Bharat FIH, a Foxconn Technology Group firm, has obtained approval from capital market regulator SEBI to launch Rs 5,000 crore preliminary public providing (IPO). The public challenge includes recent challenge of shares price Rs 2,502 crore and an offer-for-sale of as much as Rs 2,502 crore by promoter group and Foxconn unit Wonderful Stars. The firm had filed draft crimson herring prospectus with capital market regulator in December 2021. Bharat FIH gives manufacturing and meeting providers for Xiaomi’s cellphones in India.
The ebook working lead managers to the problem are Kotak Mahindra Capital Company, Citigroup Global Markets India, BNP Paribas, and HSBC Securities and Capital Markets (India). While the registrar to the problem is KFin Technologies.
iPhone maker Foxconn’s India unit may have a 75% reservation for Qualified Institutional Buyers (QIB) whereas 15% of the portion shall be reserved for Non-institutional Investors (NII). This would go away solely 10% of all the challenge for retail buyers. Upon succesful itemizing on BSE and NSE, Bharat FIH will be a part of the likes of Dixon Technologies (India), and Amber Enterprises India. The common trade peer group P/E ratio stood at 168.82x, in keeping with DRHP.
Bharat FIH has deliberate to make use of the funds raised by the recent challenge to fund capital expenditure necessities of the corporate in the direction of upgradation and enlargement of their present campuses. The firm additionally plans to put money into their subsidiary RSHTPL, for financing its capital expenditure necessities, and funding working capital necessities. The firm, in its DRHP, mentioned that it derives most of its income from Xiaomi, a cell phone OEM primarily based in China.
DRHP famous that firms like Bharat FIH, Flextronics and Dixon have already began EMS for some main firms like Xiaomi, Apple, Motorola, Lenovo and others. Local EMS capabilities when it comes to product meeting, packaging and a few firms like Dixon providing reverse logistics for cellphones is a sexy proposition for OEMs to think about EMS/ODM for native meeting. Increasing logistics and uncooked materials prices raises manufacturing prices which impacts OEMs. This will lead OEMs to show to EMS/ODM suppliers, which provides full end-to-end resolution.
Source: www.financialexpress.com”