Elin Electronics IPO ends with strong subscription

Published on Dec 23, 2022 18:30

The initial public offer (IPO) of Elin Electronics received bids for 4,39,67,880 shares as against 1,42,09,386 shares on offer. The issue was subscribed 3.09 times.

The Qualified Institutional Buyers (QIBs) category was subscribed 4.51 times. The Retail Individual Investors (RIIs) category was subscribed 3.29 times. The Non-Institutional Investors (NIIs) category was subscribed 2.20 times.

The issue opened for bidding on 20 December 2022 and it closed on 22 December 2022. The price band of the IPO was fixed at Rs 234-247 per share.

The IPO comprised of a fresh issue of upto Rs 175 crore, and an offer for sale (OFS) up to Rs 300 crore by existing shareholders.

Of the net proceeds of the fresh issue, about Rs 88 crore will be used for repayment and prepayment, in full or part, of certain borrowings availed by the company, Rs 37.589 crore will be used for funding capital expenditure to upgrade and expand existing facilities at Ghaziabad (Rs 28.934 crore) and Goa (Rs 8.655 crore) and general corporate purposes.

Ahead of the IPO, Elin Electronics, on 19 December 2022, raised Rs 142.49 crore from anchor investors. The board allotted 57,69,223 shares at Rs 247 per share to 15 anchor investors.

Elin Electronics is a leading player in electronics manufacturing services offering end-to-end product solutions for major brands of lighting, fans, and small and kitchen appliances in India. The company is one of the largest fractional horsepower motors manufacturers in India and sells fractional horsepower motors under its own brand name Elin.

The company reported a net profit of Rs 20.67 crore and sales of Rs 604.46 crore in the six months ended 30 September 2022.