Politics News

Bharat FIH, Largest Makers of Xiaomi Phones in India, Files Rs 5,000-crore IPO

Bharat FIH IPO: Bharat FIH, a firm under the Foxconn Technology Group, has filed papers for its Initial Public Offering, or IPO, on Wednesday according to reports. Bharat FIH is a leading company in India in the manufacturing and services of handset and wireless communications sector and is responsible for making mobile phones for market leader Xiaomi. The papers have been filed with market regulator Sebi and is pending for approval now, the reports have said. Bharat FIH, a subsidiary of FIH Mobile Limited, will look to raise Rs 5,000 crore through its maiden public offer, as per the abovementioned report.

According to MoneyControl, people in the know, who chose to be annonymous, confirmed the report. They said that the IPO will be divided into two equal parts. “The IPO will comprise of a fresh issue component of Rs 2,500 crore and an OFS ( offer for sale component) of Rs 2,500 crore,” said one of the two persons who revealed the news to the media organisation. The other person confirmed the same.

The parent company of Bharat FIH, FIH Mobile Limited, is a listed form in Hong Kong. The Indian company is purely held by the promoter group. MoneyControl in its report said it has reviewed a copy of the Bharat FIH’s DRHP. According to this, the net proceeds of the IPO will be used for four main purposes. These include funding capital expenditure requirements towards up-gradation and expansion of existing campuses; investment in Subsidiary, RSHTPL, for financing its capital expenditure requirements; funding working capital requirements of the company; and for general corporate purposes.

According to the report, the investment bankers working on the Bharat FIH IPO include Kotak Mahindra Capital, Citi, and BNP Paribas, while Shardul Amarchand Mangaldas and S&R Associates are the legal advisors.

Bharat FIH did not immediately comment on the news, which comes amid an IPO boom across the country that has benefitted several companies which got listed at the stock market. The IPO gold rush is likely to be the reason behind Bharat FIH floating its offer.

“Since March 2021 we have been expanding our business into industries other than mobile phones, with a focus on high-growth industries that benefit from market tailwinds, including mechanics, electric vehicles, televisions, and hearables,” Bharat FIH was quoted by Monecontrol as saying in its DHRP.

“Our applications for PLIs for the mobile phone, telecom and networking products, and IT hardware industries have been approved in October 2020, October 2021, and July 2021,” it added.

“Given the significant under-penetration and increasing per capita usage of these products in India, the country’s total addressable EMS market is expected to grow to US$135 billion by Financial Year 2026 with a CAGR of 30.3% between Financial Years 2021 and 2026, giving us substantial growth opportunities to diversify into these new high-growth industries and provide new categories of customers with a range of service offerings, ” it said in its DHRP.

Read all the Latest News, Breaking News and Coronavirus News here.

Leave a Reply

Your email address will not be published. Required fields are marked *