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SBI MF and Kotak MF take a large allocation; Participation from 2 FPIs and 6 DIIs

Elin Electronics Limited is a leading electronics manufacturing services (“EMS”) manufacturer of end-to end product solutions for major brands of lighting, fans, and small/ kitchen appliances in India has garnered Rs 142.49 crore from anchor investors ahead of its initial public offering that opens for public subscription on Tuesday, December 20, 2022. The company informed the bourses that it allocated 57,69,223 shares at Rs. 247 per share (including share premium of Rs 242 per Equity Share) on Monday, December 19, 2022, to anchor investors.

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.

Out of the total allocation of 57,69,223 Equity Shares, 40,48,560 Equity Shares (i.e 70.18% of the Total Allocation to Anchor Investors) were allocated to 4 domestic mutual funds through a total of 11 schemes.

On the basis of overall market, Elin Electronics is the largest players in this category, with a market share of 12% in Fiscal 2021. In addition, it is also one of the key players in LED lighting and flashlight with EMS market share of approximately 7% in Fiscal 2021, and are also one of the key players in small appliances vertical with EMS market share of 10.7% in Fiscal 2021. (Source: F&S Report)

The company partners with leading consumer electronics and appliances brands for LED lighting, fans and switches such as Signify Innovations and Eveready; for Small appliances such as Philips, Bosch, Faber, Panasonic and Usha; for fractional horsepower motors such as Havells, Bosch, Faber, Panasonic, Preethi (owned by Philips), Groupe SEB (Maharaja brand) and Usha; as well as for Medical diagnostic cartridges such as Molbio Diagnostics Private Limited and for Moulded and sheet metal parts and components such as Denso and IFB.

The company’s key diversified product portfolio in EMS includes: LED lighting, fans and switches including lighting products, ceiling, fresh air and TPW fans, and modular switches and sockets;  small appliances such as dry and steam irons, toasters, hand blenders, mixer grinders, hair dryer and hair straightener; fractional horsepower motors, which is used in mixer grinder, hand blender, wet grinder, chimney, air conditioner, heat convector, TPW fans etc.; and other miscellaneous products such as terminal block for air conditioners, stainless steel blade for mixer grinders, die casting, radio sets.

The company’s revenues from operations increased by 26.83% from Rs 862.38 crore in Fiscal 2021 to Rs 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% from Rs 34.86 crore in Fiscal 2021 to Rs 39.15 crore in Fiscal 2022.

Revenues from operations stood at Rs 604.46 crore for the six months ended September 30, 2022 and profit after tax at Rs 20.67 crore.

Axis Capital Limited, and JM Financial Limited are the book running lead manager to the issue and KFin Technologies Private Limited is the registrar to the offer. The equity shares are proposed to be listed on the Main Board of BSE and NSE.

IPO Details

The issue with a face value of Rs 5 per equity share comprising a fresh issue aggregating up to Rs 175 crore, and an offer for sale of up to Rs 300 crore by existing shareholders.

The Offer for Sale comprises up to Rs 17.18 crore by Kamal Sethia, up to Rs 28.09 crore by Kishore Sethia, up to Rs 25.38 crore by Gaurav Sethia, up to Rs 13.20 crore by Sanjeev Sethia, up to Rs 6.66 crore by Sumit Sethia, up to Rs 30.52 crore by Suman Sethia, up to Rs 8.33 crore by Vasudha Sethia and up to Rs 4.96 crore by Vinay Kumar Sethia (The Promoter Selling Shareholders”), and up to Rs 178.88 crore by Other selling shareholders (The “Other Selling Shareholders”).

The Company is proposing to open its initial public offering of Equity Shares (the “Offer”) on Tuesday, December 20, 2022, and closes on Thursday, December 22, 2022. The price band for the Offer has been determined at Rs 234 – Rs 247 per equity share.

The IPO will fetch Rs 475 crore at the upper end of the price band.

Investors can bid for a minimum of 60 equity shares and in multiples of 60 equity shares thereafter.

The Offer is being made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended, read with Regulation 31 of the SEBI ICDR Regulations.

The Offer is being made through the Book Building Process, wherein not more than 50% of the Offer shall be available for allocation to Qualified Institutional Buyers, not less than 15% of the Offer shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders.

BSE Link: https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20221219-70

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