Bharat FIH, Taiwan-based Foxconn's India arm, has filed draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise Rs 5000 crore via an initial public offering (IPO).
BNP Paribas, Citi and Kotak Mahindra Bank are the investment banker working on the IPO while S&R Associates along with Shardul Amarchand Mangaldas are Bharat FIH’s legal advisors.
“The IPO will comprise of a fresh issue component of Rs 2500 crore and an OFS (offer for sale component) of Rs 2500 crore,” a source in the know of developments was quoted in a report by Moneycontrol.
Bharat FIH, the largest mobile phone manufacturer for Chinese giant Xiaomi, is reportedly planning to use the net proceeds of the IPO for several purposes including funding the capital expenditure requirement so that they can upgrade and expand their current facilities and also finance their working capital needs.
Bharat FIH has been one of the key beneficiaries of the central government’s production-linked incentive (PLI) scheme, which was launched to boost the local manufacturing of various products.
Since October 2020, the company has received PLI approvals for mobile phones, telecom and networking products among others.
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