Elin Electronics IPO review by Anil Singhvi: Subscribe or avoid? Check recommendation
Elin Electronics IPO review: Singhvi said that the electronic company has experienced promoters and are in business for a long time. He further said that the revenue of the company has grown almost 33 per cent YoY in the past five years.
Elin Electronics IPO review: Zee Business Managing Editor Anil Singhvi has recommended to subscribe Elin Electronics' IPO to risk bearing investors for long term. He said that if the shares list at lower level, then it would be a good buy.
Singhvi said that the electronic company has experienced promoters and are in business for a long time. He further said that the revenue of the company has grown almost 33 per cent YoY in the past five years.
Singhvi informed that Elin Electronic will be debt free after the IPO which is a pro. Conversely, he said that the company has only some big clients which accounts for 65 per cent of the business and it is a positive as it has focused clients but can be a negative if any client leaves.
He further said that the company has a lot of competition from unorganised space as it is not a unique business.
Singhvi further said that in the past 2-3 years, company’s debtors have increased which can be seasonal but is not good news.
He added that except for this year because of capex cash flow was negative, but in the future too the company will need to invest in capex. According to Anil Singhvi, valuations are reasonable.
IPO Subscription status:
The initial share-sale of electronics manufacturing services company Elin Electronics received 37 per cent subscription on the first day of offer on Tuesday.
The IPO got bids for 52,35,360 shares against 1,42,09,386 shares on offer, as per NSE data.
The category for Retail Individual Investors (RIIs) was subscribed 55 per cent, non-institutional investors portion received 43 per cent subscription and Qualified Institutional Buyers (QIBs) 1 per cent.
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.
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