Dixon Technologies (India) Ltd is engaged in manufacturing products in the consumer electronics like LED TVs, lighting products like LED bulb, tube light, CFL bulbs, a home application like washing machines and mobile phones market. It is also India’s leading Electronics manufacturer. The headquartered of the company in Noida, Uttar Pradesh. Dixon Technologies Ltd manufacture products for popular retail brands like Panasonic, Philips, Haier, Gionee, Surya Roshni, Reliance Retail, Intex Technologies, Mitashi, and Dish. In this post, we will check the Dixon Technologies IPO review and we will try to find out investment opportunities for our readers in this public issue.
About Dixon Technologies IPO :
- IPO opens on – September 06, 2017
- IPO closes on – September 08, 2017
- Face Value – Rs. 10 per equity share
- Issue Price – Rs.1760 – Rs.1766
- Issue Type – Book Built Issue IPO.
- Equity Shares Offered – 33,93,425 equity shares.
- Retail Allocation – 35%
- Equity Shares prior to the offer – 1,09,85,341 equity shares.
- Minimum Lot – 8 shares.
- Equity Shares after the offer – 1,13,25,091 equity shares.
- Issue Constitutes – 29.96%(Post offer paid-up Equity Share Capital).
- Issue Size – Around Rs. 599.27 cr (Market cap Rs.2000 cr)
- Listing Exchange – NSE and BSE.
- Draft Prospectus – CLICK HERE.
Objectives of the Issue :
- The proceeds from the Offer for Sale shall be received by the Selling Shareholders and Company shall not receive any proceeds from the Offer for Sale.
- Company proposes to utilize the Net Proceeds towards funding the following objects.
- Repayment/pre-payment, in full or in part, of certain borrowings availed by the Company.
- They will be setting up LED TV manufacturing unit at their Tirupati unit.
- Enhancing their backward integration system for their lighting products at Dehradun I unit.
- Upgradation of the information technology infrastructure of the Company.
- General corporate needs.
About The Company-
- The company started its operations in 1993, and 1994 commenced manufacturing and sales of consumer electronics such as Colour TVs.
- 6 top-class manufacturing units are strategically located at UP and Uttarakhand.
- Business segments include Consumer Electronics, Home Appliances, Lighting Solutions, Mobile Phones, and Reverse Logistics.
- Provide solutions in Reverse Logistics i.e repair and refurbishment services of set-top boxes, Mobile Phones and LED TV panels.
- Top 5 customers contributed for 82.32% of the Revenue.
- Leading Original Design Manufacturer (“ODM”) of lighting products, LED TVs and semi-automatic washing machines in India.
- Fully integrated end-to-end product and solution suite to original equipment manufacturers ranging from global sourcing, manufacturing, quality testing, packaging to logistics.
- In the process of setting up a new manufacturing facility in Tirupati, Andhra Pradesh.
Top 5 Customers of The Company :
- Panasonic Indian Pvt Ltd.
- Philips Lighting India Limited.
- Intex Technologies (I) Ltd.
- Reliance Retail Limited.
The promoter of the Company :
Sunil Vachani is the promoter And Executive Chairman of the Company. He has 43.97% pre-offer holding in the company.
Dixon Technologies IPO Review:
The IPO’s grey market premium or GMP is quoted at Rs. 390 – Rs. 400. But as a word of caution, we want to remind investors that our markets are already over-heated and this IPO is fully priced. So our Dixon Technologies IPO review stays with a NEUTRAL view on this public issue. Investors can use our last day IPO selection method before applying and if you invest, stay with a medium-term view.