Elin Electronics Ltd, an electronics manufacturing services provider, which had filed the draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO) in November 2021, is all set to finally launch the issue on December 20. The IPO will remain open for subscription till December 22.
The company has fixed the price band at ₹234 to 247 per equity share.
Investors may place a bid for a minimum of 60 equity shares and in multiples thereof.
The public issue with a face value of ₹5 per equity share comprises a fresh issue worth ₹175 crore and an offer for sale of shares worth ₹300 crore.
Shares worth ₹121.1 crore will be sold by the promoter group, which includes Vinay Kumar Sethia, Kishore Sethia, Gaurav Sethia, Sumit Sethia, Suman Sethia, and Vasudha Sethia. Other shareholders will sell shares worth ₹178.88 crore.
According to the DRHP, 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 manager to the issue.
The company is a manufacturer of end-to end product solutions for major brands of lighting, fans, and small/ kitchen appliances in India, and is one of the largest fractional horsepower motors manufacturers in India.
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.