Dixon Technologies IPO sails through on Day 2

The offer comprises fresh issue aggregating up to Rs 60 crore besides an offer for sale of up to 30,53,675 shares by certain existing shareholders. NSEBSESurya RoshniLoading data…

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    ChartsValuation & Peer ComparisonCommunity BuzzPEER COMPANIES NEW DELHI: The Rs 600-crore initial public offering (IPO) of Noida-based consumer electronics manufacturer Dixon Technologies got fully subscribed on Day 2 of the bidding on Thursday.

    The issue received bids for just about 24 lakh shares as against the total issue size of 23,76,557 shares.

    The qualified institutional buyers (QIBs) quota and retail individual investors were subscribed fully, while that of non institutional investors was subscribed 5 per cent only.

    The shares are up for sale in Rs 1,760-1,766 price band. The offer comprises fresh issue aggregating up to Rs 60 crore besides an offer for sale of up to 30,53,675 shares by certain existing shareholders.

    The company, which caters to Panasonic, Philips Lighting India, Haier Appliances, Gionee, Surya Roshni, Reliance Retail and Intex Technologies, among others, on Tuesday raised Rs 179.78 crore from anchor investors, including Goldman Sachs India and Kuwait Investment Authority Fund.

    The Noida-based company has two broad businesses: Original equipment manufacturers (OEM) business that accounts for 78 per cent of FY17 revenue, and original design manufacturing (ODM) that accounts for the rest. Consumer electronics makes up for about a third of its revenue. LED TVs and home appliances makes up for 8 per cent and semi-automatic washing machines, lighting products contribute another 22 per cent to the company’s revenue. A third of revenues comes from LED bulbs, tube lights and mobile phones. Repair business makes up for a marginal 3 per cent revenue.

    Analysts said that the issue may not offer huge listing gains, but one looking for mid to long term investment can consider it.

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