Elin Electronics IPO aims to raise Rs 475 crore; price band fixed at Rs 234-247 apiece

India’s leading electronics manufacturing services (“EMS”) provider Elin Electronics to flaut its Rs 475 crore IPO from December 20. The company has finalized the issue price band at Rs 234-247 per share.

The issue will open till December 22 for subscription. Investors who want to bid for the IPO can make a bid for a minimum of 60 shares and then its multiples thereof. The anchor book will open on Monday, December 19.

Company has reserved 50% of shares for QIB, whereas 15% of shares are reserved for non-institutional investors. The remaining 35% of shares are reserved for retail investors.

The company aims to raise Rs 475 crore in the initial public offer, which includes fresh issue of Rs 175 crore and remaining Rs 300 crore as an offer for sale by company’s promoters and shareholders. The promoters of the company, Kamal Sethia, Suman Sethia, Kishore Sethia, Vasudha Sethia, Gaurav Sethia, Vinay Kumar Sethia and Sumit Sethia will sell shares worth Rs 121.1 crore, whereas other shareholders will offload shares worth Rs 178.89 crore.

The company aims to use the net proceeds to repay debt and for capital expenditure to upgrade and expand its existing facilities at Ghaziabad in Uttar Pradesh and Verna in Goa.

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.

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