Dixon Technologies, a consumer electronics and lighting product manufacturer, has received market regulator Sebi’s approval to raise an estimated Rs 600 -650 crore through initial public offering. The company had filed draft papers with Sebi to float an IPO in May and got ‘observation’ from the regulator on July 26, as per the latest update with Securities and Exchange Board of India (Sebi).
Dixon’s public issue comprises fresh issue of shares worth Rs 60 crore and an offer for sale of up to 3,753,739 equity scrips by the existing shareholders. According to sources, the company is targeting to raise Rs 600-650 crore through the initial public offering.
Proceeds from the issue will be utilised for setting up a unit for manufacturing of LED TVs at the Tirupati facility, enhancement of backward integration capabilities in the lighting products vertical at Dehradun facility and upgradation of the information technology infrastructure.
Besides, the funds will also be used for repayment of loans and for general corporate purposes. IDFC Bank, IIFL Holdings, Motilal Oswal Investment Advisors and Yes Securities are the book running lead managers to the issue.