives-
The Company proposes to utilize the Net Proceeds of the Fresh Issue towards funding the following objects:
• Repayment/ prepayment, in full or part, of certain borrowings availed by the company.
• Funding capital expenditure towards upgrading and expanding our existing facilities at (i) Ghaziabad, Uttar Pradesh, and (ii) Verna, Goa.
• General corporate purposes (collectively, referred to herein as the “Objects”).
Why should you invest in the Elin Electronics Limited IPO?
- The global electronics industry was valued at USD 2,288 billion in 2020. As per Frost & Sullivan’s analysis, the industry is expected to grow at a CAGR of 5.2 % to reach USD 2,955 billion by 2025.
- The electronics industry is moving from Original Equipment Manufacturing (OEM) to Original Design Manufacturing (ODM). The share of the ODM business is likely to increase from 10% in 2020 to 13% in 2025.
- The total electronics market in India is valued at INR 8,863 Billion (USD 120 Billion) in FY21, which is expected to grow at a CAGR of 22.7% to reach INR 24,633 Billion (USD 333 Billion) in FY26.
Particulars (In Rs. Crores) | FY21 | FY20 | FY19 |
|---|---|---|---|
Revenue | 862.38 | 785.58 | 828.55 |
EBITDA | 69 | 56.24 | 58.214 |
PAT | 34.87 | 27.49 | 29.07 |
EPS (basic in Rs.) | 8.53 | 6.73 | 7.12 |
RoNW% | 13.29% | 12.07% | 14.61% |
ROCE% | 18.55% | 17.08% | 20.86% |
Total Assets | 508.31 | 387.63 | 397.73 |
Share Capital | 6.81 | 6.81 | 4.96 |
Total Borrowings | 113.77 | 69.89 | 86.64 |
Total Assets | 508.31 | 387.63 | 397.73 |
Net cash inflow from operating activities | -33.64 | 76.81 | 28.32 |
Net Cash flow from investing activities | -4.95 | -42.42 | -31.84 |
Net Cash flow from financing activities | 34.19 | -28.44 | -3.72 |
How to apply for Elin Electronics Limited IPO?
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Elin Electronics Limited Noteworthy Highlights:
- Elin Electronics Limited 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. It is one of the largest fractional horsepower motors manufacturers in India.
- Based on the overall market, they are projected to be the largest players in this category, with a market share of 12 % in Fiscal 2021.
- Elin Electronics Limited is one of the key players in LED lighting and flashlight, with an electronics manufacturing service market share of approximately 7% in Fiscal 2021.
- Finally, they are also one of the key players in the small appliances vertical, with an electronics manufacturing service market share of 10.7% in Fiscal 2021.
The Brand’s Pros & Cons:
| Pros | Cons |
|---|---|
| Has a well-established and firm grip on market positions in important industries, including leadership in motors with fractional horsepower. | There is no certainty that the company will be able to keep doing business with its (new or current) clients once contracts are completed; this might have a negative impact on profitability and operational outcomes. |
| A company approach that is less risky as a consequence of product diversification. | The business depends on the production facilities. Therefore, any interruption to their ongoing activities would significantly harm their business and profitability. |
| Established connections with a significant consumer base. | Reliance on outside suppliers might result in timetable delays and increased input costs if the company does not make the best use of its skilled backward integration to advance and support the business (on short notice). |
| High levels of backward integration lead to improved productivity, product quality, and client retention. | The EMS sector is quickly evolving and changing. The business might not be able to stay up with the most recent trends or incorporate new ODM capabilities and technologies. |
| A solid track record of financial achievement that is consistent. | Technical knowledge could not be sufficiently shielded by intellectual property but rather solely by secrecy, which can’t keep information secret for very long and could cause the company to lose its competitive edge. |
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