The initial public offering (IPO) of electronics manufacturing services company Elin Electronics was 95% subscribed on the second day of trading on Wednesday. The public edition with a set price range of €234-247 per share, to close Thursday, December 22nd.
According to market watchers, Elin Electronics shares are trading at a premium (GMP) of €22 today on the gray market. The company’s shares are expected to debut in stock exchanges next week on Friday, December 30, 2022.
Elin Electronics IPO consists of a new issue of up to €175 crore and an Offer to Sell (OFS) of up to €300 crore, totaling up to €475 crores.
“Elin serves its customers through a diversified product portfolio. Not only has this helped the company gain market share over the years, but it has also helped gain existing customers’ share of the wallet. As a result, revenue is up 18% CAGR in FY20-22. Elin has maintained its EBITDA margin in the 7-8% range in FY20-22, supported by cost control measures, the addition of new product categories and increasing focus on the high-margin ODM business. Additionally, PAT has grown at a CAGR of 19% in FY20-22, supported by higher EBITDA. We are assigning a SUBSCRIBE rating to the IPO,” said ICICI Securities.
Elin Electronics, a flagship company of the Elin Group, was founded in 1969. Based in Delhi, Elin is a manufacturer of end-to-end product solutions for major brands of lighting, fans and small kitchen appliances and a leading manufacturer of low power motors in the country.
“Elin Electronics Limited (EEL)’s presence in product segments with growing demand, a prominent customer base and an ongoing focus on efficiency and productivity has enabled it to deliver consistent and strong financial performance. It has a strong balance sheet with a net worth of Rs. 3,201.49 million as at 30 Sep 2022 and has maintained low levels of debt. Its strong operational and financial performance will enable it to capitalize on the growth opportunities in the OEM and ODM industry in India,” said HDFC Securities.
The views and recommendations made above are those of individual analysts or brokerage firms and not Mint.
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