Elin Electronics files draft papers to raise ₹760 crore via IPO

Market


Elin Electronics Ltd has filed draft papers with the Securities and Exchange Board of India to raise around 760 crore via an initial public offering.

The IPO consists of a fresh issue of shares worth 175 crore and an offer for sale of up to 585 crore by its existing promoters and shareholders.

The OFS comprises shares worth up to 32.10 crore by Kamal Sethia, up to 52.50 crore by Kishore Sethia, 47.40 crore by Gaurav Sethia, 12.20 crore by Sanjeev Sethia, 15.60 crore by Vasudha Sethia, and up to 9.10 crore by Vinay Kumar Sethia.

The firm will use 80 crore to repay debt. As of September 2021, it had a net debt of 127.51 crore.

Elin Electronics will also use 48.97 crore to upgrade and expand its existing facilities at Ghaziabad, Uttar Pradesh and Verna, Goa.

Axis Capital and JM Financial are the lead managers to the issue.

The firm is a leading electronics manufacturing services (EMS) provider 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 firm has overall market share at 12% in fiscal year 2021. Its top five customers include Signify, Philips, Havells, Eveready and Malbio. As of September 2021, it catered to 267 customers against 387 in FY21.

For fiscal 2021, its total revenue was at 864.90 crore against 786.37 crore a year ago. Net profit for the year stood at 34.86 crore versus 27.49 crore last year.

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