Elin Electronics, a Delhi-based manufacturer of end-to-end product solutions for major brands of lighting, fans, and small kitchen appliances, made its flat market debut on Friday. The company’s shares started trading at ₹243 (around $3.30) on the Bombay Stock Exchange (BSE) and ₹244 (around $3.31) on the National Stock Exchange (NSE), a discount of more than 1% compared to the initial public offering (IPO) issue price of ₹247 (around $3.35) per share. Elin Electronics is also a leading fractional horsepower motors manufacturer in India.
Currently, it is trading at ₹232, a 5.99% negative 1D return on (NSE: ELIN)
The IPO of Elin Electronics was subscribed 3.09 times on the last day of subscription, which was open from December 20 to December 22, 2022. The public issue received bids for 4,39,67,400 shares against 1,42,09,386 shares on offer. The category meant for Qualified Institutional Buyers (QIBs) was subscribed 4.51 times, non-institutional investors received 3.29 times subscription, and Retail Individual Investors (RIIs) received 2.20 times subscription.
The initial share sale of Elin Electronics consisted of a fresh issue of up to ₹175 crore (around $23.7 million) and an offer for sale (OFS) of up to ₹300 crore (around $41 million), aggregating up to ₹475 crore (around $65 million). The price range for the offer was ₹234-247 (around $3.17-$3.35) per share.
Anchor investors in Elin Electronics were allocated 57.69 lakh (around 5.7 million) equity shares in aggregate at ₹247 per share, at the upper end of the price band in consultation with book running managers Axis Capital and JM Financial. The company mobilized a total of ₹142.5 crore (around $19.4 million) through anchor investors. Fifteen investors that invested in the issue via the anchor book include Aditya Birla Sun Life Trustee, Kotak Mahindra Trustee, SBI Life Insurance, SBI Mutual Fund, PGIM India, Kotak Funds – India Midcap Fund, and Pinebridge Global Funds.
Elin Electronics, a flagship company of the Elin Group, was established in 1969. The company is headquartered in Delhi and is a leading manufacturer of fractional horsepower motors in India. In addition to its core business, Elin Electronics also provides end-to-end product solutions for major brands of lighting, fans, and small kitchen appliances. The company’s IPO was well-received, with strong demand from both institutional and retail investors. Despite the slight discount at the time of listing, the company’s shares are expected to perform well in the long term, given the strong demand for its products and services.