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    Elin Electronics IPO subscribed 95% on day 2

    Synopsis

    According to the data from the BSE, the investors made bids for 1,34,54,580 equity shares or 95% compared to the 1,42,09,386 equity shares offered for the subscription by 5 pm on Wednesday, December 21

    elin1ET Bureau & Agencies
    New Delhi: The Rs 475-crore initial public offering (IPO) of Elin Electronics (EEL) was subscribed 95% on Day Two. The issue was subscribed 37% on Day One.

    The company is selling its shares in the range of Rs 234-247 apiece between December 20 and 22, with a lot size of 60 equity shares. The issue comprises a fresh portion of Rs 175 crore, along with an offer for sale (OFS) of Rs 300 crore.

    According to the data from the BSE, the investors made bids for 1,34,54,580 equity shares or 95% compared to the 1,42,09,386 equity shares offered for the subscription by 5 pm on Wednesday, December 21. The quota for retail bidders was booked 1.33 times, whereas the allocation for non-institutional investors was subscribed 1.29 times. The portion for qualified institutional bidders was booked only 1%.

    Incorporated in 1969, Elin Electronics is a leading electronics manufacturing services provider. It manufactures and assembles an array of products and provides end-to-end product solutions.

    A majority of brokerages are majorly positive on the issue and have suggested subscribing to it, citing strong financial, robust business models, and attractive valuations.

    It has also managed to maintain consistent EBITDA margins over the years, which shows the underlying stability of the company, said Cholamandalam Securities in its IPO note.

    "It is reasonably priced at 38 times price-to-earnings (at the higher price band). Given the room for growth in the EMS sector, we recommend investors with a long-term investment horizon to 'subscribe' to the IPO," it added.

    50% of shares are reserved for qualified institutional buyers (QIBs), whereas 15% shares are reserved for non-institutional investors (NIIs). The remaining 35% will be allotted to retail investors.

    At a higher price band, EEL is demanding an EV/S multiple of 1x, which is at a discount to the peer average of 2.1x, said Choice Broking. "We believe the IPO is attractively priced."

    Considering the government policy tailwind for the electronics manufacturing sector, EEL’s positioning in its product vertical, and vast growth opportunities, it added with a subscribe rating.

    Axis Capital and JM Financial Services are the book-running lead managers to the issue, whereas KFin Technologies has been appointed as the registrar to the issue.

    (Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)



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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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