Dixon Technologies (India) IPO subscribed 77%

Receives bids for 18.33 lakh shares

The initial public offer (IPO) of Dixon Technologies (India) received bids for 18.33 lakh shares compared with 23.76 lakh shares on offer on the first day of bidding for the IPO, data on NSE showed. The IPO was subscribed 77% on day one. The price band for the IPO was fixed at Rs 1,760-1,766 per share. The IPO opened for bidding today, 6 September 2017 and closes on 8 September 2017.

Ahead of the IPO, the IPO committee of the board of directors of Dixon Technologies (India) yesterday, 5 September 2017, allocated 10.18 lakh shares to 15 anchor investors at a higher end of IPO price band at Rs 1,766 per share aggregating to Rs 179.78 crore.

The issue comprises of a fresh issue of equity shares aggregating up to Rs 60 crore by the company and an offer for sale (OFS) of up to 30.53 lakh shares by the selling shareholders including promoters.

Out of Rs 60 crore, the company will spend Rs 22 crore for repayment/pre-payment of certain borrowing, Rs 7.6 crore for setting up a unit for manufacturing of Led TVs at the Tirupati facility, Rs 8.86 crore to finance the enhancement of backward integration capabilities in the lighting products vertical at Dehradun facility, Rs 5.3 crore for up-gradation of the information technology infrastructure of company and rest for general corporate purpose.

Dixon Technologies' consolidated net profit rose 18.34% to Rs 50.38 crore on 76.81% rise in net sales to Rs 2456.76 crore in the year ended 31 March 2017 (FY 2017) over FY 2016.

Dixon Technologies (India), promoted by Sunil Vachani, is the largest home-grown design-focused and solutions company engaged in manufacturing products in the consumer durables, lighting and mobile phones markets in India.

The company offers a fully integrated end-to-end product and solution suite to original equipment manufacturers (OEMs) ranging from global sourcing, manufacturing, quality testing and packaging to logistics. It also a leading original design manufacturer (ODM) of lighting products, Led TVs and semi-automatic washing machines in India

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