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Last listing of 2022 fails to cheer Street, debuts at a discount to IPO price

market | Dec 30, 2022 7:46 AM IST

Last listing of 2022 fails to cheer Street, debuts at a discount to IPO price

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The Rs 475 crore IPO — revised from earlier Rs 760 crore — comprised of fresh issue of Rs 175 crore as well as an offer for sale (OFS) of not more than Rs 300 crore.

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The shares of Elin Electronics made a weak debut on the stock exchanges NSE and BSE on Friday i.e. December 30. On BSE, Elin Electronics listed at Rs 243 apiece against the issue price of Rs 234-247. The stock started its trading journey at Rs 244 apiece on NSE — a 1.2 percent discount to the issue price.
The electronics manufacturing services company's Rs 475 crore initial public offering opened for subscription on December 20.  The issue closed on December 22. Elin Electronics has fixed the price band between Rs 234 and Rs 247 apiece.
Ahead of its IPO, the company has raised Rs 142 crore through anchor investors. A total of 15 investors, including SBI Mutual Fund, Kotak Mahindra Trustee, SBI Life Insurance, Aditya Birla Sun Life Trustee, and PGIM India, invested in the IPO.
The Rs 475 crore IPO — revised from earlier Rs 760 crore — comprised of fresh issue of Rs 175 crore as well as an offer for sale (OFS) of not more than Rs 300 crore. JM Financial Ltd and Axis Capital Ltd were the book runners for the offer, while KFin Tech was the appointed registrar.
Elin Electronics MD Kamal Sethia with others ringing the BSE Bell to mark the listing on Dec 30
Sanjeev Sethia, Director and Akash Sethia , Head of Strategy, Elin Electronics, in an interaction with CNBC-TV18 said, "As far as IPO money is concerned, we will become debt free. So, we will become a debt free company."
The company intends to utilise Rs 88 crore from the IPO proceeds to repay debt. Another Rs 37.8 crore will be used in capex to upgrade and expand the company's existing facilities at Ghaziabad, Uttar Pradesh and Goa. The remaining funds will be used for general corporate purposes.
"Our plan, going forward, includes expanding our existing product verticals, adding subcategories to that. So probably our fastest growing revenue wise division would be the new fans division where we intend to launch a lot of new models," Sethia told CNBC-TV18.
He added that the company is planning to tap in e-retail segment in small appliances business. “In our small appliance division, we intend to increase our sale of mixer grinders, irons, and we want to tap the e-retail business in this category because that is another fast growing category.”
The Delhi-based Elin 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, and leading fractional horsepower motors manufacturers in India with a 12 percent market share in the financial year 2021.
FY20FY21FY22
Revenue (Rs crore)7868621,094
EBITDA Margin (%)7.687.3
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