iPhone maker Foxconn Technology’s India unit has filed draft IPO paper for a Rs 5,000 crore e public issue. Foxconn’s public issue would include a fresh issue of equity shares worth Rs 2,500 crore and an offer for sale (OFS) by existing shareholders worth Rs 2,500 crore, it said in the draft papers filed with market regulator SEBI today. Bharat FIH, Foxconn’s India arm is looking to raise Rs 5,003.8 crore from the public issue, where Wonderful Stars, one of the promoters of the company, will sell its stake. Foxconn is a partner for global technology leaders such as Apple, Cisco, Dell, Lenovo, Microsoft and Sony, among others.
Foxconn IPO will have a 75% reservation for Qualified Institutional Buyers (QIB) while 15% of the portion will be reserved for Non-institutional Investors (NII). This would leave only 10% of the entire issue for retail investors. Foxconn plans to use the funds raised through the fresh issue to fund capital expenditure requirements of the company towards upgradation and expansion of their existing campuses. The company also plans to invest in their subsidiary RSHTPL, for financing its capital expenditure requirements, and funding working capital requirements.
Bharat FIH, the India unit of Foxconn, has a 15% market revenue share in the electronics manufacturing sector. Bharat FIH provides manufacturing and assembly services for Xiaomi’s mobile phones in India. In financial years 2019, 2020 and 2021 and the six months ended 30 September 2021, Xiaomi accounted for 87.81%, 89.05%, 94.24% and 96.13% of their revenue from operations for these periods.
Kotak Mahindra Capital, Citigroup Global Markets, BNP Paribas, and HSBC Securities and Capital Markets, are the book running lead managers to the issue.