The IPO of Dixon Technologies, a manufacturer of consumer electronics and lighting products, was subscribed 4.25 times on the second day of bidding on Thursday.
The initial public offering (IPO) of Dixon Technologies, a manufacturer of consumer electronics and lighting products, was subscribed 4.25 times on the second day of bidding on Thursday. The IPO, which aims to raise up to Rs 600 crore, received bids for 1,01,07,632 shares against the total issue size of 23,76,557 shares, data available with the NSE showed. The portion set aside for qualified institutional buyers (QIBs) was oversubscribed 8.93 times, non-institutional investors 31% and retail investors 3.27 times.
The public issue consists of fresh issue of Rs 60 crore and an offer for sale of up to 30,53,675 equity shares. Till Wednesday, the IPO was subscribed 78%. A day before the IPO, Dixon Technologies raised nearly Rs 180 crore from anchor investors. The company will use the proceeds from the issue for setting up a unit for manufacturing LED TVs at its Tirupati facility; enhancement of backward integration capabilities in the lighting products vertical at Dehradun facility and upgradation of the information technology infrastructure; for repayment of loans; and for general corporate purposes.
Dixon Technologies is a design-focused and solutions company engaged in manufacturing products in the consumer durables, lighting and mobile phones markets in India. The company is an electronic contract manufacturer for Panasonic India, Philips Lighting India, Intex technologies, Gionee and Surya Roshini, among others. It also provides solutions in reverse logistics i.e. repair and refurbishment services of set top boxes, mobile phones and LED TV panels.