India FIH, a subsidiary of FIH Mobiles and Foxconn technology Group company, has acquired capital Market Regulator SEBI proceeded to raise ₹5,000 crore through an initial public offering (IPO).
According to the draft red herring prospectus (DRHP), the initial share-sale of Bharat FIH includes fresh issue of shares worth ₹ 2,502 crore and an offer for sale of up to ₹ 2,502 crore by the promoter group and Foxconn unit Wonderful Stars.
India FIH manufactures devices for Xiaomi and Nokia.
The company, which filed its initial IPO papers with SEBI in December 2021, received its comments on June 10, an update with the market regulator showed. on Monday,
In the parlance of SEBI, its comments imply that the IPO has to go ahead.
As per the draft papers, the proceeds of the new issue will be used to finance the company’s capital expenditure requirements for expansion of its existing premises, investment in the subsidiary, RSHTPL, working capital requirements and to support general corporate objectives.
At present, Wonderful Stars holds 99.97% stake in the company.
Bharat FIH, formerly Rising Stars Mobile India, is the largest Electronic Manufacturing Services (EMS) provider in India with a market revenue share of around 15% in FY21.
In addition to EMS services, the company is building capabilities to provide Original Equipment Manufacturers (OEMs) a comprehensive, vertically integrated “one-stop solution” with a range of Original Design Manufacturer (ODM) services, including product design and development is included. Component manufacturing and sourcing, logistics, and after-sales services.
The company is also expanding its Business In other high-growth industries besides mobile phones, which include mechanics, electric vehicles, television and hearing aids.