Elin Electronics shares had a tepid listing on the bourses on Thursday after the IPO closed last week. The shares opened at a discount amid a positive domestic market, listing at Rs 243 on the BSE, as compared to the public issue price of Rs 247. The shares fell to a low of Rs 238, down 3.7%. The market predicted a muted listing ahead of the company’s debut since Elin Electronics’ shares were trading at a Rs 5 discount on the grey market.
Elin Electronics’ Rs 475 crore IPO has been booked 3.09 times. Qualified institutional buyers (QIBs) oversubscribed for their reserved portion, bidding 4.51x. Retail investors, on the other hand, bid 2.2 times for the 71,04,693 shares reserved for RIIs. The NII portion garnered 3.29x bids. The issue comprises a fresh issue of equity shares totalling Rs 175 and an offer-for-sale (OFS) of Rs 300 crore. 50% of the IPO was reserved for QIBs, while NIIs could bid for 15% and retail investors for the remaining 35%. The IPO price band was fixed at Rs 234-247 per equity share.
Prior to opening for public subscription, Elin Electronics raised Rs 142 crore from anchor investors, of which 70.18% was allocated to 4 domestic AMCs through 11 different schemes. These AMCs are SBI Mutual Fund, Kotak Mutual Fund, Aditya Birla Sun Life Asset Management and PGIM India Mutual Fund. Following the issue, the shareholding of the promoters will fall to 32.93% from 53.98%.
“Based on FY22 earnings the company is valued at 31.3x P/E, 16.8x EV/EBITDA and 1.2x EV/Sales. In view of the company’s dual OEM and ODM based business model, diverse products and services portfolio, healthy financials, focus on R&D and strong growth potential given the large addressable market, we recommend ‘SUBSCRIBE’ to the issue,” said Reliance Securities.
Elin Electronics is a manufacturer and assembles electronic end-to-end product solutions for major brands of lighting, fans, and kitchen appliances. The company has an original equipment manufacturer (OEM) as well as an original design manufacturer (ODM) business model.