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Business News/ Market / Stock-market-news/  Dixon Technologies looks to raise Rs600 crore from IPO starting 6 September
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Dixon Technologies looks to raise Rs600 crore from IPO starting 6 September

The initial public offer (IPO) of Dixon Technologies will have a price band of Rs1,760-1,766 per share with a face value of ₹10 each

Dixon Technologies plans to spend the proceeds from the share sale on capacity expansion and debt repayment.Premium
Dixon Technologies plans to spend the proceeds from the share sale on capacity expansion and debt repayment.

New Delhi: Electronic manufacturing firm Dixon Technologies (India) expects to raise Rs600 crore from its initial public offer (IPO) due on 6 September and plans to spend the proceeds on capacity expansion and debt repayment.

“In the primary raise, the money will be spent on setting up LED TV capacity in Tirupati, expansion of our backward integration of lighting business, debt repayment, IT infrastructure and the rest will be used for general corporate purposes," Dixon Technologies managing director Atul B. Lall told reporters.

The company expects to raise Rs60 crore from the primary round of equity sale and Rs540 crore from offer for sale. “Post listing, 52% of Dixon will be held by promoters and friends, 8% by employees, 5% by Motilal Oswal and 35% will be with the public," Lall said.

The IPO will open on 6 September and close on 8 September with a price band of ,760-1,766 per share with a face value of 10 each.

Dixon has six manufacturing facilities at present. Three plants are located in Noida and Dehradun each.

Dixon plans to repay debt of Rs22 crore, invest Rs7.57 crore in setting up its seventh manufacturing unit for LED television in Tirupati.The company will use Rs8.85 crore for producing parts of LED lights at its Dehradun plant.

The company is electronic contract manufacturer for Panasonic India, Philips Lighting India, Intex technologies, Gionee and Surya Roshini, among others.

Dixon had registered about 20% increase in its consolidated profit at Rs50.4 crore in 2016-17, from Rs42 crore in 2016-17.

The revenue of Dixon jumped by about 82% to Rs2,456 crore at the end of 2016-17, from Rs1,344 crore a year ago, aided by the mobile phone segment.

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Published: 04 Sep 2017, 08:20 PM IST
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