Foxconn arm files papers with Sebi to raise Rs 5000 crore
Bharat FIH, a subsidiary of FIH Mobiles and a Foxconn Technology Group company, has filed preliminary documents with markets regulator Sebi to raise over Rs 5,000 crore through an initial public offering (IPO).
The public issue comprises fresh issue of shares worth Rs 2,502 crore and an offer for sale of shares worth up to Rs 2,502 crore by promoter group and Foxconn unit Wonderful Stars, according to the draft red herring prospectus (DRHP). At present, Wonderful Stars holds 99.97 per cent stake in the company.
Bharat FIH makes devices for Xiaomi and Nokia.
Proceeds of fresh issue will be used for funding capital expenditure requirements of the company towards expansion of its existing campuses, investment in subsidiary, RSHTPL, to support working capital requirements and general corporate purposes.
Bharat FIH, formerly Rising Stars Mobile India, is the largest electronic manufacturing services (EMS) provider in India, with approximately 15 per cent market revenue share in financial year 2021.
In addition to EMS services, the company is building the capabilities to provide original equipment manufacturers (OEMs) with a comprehensive, vertically integrated “one-stop solution” comprising a range of original design manufacturer (ODM) services including product design and development, component manufacturing and sourcing, logistics, and after-sales services.