Bharat FIH IPO
Bharat FIH is the largest electronics manufacturing services provider in the country, and they have around 15% market share in FY21, in terms of reven...
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Last Updated: 14 August 2023 11:13 AM by 5Paisa
Hong Kong’s FIH Mobile Ltd's Indian subsidiary, Bharat FIH, plans to raise Rs. 50.04 billion via an initial public offering.
The offer comprises of a fresh issue of shares of up to Rs.25.02 billion and an offer for sale of shares up to Rs. 25.02 billion by promoter group and Foxconn unit Wonderful Stars.
Currently, Wonderful Stars holds 99.97% stake in the firm.
Citigroup Global Markets India, BNP Paribas, HSBC Securities and Capital Markets (India) are among the lead book runners for Bharat FIH's IPO.
Objective of the Bharat FIH IPO
The proceeds from the issue will be used for:
• funding capital expenditure requirements of the company towards expansion of its existing campuses,
• investment in subsidiary, RSHTPL
• to support working capital requirements
• general corporate purposes
Bharat FIH is the largest Electronic Manufacturing Services (EMS) provider in India, with approximately 15% market revenue share and more than twice the revenue of the second largest EMS provider in the country in 2021.
Bharat FIH is a subsidiary of FIH Mobile Limited (“FIH Mobile”), which is a leading manufacturing services provider for the mobile handset industry. FIH Mobile is a part of the Foxconn Technology Group, a Taiwan headquartered Fortune 30 group, which is the global leader in the EMS business with 22.7% share of global EMS operating revenue in 2020.
Additionally, to the EMS services, which mainly comprise manufacturing services, Bharat FIH is also building the capabilities to provide Original Equipment Manufacturers (OEMs), with a comprehensive, vertically integrated “one-stop solution” comprising a range of Original Design Manufacturing (ODM) services including product design and development, component manufacturing and sourcing, logistics, and after-sales services.
It is also the largest mobile phone manufacturing and assembly services provider to Xiaomi Technology India Private Limited (“Xiaomi”), which is the leader in the Indian smart phone industry with 27% and 26% market share by volume in 2021 and the six months ended 30 September 2021, respectively. In the same period, the company had a 39% and 50% share of Xiaomi’s mobile phone sales by volume.
The operations are held across three campuses based in the states of Andhra Pradesh and Tamil Nadu in India, each of which integrates manufacturing, warehousing, logistics and accommodation facilities.
| Particulars (in Rs. Crores) | FY21 | FY20 | FY19 |
|---|---|---|---|
| Revenue | 15854.9 | 26635.6 | 34345.4 |
| EBITDA | 386.9 | 693.3 | -26.9 |
| PAT | 161.9 | 389.7 | -26.9 |
| Particulars (in Rs. Crores) | FY21 | FY20 | FY19 |
|---|---|---|---|
| Total Assets | 8712.1 | 8623.6 | 8899.9 |
| Share Capital | 2380.9 | 2380.9 | 1665.9 |
| Total Borrowings | 0.00 | 0.00 | 1066.2 |
| Particulars (in Rs. Crores) | FY21 | FY20 | FY19 |
|---|---|---|---|
| Net cash generated from / (used in) operating activities | -76.1 | 1101.5 | -532.9 |
| Net cash from / (used in) investing activities | -163.4 | -171.7 | -532.9 |
| Net cash flow from / (used in) financing activities | -45.5 | -408.6 | 1341.7 |
| Net increase (decrease) in cash and cash equivalents | -285.1 | 521.2 | 1341.7 |
Peer Comparison
| Name of the Company | Total Income (in Rs. crores) | Basic EPS | NAV Rs. per share | PE | RoNW% |
|---|---|---|---|---|---|
| Bharat FIH Limited | 15,854.86 | 0.68 | 11.91 | NA | 5.71% |
| Dixon Technologies (India) Limited | 6,448.17 | 27.49 | 126.84 | 206.62 | 21.67% |
| Amber Enterprises India Limited | 3,030.52 | 24.96 | 490.71 | 131.02 | 21.67% |
Strengths
• Largest EMS provider in India by revenue market share, with the size, scale and competencies to pursue substantial growth opportunities in the EMS
• Availability of Performance Linked Incentives
• Long-term, strategic relationships with industry leading OEM customers
• Large-scale, high quality and state-of-the-art manufacturing and assembly capabilities
• In-house capabilities across the ODM value chain, enabling vertical integration
• Resilient, capital efficient business with stable working capital cycle
Risks
• Largest EMS provider in India by revenue market share, with the size, scale and competencies to pursue substantial growth opportunities in the EMS
• Availability of Performance Linked Incentives
• Long-term, strategic relationships with industry leading OEM customers
• Large-scale, high quality and state-of-the-art manufacturing and assembly capabilities
• In-house capabilities across the ODM value chain, enabling vertical integration
• Resilient, capital efficient business with stable working capital cycle
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FAQs
The price band of the Bharat FIH IPO is yet to be announced.
The Bharat FIH IPO open ___ and close ___ dates are yet to be announced.
The fresh issue comprises of shares up to Rs.25.02 billion and an offer for sale of shares up to Rs. 25.02 billion.
The allotment date of Bharat FIH IPO is yet to be announced.
The Bharat FIH listing date is yet to be announced.
The minimum lot size and investment required for the Bharat FIH IPO is yet to be announced.
The proceeds will be used for:
• funding capital expenditure requirements of the company towards expansion of its existing campuses,
• investment in subsidiary, RSHTPL
• to support working capital requirements
• general corporate purposes
To apply for the IPO, follow the steps given below
• Login to your 5paisa account and select the issue in the current IPO section
• Enter the number of lots and price at which you wish to apply for
• Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange
• You will receive a mandate notification to block funds in your UPI app
Bharat FIH is promoted by Wonderful Stars and FIH Mobile.
Citigroup Global Markets India, BNP Paribas, HSBC Securities and Capital Markets (India) are the lead managers to the issue.