Elin Electronics Limited IPO Details

Brief History of the Company:

Elin Electronics was originally incorporated on March 26, 1982 at Kolkata, West Bengal as a private limited company under the Companies Act, 1956, with the name ‘Elin Electronics Private Limited’ pursuant to a certificate of incorporation granted by the RoC. Subsequently, name of the Company was changed to ‘Elin Electronics Limited’ upon conversion of Company into a public company pursuant to a special resolution passed by shareholders on July 27, 1987 and the certificate of incorporation was amended by the RoC consequent upon change of name on conversion to a public limited company on November 22, 1987.

Major Milestones of the Company:

Elin Electronics 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, and are one of the largest fractional horsepower motors manufacturers in India. Based on their overall market, they are projected to be the largest players in this category, with a market share of 12% in Fiscal 2021. (Source: F&S Report) In addition, Elin Electronics is one of the key players in LED lighting and flashlight with EMS market share of approximately 7% in Fiscal 2021, and is also one of the key players in small appliances vertical with EMS market share of 10.7% in Fiscal 2021.

Elin Electronics has a diversified product portfolio in EMS which includes:

  1. LED lighting, fans and switches including lighting products, ceiling, fresh air and TPW fans, and modular switches and sockets;
  2. Small appliances such as dry and steam irons, toasters, hand blenders, mixer grinders, hair dryer and hair straightener;
  3. Fractional horsepower motors, which is used in mixer grinder, hand blender, wet grinder, chimney, air conditioner, heat convector, TPW fans etc.; and 
  4. Other miscellaneous products such as terminal block for air conditioners, stainless steel blade for mixer grinders, die casting, radio sets. 

In addition to EMS offerings, Elin also manufacture medical diagnostic cartridges for use in diagnostic devices, and plastic moulded and sheet metal parts and components, largely for customers in the auto ancillary and consumer durables sectors. Elin also manufacture and sell fractional horsepower motors with the brand name of “Elin”.

Elin Electronics key customers according to different business verticals include:

  1. LED lighting, fans and switches: Signify Innovations and Eveready
  2. Small appliances: Philips, Bosch, Faber, Panasonic and Usha;
  3. Fractional horsepower motors: Havells, Bosch, Faber, Panasonic, Preethi (owned by Philips), Groupe SEB (Maharaja brand) and Usha
  4. Medical diagnostic cartridges: Molbio Diagnostics Private Limited
  5. Moulded and sheet metal parts and components: Denso and IFB

As on date, Elin Electronics has one subsidiary named Elin Appliances Private Limited (“EAPL”) which was incorporated on August 21, 2002 at Jalandhar as Connect Cables India Private Limited as a private limited company under the Companies Act, 1956 and a certificate of incorporation was issued by the Registrar of the Companies, Himachal Pradesh. A fresh certificate of incorporation was issued on November 27, 2002 when the name of the company was changed to ECI Cables Private Limited. Subsequent to the change of the name of company to Elin Appliances Private Limited, a fresh certificate of incorporation was issued on January 14, 2004. It has its registered office at Beli Khol, Manpurat, Nalagarh, District- Solan, Himachal Pradesh..

EAPL’s nature of business is to manufacture, assemble, process, buy, sell, import, export and deal in electronic, electrical and engineering gadgets, components, appliances and apparatuses of every description like, toaster, iron, juicer, oven, dish washes, white goods and other home appliances.

Objective of the Issue

It is proposed that the Fresh Issue’s net proceeds be used as follows:

  1. Repayment/ prepayment, in full or part, of certain borrowings availed by the Company;
  2. Funding capital expenditure towards upgrading and expanding their existing facilities at (i) Ghaziabad, Uttar Pradesh, and (ii) Verna, Goa; and
  3. General corporate purposes.
Elin Electronics Limited IPODetails
Price Band₹ 234 to ₹ 247 per share
Face Value₹ 5 per share
Issue Size475 Crs
Fresh Issue175 Crs
Offer for Sale300 Crs
Opening Date20 Dec 2022
Closing Date22 Dec 2022
Allotment27 Dec 2022
Initiation of Funds28 Dec 2022
Credit to Demat29 Dec 2022
Listing Date 30 Dec 2022
Pre Issue Share Holding53.98%
Post Issue Share Holding32.93%
1 lot60 Shares (₹ 14,820/-)
Retail Quota35%
QIB Quota50%
NII Quota15%
Retail (Min)1 Lot (60 Shares ~ ₹ 14,820/-)
Retail (Max)13 Lots (780 Shares ~ ₹ 1,92,660/-)
S-HNI (Min)14 Lots (840 Shares ~ ₹ 2,07,480/-)
B-HNI (Min)68 Lots (4080 Shares ~ ₹ 10,07,760/-)
PromotersMangi Lall Sethia, Kamal Sethia, Kishore Sethia, Gaurav Sethia, Sanjeev Sethia, Sumit Sethia, Suman Sethia, Vasudha Sethia and Vinay Kumar Sethia
Draft Red Herring ProspectusDRHP
Red Herring ProspectusRHP
Grey Market PremiumClick Here
Allotment StatusCheck Here

The Elin Electronics IPO’s bid period is from Dec 20, 2022, at 10:00 A.M., to Dec 22, 2022, at 5:00 P.M. UPI Mandate confirmation must be received by 5 PM on the day the issue closes.

EBITDA & PAT (in Crs)

EBITDA– Earnings Before Interest Tax Depreciation & Amortization              PAT – Profit After Tax

Total Assets, Share Capital and Borrowings (in Crs)

Revenue Growth (in Crs)

Peer Comparison

ParticularsElin Electronics LimitedDixon Technologies (India) LimitedAmber Enterprises India Limited
Face Value5210
PE25.75 (taking 247 as the listing price)140.4462.82
Revenue from Operations
(in ₹ Crs)
EBITDA Margin (%)7.313.587.34
PAT Margin (%)3.581.782.65
Debt to Equity Ratio0.320.280.41


If we analyse the financial parameters of Elin Electronics Limited, then it can be clearly seen that the firm has consistent and strong track record of financial performance. As per our chart 1 of EBITDA and PAT, we can see both the major financial parameters are increasing consistently on YoY basis. In addition to this, there is consistent growth in the total assets of the company and the revenue in the last 3 years. Though the borrowings were increased in FY 2020 from FY 2019 but we can see decrease in the FY 2021 from FY 2020. Moreover, the proceeds from fresh issue will also be utilised in paying the debit of around 80 crores. So, firm seems to be financially sound and fundamentally strong.

On comparison with its listed peers, we can see the PE ratio (₹247 cut off price is used for the calculation purpose) of 25.75  is lowest in its segment against PE ratio of 140.44 of Dixon Technologies and 62.82 of Amber Enterprises & it justifies the rate reasonability of the IPO pricing. Further, the RoNW of 12.92% is second among its peers. EBITDA margin is almost equal to the highest peer in the segment with best PAT margin among its peers. 

Additionally, Elin Electronics Limited is operating in a number of good business verticals and its clients include almost all the major players of the home appliances industry which has the highest customer base across the country. Elin Electronics Limited is also leading in the manufacturing of fractional horsepower motors for Grinders, Juicer Mixer Grinders, Hand Blenders, Ventilation Fans etc. So, business model of Elin Electronics Limited is unique and well diversified

As per RHP, Elin has already declared that its customers are the leaders in their segment of operation. Details can be checked below:


So, overall prospects of Elin Electronics Limited growth in future seems strong and the investment in this IPO should be for the long term and definetely it is one of the IPOs where one should not think of short term gains. However, this IPO might generate 10-15% listing gains. For those who want to invest only for listing gains then those can additionally check the grey market premium too.

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