SEBI has approved Foxconn's Bharat FIH's IPO of 5,000 crore

14 Jun 2022 , 10:36 AM

Bharat FIH, a Foxconn Technology Group firm and a subsidiary of FIH Mobiles, has got approval from capital markets regulator SEBI to raise 5,000 crores through an Initial Public Offering (IPO).

According to the Draft Red Herring Prospectus (DRHP), Bharat FIH’s inaugural share sale consists of fresh issuance of shares worth 2,502 crores and an offer for sale of up to 2,502 crores by the promoter group and Foxconn unit Wonderful Stars.

Xiaomi and Nokia are also served by Bharat FIH. According to an update with the markets regulator on Monday, the business, which submitted its preliminary IPO papers with SEBI in December 2021, received its observations on June 10.

SEBI’s remarks imply that it has given the green light to the IPO. According to the draught documents, the proceeds of the new issuance will be used to pay the company’s capital expenditure requirements, including campus development, investment in its subsidiary, RSHTPL, to support working capital requirements, and general corporate objectives.

Wonderful Stars now owns 99.97 percent of the firm. Bharat FIH, originally Rising Stars Mobile India, is India’s largest Electronic Manufacturing Services (EMS) supplier, with a market revenue share of around 15% in the fiscal year 2021.

In addition to EMS services, the firm is developing capabilities to provide OEMs with a full, vertically integrated “one-stop solution” that includes product design and development, component production and sourcing, logistics, and after-sales services.

Other than mobile phones, the corporation has been growing into high-growth areas such as mechanics, electric vehicles, TVs, and hearables.