Elin Electronics Limited | Globe Capital
Elin Electronics Limited
Closed
Price Band
Rs. 234 to 247 per share
IPO Issue Period
Dec 20, 2022 to Dec 22, 2022
Issue Size
475.00 Cr
Face value
Rs. 5
Fresh issue
175.00 Cr
Offer for sale
300.00 Cr.
Minimum Shares for Retail
60 Shares
Listing on
NSE, BSE
Issue Type
Book Building
Registrar to the Issue
KFin Technologies Limited
Tentative Listing Date
Dec 30, 2022
QIB
Not More than 50% of the offer
NII
Not less than 15% of the offer
Retail
Not less than 35% of the offer

Axis Capital Limited
JM Financial Limited

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

Elin Electronics Limited manufactures and assembles a wide array of products and provides end-to-end product solutions. The company serve under both original equipment manufacturer (“OEM”) and original design manufacturer (“ODM”) business models.

The company’s diversified product portfolio in EMS includes (i) LED lighting, fans and switches including lighting products, ceiling, fresh air and TPW fans, and modular switches and sockets, (ii) small appliances such as dry and steam irons, toasters, hand blenders, mixer grinders, hair dryer and hair straightener; (iii) fractional horsepower motors, which is used in mixer grinder, hand blender, wet grinder, chimney, air conditioner, heat convector, TPW fans etc.; and (iv) other miscellaneous products.

The company has three manufacturing facilities which are strategically located in Ghaziabad (Uttar Pradesh), Baddi (Himachal Pradesh) and Verna (Goa).

The company also has a centralized R&D centre in Ghaziabad (Uttar Pradesh), focusing on the research and development of all aspects of OEM and ODM models including concept sketching, design refinement, generating optional features and testing.

In Fiscals 2020, 2021 and 2022 and the seven-month period ended October 31, 2022, the company catered to 327, 387, 342 and 297 customers, respectively.

The company’s revenue from operations in Fiscals 2020, 2021 and 2022 and the six-month period ended September 30, 2022, was Rs 7,855.84 million, Rs 8,623.78 million, Rs 10,937.54 million and Rs 6,044.57 million.

For year/ period ended ( in Cr.)

H1FY22 FY21 FY20
Total Revenue 1093.75 862.38 785.58
Profit After Tax 39.15 34.86 27.49
EPS 9.59 8.53 6.73
OPM (%) 7.31% 8.00% 7.16%
PATM(%) 3.58% 4.03% 3.50%

 

  • Established market position in key verticals including leadership in fractional horsepower motors
  • Diversified products resulting in a de-risked business model
  • Entrenched relationships with a marquee customer base
  • High degree of backward integration resulting in higher efficiencies, enhanced quality of products and customer retention capability
  • Consistent and strong track record of financial performance
  1. Repayment/ prepayment, in full or part, of certain borrowings availed by the Company.
  2. Funding capital expenditure towards upgrading and expanding our existing facilities at (i) Ghaziabad, Uttar Pradesh, and (ii) Verna, Goa. & General corporate purposes

Based on its current financials the issue is fully priced but the Company looks attractive against listed peers. Hence, Investor may invest for the medium to long-term rewards.

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