Foxconn's Indian subsidiary Bharat FIH gets SEBI's approval for IPO

Taiwanese giant's Indian subsidiary Bharat FIH Ltd. has received the Indian markets regulator SEBI's approval to float its Rs 5,000 crore IPO.

Hon Hai Technology or Foxconn Group is the world's largest electronics manufacturer. The company has established R&D and manufacturing centers in other markets around the world including China, India, Japan, Vietnam, Malaysia, the Czech Republic, the U.S., and more. With a focus on research and development, the company owns more than 54,253 patents.

Rajesh Export's subsidiary to invest Rs 24,000, in a display FAB facility, read more.

Of these R&D facilities, Bharat FIH is a subsidiary of FIH Mobile Ltd, which is a subsidiary of the Foxconn group. It is India's leader in manufacturing and services of handsets and wireless communications. The company started operations in 2015 and today the company has 25,000+ employees. The company produces mobile phones, mechanics, EVs, televisions, hearables, telecom and networking products & IT Hardware. It services clients like Xiaomi, Nokia, Apple, VU Technologies, ZTE Telecom, and boAt.

free ebook

The issue comprises Rs 2,502 crores of fresh issue and a similar amount as OFS from promoter Wonderful Stars which holds 99.97% of the company. The company filed its draft IPO papers in December 2021 and was approved on June 10th.

75% of the proceeds will be reserved for Qualified Institutional Buyers and 15% for Non-Institutional Investors, leaving only 10% of the issue for retail investors.

According to the DRHP, the proceeds from the issue will be used for capital expenditure, expansion of existing campuses, investing in its subsidiary RSHTPL, working capital requirements, and general corporate purposes.

Fundamentally, the company is the largest provider of Electronic Manufacturing Services (EMS) in India with approximately 15% market revenue share in FY21. Moreover, the company is setting up capabilities to provide Original Equipment Manufacturing (OEM) services as well.

Kotak Mahindra Capital, Citigroup Global Markets, BNP Paribas, and HSBC are acting as the book-running lead managers. The details of the IPO regarding date, lot size, price range, and all other relevant information will be published at a later date.

Article by Aman Agarwal.

This news piece is brought to you in association with


Search Anything...!