Foxconn’s Bharat FIH gets Sebi nod for ₹5,000 cr IPO

Press Trust of India

NEW DELHI: Bharat FIH, a subsidiary of FIH Mobiles and a Foxconn Technology Group company, has received capital markets regulator Sebi’s go ahead to raise ₹5,000 crore through an initial public offering (IPO).

The initial share-sale of Bharat FIH comprises fresh issue of shares worth ₹2,502 crore and an offer for sale of up to ₹2,502 crore by promoter group and Foxconn unit Wonderful Stars, according to the draft red herring prospectus (DRHP).

Bharat FIH makes devices for Xiaomi and Nokia.

The company, which filed its preliminary IPO papers with Sebi in December 2021, obtained its observations on June 10, an update with the markets regulator showed on Monday.

In Sebi’s parlance, its observations implies its go ahead to float IPO. The 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.

At present, Wonderful Stars holds 99.97% stake in the company. Bharat FIH, formerly Rising Stars Mobile India, is the largest Electronic Manufacturing Services (EMS) provider in India, with approximately 15% market revenue share in 2020-21.

In addition to EMS services, it 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.