Elin Electronics is set to make its debut at the Dalal Street on Friday, making it the seventh listing for the month and the last listing of the calendar, which may disappoint the investors, who might have bid for the issue for a listing pop.
Shares of Elin Electronics were trading at a mild discount of Rs 5 apiece in the grey market, just a day ahead of listing, signaling a flat debut for the company.
Analysts tracking the grey market said that the poor performance of the recent listings, subdued market sentiments, soft margins and major chunk of offer-for-sale (OFS) were likely to hit the listing prospects of the company.
"The flop show by the recent debutants and softened sentiments in the broader markets are denting the listing prospects for the company," said Abhay Doshi, co-founder of UnlistedArena. adding that, "one should not expect any positive surprise from the listing."
Even the company's growth and margins have not been on the northward trajectory, he added. "The big portion of the issue is going into offer-for-sale (OFS), which also made investors skeptical over the issue."
The Rs 475-crore initial public offering (IPO) of Elin Electronics was open from December 20 to December 22. The company sold its shares in a price band of Rs 234-247 apiece. The issue was subscribed over three times.
The portion for qualified institutional bidders was booked 4.5 times, whereas quota for non-institutional investors was subscribed 3.3 times. The allocation for retail investors fetched 2.2 times bids.
Incorporated in 1969, Elin Electronics is a leading electronics manufacturing services provider, which provides end-to-end product solutions for major brands of lighting, fans, and kitchen appliances in India.
The Kolkata headquartered company has three manufacturing facilities which are strategically located in Ghaziabad (Uttar Pradesh), Baddi (Himachal Pradesh) and Verna (Goa).
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