Elin Electronics is an electronics manufacturing services company, based in the national capital. The company had filed its DRHP with Sebi in November 2021.
The company’s 760 crore IPO consists of fresh issue aggregating to Rs 175 crore and an offer for sale of up to Rs 585 crore from existing shareholders and promoters of the company. The face value of shares is Rs 5 apiece.
As a part of the OFS, existing shareholders will sell shares to the tune of Rs 345.60 crore and promoters will sell shares worth Rs 239.4 crore.
The net proceeds from the fresh issue will be used to prepay debt worth Rs 80 crore, funding capital expenditure for upgrading and expansion of existing plants for up to Rs 49 crore, besides general corporate purposes.
Elin offers electronic manufacturing Services (EMS), including universal and Induction Motors, tools, moulds, dies and domestic kitchen appliances, personal care products, lighting products and automotive Components.
The company stands different from the traditional EMS companies given its backward integrated product and solutions suite. Its focus is on component fabrication, sourcing and system assembly.
The key products in its EMS business vertical include LED lighting, fans and switches, small appliances, fractional horsepower and other EMS products.
For the financial year 2021, it reported a net profit of Rs 34.85 crore compared to a net profit of Rs 27.49 crore in the previous fiscal. The revenues from operations stood at Rs 862.38 crore as against Rs 785.58 crore in the preceding fiscal.
Axis Capital and JM Financial are the book running lead managers to the issue. KFin Technologies is appointed as registrar to the issue.
