Elin Electronics IPO Subscription Status:
The IPO of Elin Electronics, the country’s leading company making fractional horsepower, has been subscribed 95 percent till the second day of subscription today.
The IPO has so far received bids for 1.34 crore shares, while there are 1.42 crore shares on offer.
Retail investors have shown maximum interest in this IPO so far. Investors can invest in this issue till 22 December.
For this, a price band of Rs 234-247 per share has been fixed. The company wants to raise Rs 475 crore through this IPO.
Under this, new shares worth Rs 275 crore will be issued. At the same time, shares worth Rs 300 crore will be sold by the promoters and shareholders under the Offer for Sale (OFS).
How many subscriptions happened in different categories
- Retail Individual Investors (RII) – 1.33 times
- Qualified Individual Buyers (QIB) – 1 percent
- Non-Institutional Investors (NII) – 1.29 times
Half of the offer has been reserved for QIBs, 15 percent for non-institutional investors, and 35 percent for retail investors.
There is a launch of 60 shares for retail investors. Applications can be made for up to 13 lots.
The reduced craze in a gray market
Gray market Elin Electronics IPO’s craze in the gray market is decreasing. The IPO is trading at a premium of Rs 22 in the gray market.
A day ago, it was trading at a premium of Rs 48. In such a situation, this is a significant decline.
As per the current GMP, the issue may list at Rs 269, and investors are expected to make a profit of around 9 percent.
What does the company do?
Elin Electronics is a leading provider of Electronics Manufacturing Services (EMS). It provides end-to-end product solutions to leading lighting, fan, and kitchen appliance brands in the country.
It is one of the country’s largest manufacturers of Fractional Horsepower Motors.
Talking about the company’s financial health, it earned a revenue of Rs 1093 crore in the financial year 2021-22. While a year ago, this figure was Rs 862 crore.
At the same time, the company’s net profit increased by Rs 34.86 crore to Rs 39 crore in the same period. As per the data available till September 2022, it had a net debt of Rs 102.42 crore.
