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All that you should know about the Company before applying for the IPO.

December 16, 2022     

The public issue of equity shares of ELIN ELECTRONICS LIMITED will open for subscription on December 20, 2022 and closes on December 22, 2022. It is expected to list on the stock exchanges on December 30, 2022. What does the company do? Why is the company going public? Who are its key competitors? Its key strengths, and lot more. Here’s everything that you want to know about the company to analyse the IPO.

Company Profile

Incorporated in 1982, the company (Elin) is a leading electronics manufacturing services manufacturer of end-to end products 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 manufactures and assemble a wide array of products and provides end-to-end product solutions. The key business verticals include LED lighting, fans and switches, small appliances (such as dry and steam irons, toasters, hand blenders, mixer grinders, hair dryer and hair straightener), Fractional horsepower motors (which are used in home appliances), Medical diagnostic cartridges and Moulded and sheet metal parts and components.

Elin also manufactures medical diagnostic cartridges for use in diagnostic devices, and plastic moulded and sheet metal parts and components, largely for customers in the auto ancillary and consumer durables sec-tors. They manufacture and sell fractional horsepower motors in their own brand name “Elin”.

Elin serves under two business models:

  • (i) Original Equipment Manufacturer (OEM) – Under which they manufacture and supply products basis de-signs developed by their customers, who then further distribute these products under their own brands.
  • (ii) Original Design Manufacturer (ODM) – Under this Elin conceptualize and design the products which are then marketed to their customers’ prospective customers under their brands. They have developed ODM capabilities with respect to lighting products and small appliances.

Elin has 3 manufacturing facilities which are strategically located in Ghaziabad (Uttar Pradesh), Baddi (Hima-chal Pradesh) and Verna (Goa). They also have a centralized R&D centre in Ghaziabad and their R&D team alone consisted of 171 employees, including engineers, designers and other workers. Some of their key cus-tomers are Eveready, Philips, Bosch, Faber, Panasonic, Usha, and IFB.

Who are the Promoters of the Company?

Mangi Lall Sethia, Kamal Sethia, Kishore Sethia, Gaurav Sethia, Sanjeev Sethia, Sumit Sethia, Suman Sethia, Vasudha Sethia and Vinay Kumar Sethia

Positives about the Company

  • 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

Who are its listed peers?

  • Dixon Technologies (India) Limited
  • Amber Enterprises India Limited

Why is the Company going public?

Given below are the objectives of the Company –

The Offer comprises a Fresh Issue by the company and an Offer for Sale by the selling shareholders. The company will not receive any proceeds from the Offer for Sale.

The Company proposes to utilise the Net Proceeds from the Fresh Issue towards funding of the following objects:

  • Repayment/ prepayment, in full or part, of certain borrowings availed by the Company
  • Funding capital expenditure towards upgrading and expanding the existing facilities at (i) Ghaziabad, UP, and (ii) Verna, Goa
  • General Corporate Purposes

IPO Details

IPO Size ₹ 475 Crore
Offer Mix Fresh Issue ₹ 175 Crore + Offer For Sell ₹ 300 Crore
Price Band ₹ 234 - ₹ 247
Lot Size 60 Shares (& in multiples thereof)
Face Value ₹ 5
Application Amount Min. ₹ 14,820 (1 lot) | Max. ₹ 1,92,660 (13 lots) [at upper price band]
Listing on NSE & BSE
Registrar KFin Technologies Limited
Cut-off time for UPI Mandate Confirmation 22-December-2022 (up to 05:00 PM)

Category Wise Availability

QIB ₹ 237.50 Crore
(50% of the Issue Size)
NIB ₹ 71.25 Crore
(15% of the Issue Size)
Retail ₹ 166.25 Crore
(35% of the Issue Size)

Indicative Issue Timeline

Activity Date
IPO Opens December 20, 2022
IPO Closes December 22, 2022
Finalization of the basis of allotment December 27, 2022
Unblocking of funds / Initiation of refunds December 28, 2022
Credit of equity shares to Demat accounts December 29, 2022
Listing of equity shares December 30, 2022
Source: Company RHP  Alternate Text


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