Elin Electronics is expected to make its market debut on December 30.
The initial public offering (IPO) of Elin Electronics Limited (EEL) is set to launch on December 20, 2022, at a price band of ₹237-₹247 per share. The IPO will close for subscription on December 22, 2022.
The company intends to raise ₹475 crores, of which, ₹175 crores worth of shares will be raised via a fresh issue, and ₹300 crores via an offer for sale by promoters and shareholders. Promote₹ including Kamal Sethia, Suman Sethia, Kishore Sethia, Vasudha Sethia, Gaurav Sethia, Vinay Kumar Sethia and Sumit Sethia will reportedly sell shares worth ₹121.1 crore, whereas other shareholders will offload shares worth ₹178.89 crore.
Elin Electronics is expected to make its market debut on December 30 and has currently secured a grey market premium (GMP) of ₹30 per share. The company received SEBI’s approval for an IPO worth ₹760 crore in March this year. It had filed its preliminary papers in November last year.
Established in 1969, the company has consistently improved its revenue and profitability in the past three years. The company reported a profit after tax (PAT) at ₹39.15 crore with total revenue of ₹1,094.67 crore for FY22. It reported a PAT at ₹34.86 crore with a revenue of ₹864.9 crore for FY21.
The company manufactures and assembles a wide array of end-to-end product solutions for major brands of lighting, fans, and small kitchen appliances in India. It is one of the largest manufacturers of fractional horsepower motors in India. It has three manufacturing facilities, located in Ghaziabad, Uttar Pradesh, Baddi, Himachal Pradesh and Verna, Goa.
It intends to use the net proceeds raised from IPO worth ₹88 crore to pay off existing debt while ₹37.59 crore will be used for improving and expanding its existing plants at Ghaziabad in Uttar Pradesh and Verna in Goa.
