The initial public offering (IPO) of Elin Electronics received 1.06 times subscription on the final day of bidding on Thursday. The initial share sale got bids for 1,48,27,260 shares against 1,42,09,386 shares on offer by 10:48 am today, as per BSE data.
The quota for retail individual investors (RIIs) was subscribed 1.47 times, the non-institutional investors (NIIs) portion received 1.47 times subscription and qualified institutional buyers (QIBs) got just one per cent subscription.
The IPO has a fresh issue of up to Rs 175 crore and an offer for sale of up to Rs 300 crore aggregating up to Rs 475 crore.
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Price range for the electronics manufacturing services firm’s IPO has been set at Rs 234-247 per share.
Grey market premium
Market participants said Elin Electronics IPO grey market premium (GMP) was seen around Rs 1. It implied that the grey market expected a muted listing for the company.
Delhi-based Elin is a manufacturer of end-to-end product solutions for major brands of lighting, fans, and small kitchen appliances, and a leading fractional horsepower motors manufacturer in the country.
“The growth of both the top and bottom lines appears to be steady. The asking P/E comes around 30 times based on FY22 (2021-22) financials, which seems to be reasonable compared to peers. However, the company’s top five clients account for more than 60 per cent of its revenues, and after the offer, promoter holdings would decline considerably,” Manan Doshi of UnlistedArena.com, dealing in unlisted & pre-IPO shares, told Business Today.
Brokerage view
* Swastika Investmart has assigned a ‘Subscribe’ rating to this issue for aggressive investors.
* Ventura Securities has given a ‘Subscribe’ rating to the IPO with a base 18-month price target of Rs 711, suggesting an upside of 23.2 per cent over the IPO price.
* A host of other brokerages including Nirmal Bang, Religare Securities, Hem Securities and KRChoksey Shares & Securities also assigned a ‘Subscribe’ rating to the issue.
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Axis Capital and JM Financial are the managers to the offer.
