Elin Electronics IPO

Elin Electronics Limited is among India’s biggest fractional horsepower motor producers and a renowned electronics manufacturing services (“EMS”) maker of end-to-end product offerings for top brands of lighting, fans, and small/kitchen appliances. Elin Electronics IPO will hit the stock market in 20 December 2022.

About Elin Electronics

Based on their overall market, they are expected to be the biggest players in this sector in Fiscal 2021, with a market share of 12%.

Furthermore, with an EMS market share of about 7% in Fiscal 2021, they are among the leading companies in LED lighting and flashlights, as well as one of the leading players in the small appliances vertical, with an EMS market share of 10.7% in Fiscal 2021.

They produce and assemble a wide range of items and offer complete product solutions. Original equipment manufacturer (OEM) and original design manufacturer (ODM) business types are both adopted by them.

Models

• Under the OEM model, they manufacture and supply products based on designs created by their clients, who then sell them under their own brands.
• In the ODM model, they envision and create items in addition to manufacturing them, which are subsequently marketed to their customers’ targeted buyers under their trademarks.

Products

In EMS, they have a diverse product portfolio that includes:

• LED lighting, fans, and switches, such as ceiling, fresh air, and TPW fans, as well as modular switches and plugs.
• Hair dryers and straighteners, as well as dry and steam irons, toasters, hand blenders, mixer grinders, and hair dryers.
• Fractional horsepower motors, which are found in mixer grinders, hand blenders, wet grinders, chimneys, air conditioners, heat convectors, and TPW fans, among other applications.
• Miscellaneous items such as air conditioner terminal blocks, stainless steel blades for mixer grinders, die casting, and radio sets.

Note:

They also make medical diagnostic cartridges for use in diagnostic instruments, as well as plastic moulded and sheet metal parts and components, primarily for customers in the auto auxiliary and consumer durables industries.

Clients

They provide cutting-edge solutions to their customers, which include some of the world’s most well-known consumer electronics firms.

Their comprehensive solution portfolio includes worldwide sourcing, component and part fabrication, captive manufacturing and assembly, quality testing, packaging, and logistics assistance, allowing them to collaborate with India’s premier consumer electronics and appliance companies.

Names of Clients

The following are some of their most important customers, organised by business vertical:

• Signify Innovations and Eveready : LED lighting, fans, and switches.
• Philips, Bosch, Faber, Panasonic, and Usha : small appliances.
• Havells, Bosch, Faber, Panasonic, Preethi (acquired by Philips), Groupe SEB (Maharaja brand), and Usha : fractional horsepower motors.
• Molbio Diagnostics Private Limited : medical diagnostic cartridges.
• Denso and IFB : moulded and sheet metal parts and components.

Elin Electronics IPO

Elin Electronics Limited, headquartered in Kolkata has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 760 crores on 17 November 2021.

The offer includes fresh issue of 175 crores and there is offer for sale (OFS) of 585 crores by the promoters mentioned in the DRHP. They are not looking for any pre-IPO placement in this issue.

They are got approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
	30-Sep-21	31-Mar-21	31-Mar-20	31-Mar-19
Total Assets	552.37	508.31	387.63	397.73
Total Revenue	518.92	864.90	786.37	829.74
Profit After Tax	19.33	34.86	27.49	29.07

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	8.53	8.53	3
Financial Year 2020	6.73	6.73	2
Financial Year 2019	7.12	7.12	1
Weighted Average	7.70	7.70
30 Sep. 2021	4.73	4.73

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

They feel the following are some of the qualitative aspects that go into determining the Offer Price:

• In critical sectors, such as fractional horsepower motors, the company has a strong market position.
• Broad products result in a company plan that is less risky.
• Relationships with a prestigious customer base.
• High levels of backward integration lead to increased efficiencies, improved product quality, and customer retention.
• Financial performance that is consistent and powerful.

Elin Electronics IPO Peer Comparison

S. No.	Face Value	Company Name	PE
1	2	Dixon Technologies (India) Limited	187.20
2	10	Amber Enterprises India Limited	134.02

Note:

1. The closing price of these equity shares on October 27, 2021 from the BSE portal.
2. All financial data for listed industry peers is consolidated (unless otherwise stated) and derived from the respective firm’s annual results/reports for the fiscal year ended March 31, 2021.

Elin Electronics IPO Details

IPO Opening Date	20 December 2022
IPO Closing Date	22 December 2022
Issue Type	Book Building
Face Value	5 per share
IPO Price	234 to 247 per equity share
Market Lot	60
Min Amount	14,820
Listing At	BSE, NSE
Issue Size	760 Crores
Fresh Issue	175 Crores
Offer for Sale	585 Crores

Elin Electronics IPO Date

Elin Electronics IPO opening date is 20 December 2022, and the closing date is 22 December 2022. The Elin Electronics issue may list in 30 December 2022.

IPO Opening Date	20 December 2022
IPO Closing Date	22 December 2022
Basis of Allotment Date	28 December 2022
Initiation of Refunds	29 December 2022
Credit of Shares to Demat Account	29 December 2022
IPO Listing Date	30 December 2022

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly  equivalent
Non Institutional Investor	15	Roughly equivalent
Retail	35	Minimum level of 1 lot, based on availability, for every shareholder.

Elin Electronics IPO Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Elin Electronics IPO.

Elin Electronics IPO GMP

Elin Electronics IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
December 2022
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Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Elin Electronics IPO Review

Elin Electronics IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Elin Electronics IPO is good or bad.

Elin Electronics IPO Risk

• They rely heavily on a few major customers for a significant amount of their revenue.
• A pandemic of COVID-19, or a related public health threat, might have a negative impact on their business.
• Their customers do not provide them with firm and long-term volume buying agreements.
• The contracts they sign into determine the nature of their business and the outcomes of their activities.
• Their operating performance may vary from quarter to quarter or be affected by seasonality, which could have an impact on their business.
• They might not be able to make the most of their backward integration to help them grow and assist their company.

Other Threats

• A few of their corporate records relating to their Company’s allotments, as well as their Promoters’ transfers and acquisitions of Equity Shares, are not detectable.
• They may face financial and reputational risks as a result of product quality and liability issues, which could harm their business.
• Their manufacturing capacity may not exactly match their production demand, which could have an impact on their operating performance.
• Their manufacturing facilities are located on land parcels that they own both on a leasehold and freehold basis.
• Their incapacity to manage their diverse businesses could have a negative impact on their company.

Journey

They’ve worked in the EMS industry for decades. Since their inception, they’ve grown their product portfolio, client base, and technological capabilities in product design and manufacture.

They began producing tape deck mechanisms for use in audio cassette players in 1973. As a backward integration, we began manufacturing motors in 1977. They began manufacturing tiny products in 1999.

After 2000

They started making LED lighting in 2001 and then moved on to making flashlights in 2007. In the year 2019, they began producing fans.

The production of medical diagnostic cartridges, which they started in 2019, is the most recent product sector that they have entered.

They’ve also made tape deck mechanisms, motors, and compact disc mechanisms in the past, in partnership with well-known global corporations.

Production

They have three production sites in Ghaziabad, Baddi, and Verna, all of which are ideally positioned. Their large-scale setup featured 149 moulding machines and 105 power presses as of September 30, 2021, allowing them to achieve efficiencies and economies of scale.

Their contemporary, state-of-the-art production facilities are furnished with high machinery, assembly lines, and complete power backup for 100 percent capacity, allowing them to satisfy their customers’ quality standards on time.

They have backward integrated their primary manufacturing processes in order to deliver end-to-end product solutions, gain better control over their supply chain, and increase profitability.

R&D

Since 1992, they’ve had a centralised R&D centre in Ghaziabad (Uttar Pradesh) that has been recognised by the Department of Scientific and Industrial Research, Ministry of Science and Technology, Government of India (“DSIR”).

It is trying to focus on OEM and ODM model research and development, such as concept sketching, design refinement, generating additional features, and testing.

This allows them to meet the different needs of its customers, launch new and creative goods, enhance old products with emerging technology, and reduce costs across the board through value analysis and value engineering.

Their R&D team had 136 personnel as of September 30, 2021, comprising engineers, designers, and other workers.

Elin Electronics IPO Brokerage views

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Elin Electronics IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
December 2022	1
December 2022	2
December 2022	3

Promoters

• Mangi Lall Sethia
• Kamal Sethia
• Kishore Sethia
• Gaurav Sethia
• Sanjeev Sethia
• Sumit Sethia
• Suman Sethia
• Vasudha Sethia
• Vinay Kumar Sethia

Promoters’s Holding

Pre Issue Share Holding	38.69%
Post Issue Share Holding

Elin Electronics Prospectus