Elin Electronics IPO | Review

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Elin Electronics Limited has come up with an initial public offer (IPO). It will open on December 20-22 at Rs.234-247 a share. The IPO issue size is around Rs.475.00 crores. The minimum bid will be for 60 shares and in its multiples thereafter.

Overview

Elin Electronics Limited was incorporated in the year 1969. It is a leading electronics manufacturing services (“EMS”) manufacturer of end-to-end product solutions for major brands of lighting, fans, and small/ kitchen appliances in India. Also, it is one of the largest fractional horsepower motors manufacturers in India.

The company manufactures and assembles a wide array of products and provides end-to-end product solutions. It serves under both original equipment manufacturer (“OEM”) and original design manufacturer (“ODM”) business models. Under the OEM model, it manufactures and supplies products basis designs developed by 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 customers’ prospective customers under their brands.

Elin Electronics offers innovative solutions to its customers, which include leading international and national consumer electronics brands. Its comprehensive solution suite includes global sourcing, fabrication of components and parts, captive manufacturing and assembly, quality testing, packaging and logistics support.

Website – https://www.elinindia.com/

Promoters

Kamal Sethia – 5.24%	Kishore Sethia – 8.56%
Gaurav Sethia – 7.38%	Sanjeev Sethia – 2.15%
Sumit Sethia – 2.03%	Suman Sethia – 9.30%
Vinay Kumar Sethia – 1.49%	Vasudha Sethia – 2.54%

Promoter Holding

Pre-Issue Shareholding – 53.98%

Post-Issue Shareholding – 32.93%

Strength & Weakness

Strengths	Weaknesses
Leadership in fractional horsepower motors	Highly dependent on certain customers
Diversified products	Past profitability ratios have been low
Entrenched relationships with customers	To incur significant capital expenditure in the future
High degree of backward integration	Success dependent upon certain quality accreditations
Consistent track record of financial performance	No long-term purchase commitments from customers
Established market position in key verticals	Entered into related party transactions
Enhanced quality of products	Success is dependent on senior management

Products

Small Appliances	FPH Motors
LED Lighting	Flashlights
Fans	Medical Diagnostic Device

Customers

Signify	Philips
Havells	Eveready
Molbio	Panasonic
Usha	Bosch

Competitors

Dixon Technologies

Amber Enterprises

Company Financials

Year	Revenue (in Crore)	Profit (in Crore)
31-Mar-2020	786.37	27.49
31-Mar-2021	864.90	34.86
31-Mar-2022	1094.67	39.15
30-Jun-2022	604.74	20.67

Objects of Issue

1) The Selling Shareholders will be entitled to their respective portion of the proceeds of the Offer for Sale.

2) Repayment/ prepayment, in full or part, of certain borrowings availed by the Company.

3) Funding capital expenditure towards upgrading and expanding the company’s existing facilities at Ghaziabad, Uttar Pradesh, and Goa.

4) General corporate purposes.

Elin Electronics IPO Lot Size

Application	Lot	Shares	Amount
Retail (Min)	1	60	Rs.14,820
Retail (Max)	13	780	Rs.1,92,660
S-HNI (Min)	14	840	Rs.2,07,840
B-HNI (Max)	68	4,080	Rs.10,07,760

Elin Electronics IPO Details

IPO Opening Date	December 20, 2022
IPO Closing Date	December 22, 2022
Face Value	Rs.5 per Equity Share
IPO Price	Rs.234-247 per share
Market Lot	60 shares
Minimum Order Quantity	60 shares
Listing At	NSE, BSE
Fresh Issue	Rs.175.00 Crore
Offer for Sale	Rs.300.00 Crore
Issue Size	Up to Rs.475.00 Crore
QIB Shares Offered	50% of the offer
Retail Shares Offered	35% of the offer
NII/HNI Shares Offered	15% of the offer

Elin Electronics IPO Timetable

IPO Date	December 20-22, 2022
Allotment Date	December 27, 2022
Initiation of Refunds	December 28, 2022
Credit of share to Demat a/c	December 29, 2022
IPO Listing Date	December 30, 2022