Foxconn’s India arm files for ₹5k cr IPO

MUMBAI: Taiwanese mobile phone maker Foxconn’s Indian unit Bharat FIH Ltd filed draft papers for a proposed public listing in India to raise as much as ₹5,003.8 crore on Wednesday. The proposed initial share sale aims to raise ₹2,501.9 crore of fresh capital. In addition, a Foxconn unit holding shares of Bharat FIH will divest a portion of its stake to raise an equal amount.

The fresh capital will be used to upgrade and expand facilities, invest in a subsidiary to finance capital expenditure needs, fund working capital requirements, and for other corporate purposes, according to the draft prospectus filed with the Securities and Exchange Board of India.

The maker of Xiaomi brand of mobile phones claims to be the largest electronics manufacturing services provider in India, with about 15% revenue market share in the financial year ended March 31, and more than twice the revenue of the second-largest EMS provider in the country, it said citing a Frost & Sullivan report, in its draft prospectus. It did not name the second-largest EMS provider. EMS refers to companies that make electronic components and assemblies for original equipment manufacturers.

“We are the largest mobile phone manufacturing and assembly services provider to Xiaomi Technology India Pvt. Ltd, which is the leader in the Indian smartphone industry with 27% and 26% market share by volume in the financial year 2021 and the six months ended 30 September. In those periods, we had a 39% and 50% share of Xiaomi’s mobile phone sales by volume,” it said.

Foxconn said that since March this year, it has been expanding its India business into industries other than

mobile phones, with a focus on high-growth industries that benefit from market tailwinds such as mechanics, EVs, televisions and hearables. “Some of these industries are expected to benefit from regulatory support such as PLIs,” it said.

The company said that given the significant under penetration and growing per capita usage of these products in India, the country’s total addressable EMS market is expected to grow to $135 billion by the financial year 2026, with an average annual growth of 30.3% in the five years through the financial year 2026.