Dixon Technologies India Pvt Ltd (formerly known as Dixon Utilities and Exports Pvt Ltd) has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO).
The IPO consists of a fresh issue of shares worth Rs 0.6 billion and an offer for sale (OFS) of 3.75 million shares by promoters and existing investor Motilal Oswal Private Equity (MOPE) Investment Advisors Pvt Ltd.
The PE firm will sell 2.64 million shares through its Business Excellence Fund and India Business Excellence Fund-I.
Dixon Technologies will use the IPO proceeds for repaying certain borrowings, setting up an LED TV manufacturing unit at Tirupati, enhancing backward integration capabilities in the lighting products vertical at Dehradun I facility, upgrading information technology infrastructure and for other general corporate purposes, according to the draft documents.
It competes with companies such as Jabil Circuit India Pvt Ltd, SFO Technologies Pvt Ltd, Elin Electronics Ltd, Rangsons Electronics Pvt Ltd and Amara Raja Electronics Ltd, among others. The company had a consolidated net profit of Rs 0.4016 billion for the nine months ended 31 December 2016.
IDFC Bank, IIFL Holdings, Motilal Oswal Investment Advisors and Yes Securities are book-running lead managers for the IPO while Khaitan & Co is the legal counsel to the IPO. Dhir & Dhir Associates is representing the promoters.
Other listed companies in the segment include Centum Electronics Ltd, MIC Electronics Ltd and PG Electroplast Ltd.
By Baishakhi Dutta