Foxconn's Bharat FIH Gets SEBI Nod For Rs 5,000-Crore IPO
The Bharat FIH IPO will see the smartphone maker issue fresh stock worth Rs 2,502 crore and raise an equal amount via an offer for sale.
Bharat FIH, a subsidiary of FIH Mobiles and a Foxconn Group company, has received SEBI's approval to raise Rs 5,000 crore via an initial public offering.
The Bharat FIH IPO will see the smartphone maker issue fresh stock worth Rs 2,502 crore and raise an equal amount via an offer for sale by promoter group and Foxconn unit Wonderful Stars, according to the draft red herring prospectus filed with Securities and Exchange Board of India.
Wonderful Stars holds 99.97% stake in the company.
The company, which makes devices for Xiaomi and Nokia in India, filed its draft IPO papers in December 2021. It received SEBI's observations on June 10. Proceeds of the initial share sale will be used for capital expenditure, expansion of existing campuses, working capital requirements and general corporate purposes.
Bharat FIH, formerly Rising Stars Mobile India, is the largest electronics manufacturing services provider in the country, with approximately 15% market revenue share in fiscal ended March 2021. Additionally, it is also building its capabilities to provide original equipment manufacturers a "one-stop solution" for product design and development, component manufacturing and sourcing, logistics, and after-sales services.
It has also been expanding its business into high-growth industries other than mobile phones, including mechanics, electric vehicles, televisions and hearables.