Elin Electronics Ltd's initial public offering (IPO) was subscribed 0.37 times or 37 percent on the first day, mainly driven by response from retail investors and non-institutional investors. The issue that opened on Tuesday will close on Thursday.
The company received bids for 52,35,360 shares against 1,42,09,386 shares on offer, according to data from the BSE.
The qualified institutional buyers' portion was subscribed 0.01 times. The company received bids for 21,600 shares against 40,59,824 on offer for this segment.
The non-institutional investors' portion was subscribed 0.43 times. The company received bids for 13,15,980 shares against 30,44,869 on offer for this segment.
The retail investors' portion was subscribed 0.55 times. The company received bids for 38,97,780 shares against 71,04,693 on offer for this segment.
The company garnered ₹142.49 crore from anchor investors ahead of its initial public offering.
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.
The company has fixed the price band at ₹234 to 247 per equity share.
The public issue with a face value of 5 rupees per equity share comprises of a fresh issue of shares worth ₹175 crore and an offer for sale of shares worth ₹300 crore by existing shareholders.
Shares worth ₹121.1 crore will be sold by the promoter group, which also includes Vinay Kumar Sethia, Kishore Sethia, Gaurav Sethia, Sumit Sethia, Suman Sethia, and Vasudha Sethia, and shares worth ₹178.88 crore will be sold by other shareholders.
According to the red herring prospectus (RHP), proceeds of the fresh issue will be utilised for the purpose of repayment or prepayment of loans, funding capital expenditure towards upgrading and expanding their existing facilities in Ghaziabad and Verna, and to meet the general corporate expenses.
Axis Capital Limited and JM Financial Limited are the book running lead managers to the issue.
According to the RHP, the company’s revenues from operations increased by 26.83 percent from ₹862.38 crore in fiscal 2021 to ₹1,093.75 crore in fiscal 2022 primarily due to increase in consumer purchase of home and personal appliances, whereas profit after tax grew 12.31 percent from ₹34.86 crore in fiscal 2021 to ₹39.15 crore in fiscal 2022.