Elin Electronics lists at a 1.62% discount on the bourses

• Shares of Elin Electronics listed at ₹243 against the issue price of ₹247 per share.
• The IPO was subscribed 3.09 times amidst volatile market conditions.
• The market capitalisation of the company stood at ₹1,206 crore.
  

Shares of Electronics manufacturing services company Elin Electronics made its stock market debut at a 1.62% discount at ₹243 as against the issue price of ₹247 per share.

The stock managed to shrug off positive opening of Indian benchmark indices and listed at a discount of ₹4 per share. The 30-stock index Sensex was up 0.41% at 61,383 on opening, while the 50-stock index Nifty50 was 0.3% higher at 18,245.

The market capitalisation of Elin Electronics currently stands at ₹1,206 crore, according to BSE data.

The weak listing is contrary to grey market expectations which hoped for a ₹4 premium per share. GMP is the premium at which IPO shares are traded in an unofficial market before they are listed on the stock exchanges.

The Elin Electronics IPO had received good demand from investors amidst volatile market conditions, as it was subscribed 3.09 times.

The IPO also received good demand from qualified institutional investors who subscribed 4.51 times, non-institutional investors subscribed 3.29 times. The portion reserved for retail investors has been subscribed 2.2 times.

This year, 37 IPOs made their stock market debut on the BSE mainboard. Most of them gave positive listing gains, except seven issues. Here are the top five best performing IPOs in 2022.
(Source: BSE)

Elin Electronics raised ₹475 crore from the public offer. Out of this, ₹175 crore worth shares are fresh issue, and ₹300 crore is via an offer for sale by promoters and shareholders.

The proceeds from the fresh issue will be used to repay debt, fund capital expenditure to upgrade and expand existing plants.

Elin Electronics is a manufacturer of end-to-end product solutions for major brands of lighting, fans, and small kitchen appliances in India. It is also one of the largest fractional horsepower motor manufacturers in India.

It also manufactures and assembles a wide array of products and provides end-to-end product solutions.

The company has three manufacturing facilities located in Ghaziabad (Uttar Pradesh), Baddi (Himachal Pradesh) and Verna (Goa). Its revenue and profitability has consistently improved in the last three financial years.
Source: RHP


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