The electronic manufacturing services (EMS) firm Dixon Technologies (India) expects to raise about Rs 600 crore from its IPO which is opening tomorrow, 6 September. We take a look at 4 key things about the issue.
The electronic manufacturing services (EMS) firm Dixon Technologies (India) expects to raise about Rs 600 crore from its IPO which is opening tomorrow, 6 September. Sunil Vachani is the promoter of the Company and has 43.97% pre-offer holding in the company. He is also the Executive Chairman of Dixon. The public issue will open for two days starting from 6 September to 8 September. The technology firm is planning to spend the proceeds on capacity expansion and debt repayment.
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 will open on September 6 and close on September 8 with a price band of Rs 1,760-1,766 per share with a face value of Rs 10 each.
“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 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.
The revenue of Dixon Technologies jumped by about 82% to Rs 2,456 crore at the end of 2016-17, from Rs 1,344 crore a year ago, aided by the mobile phone segment. Dixon Technologies had registered about 20 % increase in its consolidated profit at Rs 50.4 crore in 2016-17, from Rs 42 crore in the previous fiscal.
Dixon Technologies (India) Ltd is a home grown 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. Dixon Technologies also provides solutions in reverse logistics i.e. repair and refurbishment services of set top boxes, mobile phones and LED TV panels. Dixon has six manufacturing facilities at present. Three plants are located in Noida and Dehradun each.