Dixon Technologies Rs 600 crore IPO subscribed 78% on day 1 of bidding as institutional buyers flock

By: | Published: September 6, 2017 6:03 PM

Dixon Technologies Rs 600 crore IPO which opened today for subscription was subscribed 78.21% on the first day of bidding.

Dixon Tech IPO contains a fresh issue of Rs 60 crore and an offer for sale of up to 3,053,675 equity shares. (image: Reuters)

Dixon Technologies Rs 600 crore IPO which opened today for subscription was subscribed 78.21% on the first day of bidding. The bidding in the IPO will remain open for three days for three days which is from 6 September to 8 September. The quota reserved for qualified institutional buyers (6,79,264 shares) was subscribed 1.34 times, while shares reserved for non-institutional investors (5,09,188 shares) were subscribed 3.67%. The retail individual investors (11,88,105 shares) category was subscribed 78.18% at the end of day one of bidding. The initial public offer contains a fresh issue of Rs 60 crore and an offer for sale of up to 3,053,675 equity shares (including anchor portion of 1,018,027 equity shares). The technology firm is planning to spend the proceeds on capacity expansion and debt repayment.

IPO details

The company expects to raise Rs 60 crore from the primary round of equity sale and Rs 540 crore from offer for sale. “Post listing, 52% of Dixon will be held by promoters and friends, 8% by employees, 5% by Motilal Oswal and 35% will be with the public,” PTI reported citing Dixon Technologies MD Atul B Lall. The initial public offer of Dixon IPO has a price band of Rs 1,760-1,766 per share with a face value of Rs 10 each. The book running lead managers of the issue are IDFC Bank Limited, IIFL Holdings Limited, Motilal Oswal Investment Advisors Limited and YES Securities (India) Limited.

IPO proceeds

“In the primary raise, the money will be spent on setting up LED TV capacity in Tirupati, expansion of our backward integration of lighting business, debt repayment, IT infrastructure and the rest will be used for general corporate purposes,” MD Atul B Lall added. Dixon plans to repay a debt of Rs 22 crore, invest Rs 7.57 crore in setting up its seventh manufacturing unit for LED television in Tirupati. The company will use Rs 8.85 crore for producing parts of LED lights at its Dehradun plant.

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