Shares of Elin Electronics Ltd is trading at a discount of ₹11 per share on the grey market on Monday, according to topsharebrokers.com.
The initial public offer (IPO) price per share is ₹247 while its estimated listing price as of current grey market premium is ₹236, 4.45% lower. The grey market premium is negative in this case, which means the sellers are ready to sell the shares at a discount of ₹11 per share.
The 'Grey Market Premium' (GMP) refers to investors' readiness to pay more than the issue price.
According to the website, Monday's IPO GMP trend indicates discount and expects a discount listing. The lowest GMP is recorded at ₹11 while the highest at ₹48. The IPO will be listed on the bourses on Friday, December 30.
Since December 15, the shares of the company have been traded in the grey market.
The allotment of shares for Elin Electronics Ltd's initial public offering (IPO) is scheduled to take place tomorrow, i.e December 27.
The public issue that opened for subscription on Tuesday, December 20, closed on Thursday, December 22. On the final day, the issue was fully booked by qualified institutional buyers, non-institutional investors and retail investors.
On the first day, the IPO was subscribed 37 percent, and on the second day, the issue was subscribed 95 percent.
The company garnered ₹142.49 crore from anchor investors ahead of its initial public offering.
The company has fixed the price band at ₹234 to 247 per equity share.
The public issue with a face value of ₹5 per equity share comprises of a fresh issue of shares worth 175 crore rupees 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.
