Foxconn’s India Arm Bharat FIH To Launch Rs 5,000-Crore IPO, Files Draft Papers With SEBI
Foxconn’s public issue would include a fresh issue of equity shares worth Rs 2,500 crore and an offer for sale by existing shareholders worth Rs 2,500 crore by promoter group
New Delhi: Hong Kong-listed FIH Mobile’s India subsidiary Bharat FIH filed draft red herring prospectus (DRHP) for its initial public offering (IPO) of Rs 5,004 crore ($662.97 million) on Wednesday, according to a report by Reuters.
Shares of FIH Mobile, a unit of Apple Inc supplier Foxconn, surged 6.7 per cent earlier in the day after the company proposed the listing of Bharat FIH.
According to the draft papers filed with market regulator SEBI, Foxconn’s public issue would include a fresh issue of equity shares worth Rs 2,500 crore and an offer for sale (OFS) by existing shareholders worth Rs 2,500 crore by promoter group and Foxconn unit Wonderful Stars, the prospectus said.
Kotak Investment Banking, Citigroup Global Markets India, BNP Paribas and HSBC Securities, and Capital Markets India are the bankers to the issue.
Bharat FIH is an electronic manufacturing services provider in India and had a market revenue share of 15 per cent in FY21, according to the prospectus.
The company commenced operations in 2015 and has focused on manufacturing mobile phones. Since March 2021, the company has expanded into other services, including mechanics, electric vehicles, televisions and hearables.
Bharat FIH manufactures and assembles Xiaomi’s mobile phones in India. In FY19, FY20, and FY21 and the six months ended 30 September 2021, Xiaomi accounted for 87.81 per cent, 89.05 per cent, 94.24 per cent, and 96.13 per cent of their revenue from operations for these periods.
Bharat FIH’s IPO comes at a time Foxconn’s plant near Chennai will remain shut this week following protests sparked by a food poisoning incident, according to sources.
ALSO READ | MedPlus Health Makes Strong Debut, Lists At Over 30 Per Cent Premium
Top Headlines
