The shares of FIH Mobile, a unit of Apple Inc supplier Foxconn, surged up by 6.7 percent, after the announcement by Bharat FIH
Bharat FIH, the domestic arm of Hong Kong-listed FIH Mobile Ltd, filed for an initial public offering (IPO) worth Rs 5,000 crore today, 22 December. The largest phone maker to Xiaomi, Bharat FIH is one of the top domestic electronic manufacturing services (EMS) companies in the country.
The shares of FIH Mobile, a unit of Apple Inc supplier Foxconn, surged up by 6.7 percent, after the announcement by Bharat FIH.
According to MoneyControl, the IPO will consist of an offer for sale (OFS) of Rs 2,500 crore as well as a fresh issue of the same amount. The OFS will offload shares by promoter group and Foxconn unit Wonderful Stars, according to Reuters.
The proceeds from the IPO will be used for working capital requirements, general corporate purposes, funding capital expenditure requirements towards upgrading and expanding existing campuses and investing in subsidiary RSHTPL for financing its capital expenditure needs.
The news of the company’s public issue comes as Foxconn’s plant near Chennai will remain shut this week due to protests after a food poisoning incident.
The draft prospectus of the company filed before SEBI, according to MoneyControl, states that it has been expanding into industries other than mobile phones, with a focus on high-growth industries such as electric vehicles mechanics, televisions, and hearables.
The legal advisors of the Bharat FIH public issue are S&R Associates and Shardul Amarchand Mangaldas, while BNP Paribas, HSBC Securities and Capital Markets (India), Citigroup Global Markets India and Capital Markets (India) are the running book managers of the issue.
Bharat FIH conducts its operations in three campuses based in Tamil Nadu and Andhra Pradesh, with a total of 94 production lines, 35 assembly lines, 30 sub-assembly lines and 29 surface mount technology lines. Each campus of the company integrates logistics, manufacturing, warehousing and accommodation facilities.
Bharat FIH has also recently inaugurated a research and development centre at the Indian Institute of Technology(IIT) Madras Research Park.
The company had a market revenue share of 15 percent in the financial year 2021.