Elin Electronics Ltd IPO lists at 1.21% discount, dips further

Elin Electronics IPO had a tepid listing on 30th December 2022, listing at a marginal discount of -1.21%, but closing the day sharply below the listing price as well as the issue price of the IPO. One almost say that the stock had select a wrong day to list as the Nifty was down 86 points and the Sensex was down nearly 293 points on Friday. While the stock did show some bouts of volatility during the day, it closed more than 7% below the issue price on the first day of trading on the NSE. It also closed well below the listing price. With subscription of just about 3.09X overall and QIB subscription at 4.51X, the listing was expected to be moderate, at the very best. Here is the Elin Electronics Ltd listing story on 30th December 2022.

The IPO price was fixed at the upper end of the band at Rs. 247 which was anyways rather ambitious considering the rather moderate 3.09X overall subscription and the 4.51X QIB subscription in the IPO. In addition, the retail portion had got just a little over two times subscription in the IPO. The price band for the IPO was Rs. 234 to Rs. 247. On 30th December 2022, the stock of Elin Electronics Ltd listed on the NSE at a price of Rs. 244, a marginal discount of -1.21% on the IPO issue price of Rs. 247. On the BSE also, the stock listed at Rs. 2243, a discount -1.62% to the IPO price.

On the NSE, Elin Electronics Ltd closed on 30th December 2022 at a price of Rs. 229.25. That is a first day closing discount of -7.19% on the issue price of Rs. 247 and a discount of -6.05% on the listing price of Rs. 244. In fact, the listing price turned out to be almost the high price of the day and the stock traded all through the day below the IPO price. On the BSE, the stock closed at Rs. 227.80. That represents a first day closing discount of -7.77% below the issue price and also a discount of -6.26% below the listing price on the stock exchange. On both the exchanges, the stock listed marginally below the IPO issue price but closed Day-1 sharply below the listing price and the IPO price too. In fact, the high of the day was lower than the IPO price on both the exchanges. Clearly, the tepid subscription took its toll on the first day of listing as there was a rush to exit the stock after the weak opening. But the real problem was the market crash on Friday, especially in the second half.

On Day-1 of listing, Elin Electronics Ltd touched a high of Rs. 245 on the NSE and a low of Rs. 225.60. The discount sustained through the day. In fact, if you look at the range of prices, the stock opening price turned out to be the high point of the day and the stock closed very near to the low price of the day. The fall was exacerbated by the fact that after a positive opening the markets fell vertically in the last two hours of trading. On Day-1 of listing, the Elin Electronics Ltd stock traded a total of 80.19 lakh shares on NSE amounting to value of Rs. 188.87 crore on the first day. The order book during the day showed a lot of selling with the sell orders far exceeding the buy orders at any point of time. The pressure virtually got accentuated in the last hour or so.

On Day-1 of listing, Elin Electronics Ltd touched a high of Rs. 244.75 on the BSE and a low of Rs. 225.60. The discount sustained through the day. In fact, if you look at the range of prices, the stock opening price turned out to be the high point of the day and the stock closed very near to the low price of the day. The fall was exacerbated by the fact that after a positive opening the markets fell vertically in the last two hours of trading as traders preferred to stay light over the weekend. On Day-1 of listing, the Elin Electronics Ltd stock traded a total of 6.75 lakh shares on BSE amounting to value of Rs. 15.80 crore on the first day. The order book during the day showed a lot of selling with the sell orders far exceeding the buy orders at any point of time. The pressure virtually got accentuated in the last hour or so as traders also opted to close outstanding positions and go light on the weekend.

While the volumes on the BSE were not as much as on the NSE, the trend was once again the same. The order book through the day showed a lot of selling pressure with the sell orders far exceeding the buy orders at any point of time. That make it a sell on rises stock through the day. However, this can also be attributed to the selling pressure on Friday. On the NSE, out of the total 80.19 lakh shares traded during the first day of trading, the deliverable quantity represented 41.84 lakh shares or a deliverable percentage of 52.17% on the NSE. That shows a lot of delivery selling. Even on the BSE, out of the total 6.75 lakh shares of quantity traded, the deliverable quantity at a gross across client level was 1.80 lakh shares representing total deliverable percentage of 26.69%.

At the close of Day-1 of listing, Elin Electronics Ltd had a market capitalization of Rs. 1,131.24 crore with free-float market cap of Rs. 305.43 crore.