Consumer electronics and lighting products maker Dixon Technologies (India) Ltd. will make its stock market debut on Monday after raising Rs 600 crore in its initial public offer, most of which will go to investors.
The company sold 34 lakh shares at Rs 1,766 apiece in the IPO that was subscribed 118 times. It raised Rs 540 crore in an offer for sale by promoters led by Sunil Vachani and two private equity funds of Motilal Oswal Financial Services Ltd. The rest came through a fresh issue.
Qualified institutional buyers and high net worth individuals put in bids for 135 and 346 times the shares on offer, respectively. The portion reserved for retail buyers was subscribed 10.6 times. At the issue price, Dixon Technologies commands a market capitalisation of Rs 2,000 crore, according to BloombergQuint’s calculations.
The Rs 60 crore the company raised by issuing new stock will be used to repay debt, set up an LED manufacturing unit, enhance lighting products vertical, upgrade information technology infrastructure and for general corporate purposes.
Financial Highlights
- The consolidated net worth of the company stood at Rs 198 crore as of March.
- Dixon’s total consolidated revenue increased at a compounded annual growth rate of 34 percent over the past five years, while its profit rose 78 percent.
- The company has a total debt of Rs 65 crore, with its debt-to-equity ratio at 0.3 times as of March 31.
- Earnings per share at the upper end of the price band stands at Rs 44.5, after issuing fresh shares.
- At the upper band, it will trade at 39.7 times its earnings for the year to March, according to data compiled by BloombergQuint.
The company has no listed competitor as it generates revenue from various business segments.
Motilal Oswal, through its two private equity arms India Business Excellence Fund and IBEF - I, made 15-fold gains on the investment, nine years after it first picked up stake in the company.
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