Elin Electronics Limited 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 has received bids of 1,34,54,580 shares against the offered 1,42,09,386 equity shares, at a price band of ₹234-247, according to the data available on the stock exchanges.
Overall the issue was subscribed 0.95 times on the second day of bidding.
Retail Portion was subscribed 1.33 times. Non-Institutional segment was subscribed 1.29 times. Qualified Institutional buyer portion was subscribed 0.01 times. The issue kicked off for subscription on Tuesday, December 20, and will close on Thursday, December 22, 2022.
A day prior to the Issue opening, Elin Electronics Ltd raised Rs 142.49 crore from eight anchor investors. Foreign Investors who participated in the anchor book were Pinebridge and Kotak Offshore. Domestic Institutions who participated in the anchor were SBI Mutual Fund, SBI AIF, Kotak Mahindra Mutual Fund, SBI Life Insurance, Aditya Birla Sun Life Insurance and PGIM India Trustee.
Broking houses like Choice Broking, Reliance Securities, Hem Securities, and Canara Bank Securities have given a "Subscribe" rating to the issue.
The said brokerages have collectively stated that has established market position in key verticals including leadership in fractional horsepower motors with diversified products resulting in a de-risked business model. Also, company's entrenched relationships with a marquee customer base & high degree of backward integration resulting in higher efficiencies, enhanced quality of products and customer retention capability. Along with this, company's consistent and strong track record of financial performance is making this issue attractive. In comparison to its peers, the issue is available of relatively attractive valuation.
The company has been able to maintain its EBITDA margin in the range of 7-8%. Although, the company's clients' concentration is reducing, it still seems to be a concern despite of its presence in wide array of products.
Axis Capital Limited, and JM Financial Limited are the book running lead managers for the issue, while KFin Technologies Private Limited is the registrar. The equity shares are proposed to be listed on BSE and NSE.