Elin Electronics Limited IPO

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i. 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.

ii. They manufacture and assemble a wide array of products and provide end-to-end product solutions. They serve under both original equipment manufacturer (“OEM”) and original design manufacturer (“ODM”) business models. Under the OEM model, they manufacture and supply products basis designs developed by their customers, who then further distribute these products under their own brands. Under the ODM model, in addition to manufacturing, they conceptualize and design the products which are then marketed to our customers’ prospective customers under their brands. The company has developed ODM capabilities with respect to lighting products and small appliances.

iii. Company’s key diversified product portfolio in EMS includes (i) LED lighting, fans, and switches including lighting products, ceiling, fresh air, and TPW fans, and modular switches and sockets; (ii) small appliances such as dry and steam irons, toasters, hand blenders, mixer grinders, hair dryer, and hair straightener; (iii) fractional horsepower motors, which is used in mixer grinder, hand blender, wet grinder, chimney, air conditioner, heat convector, TPW fans, etc.; and (iv) other miscellaneous products such as terminal block for air conditioners, stainless steel blade for mixer grinders, die casting, radio sets.

iv. Key customers by business verticals include:
• LED lighting, fans, and switches: Signify Innovations and Eveready;
• Small appliances: Philips, Bosch, Faber, Panasonic, and Usha;
• Fractional horsepower motors: Havells, Bosch, Faber, Panasonic, Preethi (owned by Philips), Groupe SEB(Maharaja brand) and Usha;
• Medical diagnostic cartridges: Molbio Diagnostics Private Limited; and
• Moulded and sheet metal parts and components: Denso and IFB.

Competitive Strengths

i. Established market position in key verticals including leadership in fractional horsepower motors
ii. Diversified products resulting in a de-risked business model
iii. Entrenched relationships with a marquee customer base


Objects of the Elin Electronics Limited IPO:

The company proposes to utilise the Net Proceeds of the Fresh Issue towards funding the following objects: 1. Repayment/ prepayment, in full or part, of certain borrowings availed by the Company. 2. Funding capital expenditure towards upgrading and expanding the existing facilities at (i) Ghaziabad, Uttar Pradesh, and (ii) Verna, Goa. 3. General corporate purposes

Elin Electronics Limited IPO Details:

Open Date: Dec 20 2022
Close Date: Dec 22 2022
Face Value: ₹ 5 Per Equity Share
Issue Type: Book Built Issue
Issue Size: 475 Cr.
Lot Size: 60 Shares
Issue Price: ₹ 234-247 Per Equity Share
Listing At: NSE,BSE
Listing Date: Dec 30 2022

Promoters And Management:

Mangi Lall Sethia, is the Chairman & Wholetime Director of the Company. He is also a Promoter of the Company and has been associated since its incorporation. He holds a master’s degree in arts from Jain Vishva Bharati Institute (Deemed University), Ladnun. He has 64 years of experience in electronic manufacturing services sector. He is currently associated with Kanchan Commercial Company Private Limited. Kamal Sethia, is the Managing Director of the Company. He is also a Promoter of the Company and has been a part of the Company since 1992. He holds a bachelor’s degree in commerce from University of Delhi. He has approximately 41 years of experience in electronic manufacturing services sector. He was previously associated with L.K.M Electronic Corporation as a partner since 1978 and the director of Kanchan Commerical Co. Private Limited since 1988. Sanjeev Sethia, is the Wholetime Director of the Company. He is also a Promoter of the Company and has been a part of the Company since 1994. He holds a bachelor of science in electrical engineering from the University of Texas at Austin. He has approximately 27 years of experience in electronic manufacturing services sector.

Financials of Elin Electronics Limited IPO:

A) Balance Sheet Analysis of ELIN Electronics IPO
Particulars (Fig. In Cr) 2022 2021 2020
PPE 188 161 154
Share Capital 30 26 23
Debt (Long-Term+ Short Term) 101 114 70
Inventory 120 115 80
Trade Receivables 177 183 91
Trade Payables 99 104 68
Working Capital 137 126 103
Receivables days 59 77 42
Inventory Days 55 68 54
Creditor Days 45 62 46
Cash Conversion Cycle 69 83 50
B) P&L Analysis of ELIN Electronics IPO
Particulars ( Fig. in Cr) 2022 2021 2020
Revenue from Operations 1094 862 786
Cost of Material Consumed 792 617 543
Purchase of Stock-in-Trade 28 12 17
Change in Inventories -5 -4 -6
Employees Benefit Expense 125 108 106
Other Expenses 74 63 70
EBITDA 80 66 56
OPM% 7.31% 7.66% 7.12%
Other Income 1 3 1
Depreciation 14 12 10
Finance Cost 13 10 12
PBT 54 47 35
Tax 14 13 8
PAT 40 34 27
No. of Shares (Post IPO) 4.96 4.96 4.96
EPS 8.06 6.85 5.44
  C) Cash Flow Statement of ELIN Electronics IPO
Particulars (Fig. In Cr) FY 2022 FY 2021 FY2020
PBT 53 47 35
Cash Stuck in Working Capital 13 94 22
Cash Flow From Operations 51 -34 77
CFO/PBT 96.23% -72.34% 220.00%
Capex Done 41 18 32
Raise Cash from Debt 2 6 -7
Debt Repaid 13 16 10
Raise Cash from Equity 0 0 0
Cash in Hand 4 5 9
D) Ratio Analysis of ELIN Electronics IPO
Particulars 2022 2021 2020
Gross Margins 27.61% 28.42% 30.92%
EBITDA margins 7.31% 7.65% 7.12%
NPM 3.65% 3.93% 3.43%
D/E 3.37 4.38 3.04
Interest Coverage Ratio 6.15 6.6 4.6
Current Ratio 1.74 1.63 1.91
Asset Turnover 4.5 3.9 -
ROE 36.00% 33.00% 34.00%
ROCE 22.00% 21.00% 20.00%

Lead Manager of Elin Electronics Limited IPO:

  1. Axis Capital Limited
  2. JM Financial Consultants Private Limited

Registrar of Elin Electronics Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Elin Electronics Limited 143, Cotton Street, Kolkata – 700 007, West Bengal, India Phone: +91 011 43000400 Email: cs@elinindia.com Websitehttps://www.elinindia.com/

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