CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

India’s Elin Electronics files draft papers for $102m IPO

By Vinu Lal

08:47, 22 November 2021

Electronic circuit board close up
The electronic services firm’s initial public offering comprises a fresh issue and an offer for sale – Photo: Shutterstock

Indian electronics manufacturing services company Elin Electronics (EEL) filed early papers for its initial sale of shares to the public on Monday to raise INR7.6bn ($102m), according to draft offer documents filed with the country's market regulator. 

EEL provides electronics services for major brands of lighting, fans and kitchen appliances in India. The firm’s product portfolio includes light-emitting diodes (LEDs), fans and switches, small appliances, fractional horsepower motors, medical diagnostic cartridges, plastic moulded and sheet metal parts and components among others.

The New Delhi-based company’s initial public offering (IPO) comprises a fresh issue of shares worth INR1.75bn and an offer for sale (OFS) by existing investors of up to INR5.85bn, the company’s draft red herring prospectus (DRHP) or early papers showed.

Funds for expansion of facilities

The company would use about INR800m of proceeds from the fresh issue to repay debt and INR489.7m for expansion of existing facilities in the states of Uttar Pradesh and Goa. It would use some amount for general corporate purposes too.

EEL would also look at raising funds from anchor investors or qualified institutional buyers, a day prior to the IPO launch, according to the DHRP filed with the Securities and Exchange Board of India.


0.66 Price
-0.190% 1D Chg, %
Long position overnight fee -0.0072%
Short position overnight fee -0.0011%
Overnight fee time 22:00 (UTC)
Spread 0.00006


0.66 Price
-0.190% 1D Chg, %
Long position overnight fee -0.0072%
Short position overnight fee -0.0011%
Overnight fee time 22:00 (UTC)
Spread 0.00006


1.26 Price
+0.220% 1D Chg, %
Long position overnight fee -0.0046%
Short position overnight fee -0.0036%
Overnight fee time 22:00 (UTC)
Spread 0.00013


146.39 Price
+1.010% 1D Chg, %
Long position overnight fee 0.0112%
Short position overnight fee -0.0194%
Overnight fee time 22:00 (UTC)
Spread 0.010

According to a third-party report quoted in the early papers, EEL is a key player for LED lighting and flashlights, and small appliances with a market share of about 7% and 10.7% in the financial year 2020-21 respectively. 

Financials so far

EEL posted a net profit of INR348.6m for the financial year 2020-21 (FY2021), a 26.81% rise from INR274.9m recorded during the previous financial year.

Its revenues from operations rose by 9.78% to INR8.62bn in FY2021, primarily due to an increase in consumer purchase of home and personal appliances aided by the relaxation of Covid-19 led restrictions.

Axis Capital and JM Financial are the managers of the initial share sale.

Read More: India’s PM to repeal contentious farm laws that drew protests

Related topics

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading