Elin Electronics IPO: Company Files Draft Papers To Raise Rs760 Crore

Elin Electronics Limited, a prominent electronics manufacturing services company, has filed preliminary papers with the capital markets regulator Sebi to raise Rs 760 crore through an initial public offering (IPO).

The company expects to raise Rs 760 crore from the offer, which includes a fresh issue of Rs 175 crore of shares and an offer for sale (OFS) of Rs 585 crore from several selling shareholders, including promoters Kamal Sethia, Kishore Sethia, Gaurav Sethia, Sanjeev Sethia, Sumit Sethia, Suman Sethia, Vasudha Sethia, and Vinay Kumar Sethia.

According to the prospectus, the net proceeds from the new offer would be used for debt repayment and capital expenditure to upgrade and expand existing facilities in Ghaziabad (Uttar Pradesh) and Verna (Goa), as well as general business reasons. Signify Innovations, Eveready, Philips, Bosch, Faber, Panasonic, Usha, Havells, Faber, Panasonic, Groupe SEB (Maharaja brand), Molbio Diagnostics, Denso, and IFB were among its important customers.

The issue's main managers are Axis Capital and JM Financial.

The company is one of India's largest fractional horsepower motor manufacturers and a leading electronics manufacturing services (EMS) provider of end-to-end product solutions for major brands of lighting, fans, and small/kitchen appliances.

In fiscal year 2021, the company has a market share of 12%. Signify, Philips, Havells, Eveready, and Malbio are among its top five customers. It served 267 customers in September 2021, down from 387 in FY21.