Elin Electronics IPO: Should You Subscribe To The Issue?

Elin Electronics Limited's IPO opens today for subscriptions for its three-day, starting December 20, with the goal of raising Rs 475 crore through the primary route. The IPO will close on December 22.

Prices band for the IPO shares range from Rs 234 to Rs 247 per share. An offer for sale (OFS) of up to Rs 300 crore and a fresh issue for Rs 175 crore are both included in the issue.

Brokerage comments

According to the Prabhudas Lilladher, One can subscribe to IPO for long term as Elin 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 is one of the largest fractional horsepower motors manufacturers in India. In addition, they are one of the key players in LED lighting and flashlight with EMS market share of approximately 7% in FY2021 and is also one of the key players in small appliances vertical with EMS market share of 10.7% in FY2021. Elin serves under both original equipment manufacturer and original design manufacturer business models. Elin also manufactures medical diagnostic cartridges for use in diagnostic devices and plastic molded and sheet metal parts and components, largely for customers in the auto ancillary and consumer durables sectors.

They are backward integrated as they have in-house manufacturing facilities for components and sub-assemblies, modern and state of the art manufacturing facilities equipped with high quality machinery, assembly lines and full power backup for 100% capacity. Also, the large-scale setup includes 157 moulding machines, and 104 power presses helps them bring efficiencies and economies of scale.

They have a varied product diversification with a strong customer base including Phillips, Bosch, Usha, Panasonic and such. Out of their Top-20 customers, they have been serving 11 customers for over 10 years and have been serving 16 customers for over 5 years. Company's high customer retention capabilities are due to their one-stop-shop facilities and consistently maintaining high standards of manufacturing quality of products in a timely manner.

Disclaimer

The IPO has been picked from the brokerage report of Prabhudas Lilladher. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.