Latest News | JK Files & Engineering, Elin Electronics Get Sebi's Go Ahead to Float IPOs

New Delhi, Feb 28 (PTI) Raymond-promoted JK Files & Engineering and Elin Electronics have received capital markets regulator Sebi's go ahead to raise funds through their initial public offerings (IPOs).

JK Files & Engineering and Elin Electronics are looking to raise Rs 800 crore and Rs 760 crore, respectively, through initial share sales.

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The companies, which filed their IPO preliminary papers with Sebi between November and December 2021, obtained regulator's observation letter on February 23, latest update with Sebi showed on Monday.

In Sebi's parlance, its observation implies green signal to launch an IPO.

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Going by the draft papers, JK Files & Engineering's public issue is entirely an offer of sale (OFS) of equity shares of Rs 800 crore by promoter Raymond Ltd.

At present, Raymond, the country's leading player in suiting and shirting, holds 100 per cent stake in the company.

JK Files & Engineering is engaged in the manufacturing of precision engineered components for tools and hardware (files and drills) and marketing of hand tools, power tool accessories and power tool machines and manufacturing of auto components and engineering products -- ring gears, flexplates and water pump bearings.

As per the draft papers, the public issue of Elin Electronics consists of fresh issue of shares aggregating up to Rs 175 crore, and an offer for sale of up to Rs 585 crore by promoters.

As part of the OFS, existing shareholders will sell shares of Rs 345.60 crore and promoters will divest shares worth Rs 239.4 crore.

Proceeds from the fresh issue will be used to the extent of Rs 80 crore to repay/prepay debt, Rs 48.97 crore for funding capital expenditure for upgrading and expansion of existing plants in Ghaziabad, Uttar Pradesh and Verna, Goa besides general corporate purposes.

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

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)