IPO Update: Raymond-Backed JK Files & Engineering, Elin Electronics get Sebi’s nod to Launch IPO

Raymond-backed JK Files & Engineering and Elin Electronics have gained approval from financial markets regulator Sebi to raise cash through initial public offerings (IPOs). JK Files & Engineering and Elin Electronics intend to raise Rs 800 crore and Rs 760 crore, respectively, from first share offerings.

API Holdings, the parent company of online pharmacy PharmEasy, CMR Green Technologies, and Wellness Forever Medicare, received approval from market regulator Sebi to conduct its initial public offering last week. According to preliminary documents filed with Sebi, JK Files’ public offering is entirely an offer of sale (OFS) by its promoter Raymond, whereas Elin Electronics’ offer is a mix of fresh issue and OFS.

JK Files & Engineering

Precision engineered components for tools and hardware (files and drills) are manufactured, as are hand tools, power tool accessories, and power tool machines, as well as car components and engineering items such as ring gears, flexplates, and water pump bearings. At present, Raymond, the country’s leading player in suiting and shirting, holds 100 per cent stake in the company.

The company reported a combined profit of 25.46 crore for the fiscal year ending March 31, 2021, up from 14 crore the previous year. The revenue was 350 crore, down from 382 crore the previous year.

Raymond’s board of directors authorised the listing of its subsidiary JK Files & Engineering on the domestic exchanges BSE and NSE on December 1. The public offering is essentially an OFS of equity shares worth around Rs 800 crore by promoter Raymond, a major participant in the suiting and shirting industries. Since this issuance is entirely OFS, the company will not receive any proceeds from the IPO.

SBI Capital Markets, DAM Capital Advisors (previously known as IDFC Securities), and HDFC Bank have been appointed as the issue’s book running lead managers.

Elin Electronics

Elin, based in Delhi, is a leading electronics manufacturing services (EMS) producer in India, providing end-to-end product solutions for major brands of lighting, fans, and small/kitchen appliances, as well as a leading fractional horsepower motors maker.

According to the draught prospectus, the business would raise up to 175 crore through a fresh stock offering and up to 585 crore through an OFS, in which promoters and others would dilute their stake in the company.

The OFS consists of up to 239.4 crore in equity offloading by promoters and 345.60 crore in equity offloading by current shareholders.

The funds raised from new equities would be used to repay debt, fund capital expenditure for upgrading and expanding existing plants in Ghaziabad, Uttar Pradesh, and Verna, Goa, as well as for general corporate reasons.

Revenues from operations increased 9.8 percent to 862.38 crore in fiscal 2020-21, up from 785.58 crore in fiscal 2020. The net profit increased to 34.86 crore from 27.49 crore in the previous fiscal.

The IPO’s book-running lead managers are Axis Capital and JM Financial.