Dixon Technologies(India) Limited’s Initial Public Offer opens on September 06, 2017 with price band of Rs. 1760.00 – Rs. 1766.00per equity share of face value of Rs. 10 each

(From L to R): Mr. Gopal Jagwan, CFO, Dixon Technologies (India) Ltd., Mr. Sunil Vachani, Executive Chairman, Dixon Technologies (India) Ltd., Mr Atul B Lall, Managing Director, Dixon Technologies (India) Ltd., Mr. Ashish Kumar, Company Secretary, Dixon Technologies (India) Ltd., Mr. Girish Nadkarni, Motilal Oswal.- Photo By Sachin Murdeshwar GPN NETWORK(From L to R): Mr. Gopal Jagwan, CFO, Dixon Technologies (India) Ltd., Mr. Sunil Vachani, Executive Chairman, Dixon Technologies (India) Ltd., Mr Atul B Lall, Managing Director, Dixon Technologies (India) Ltd., Mr. Ashish Kumar, Company Secretary, Dixon Technologies (India) Ltd., Mr. Girish Nadkarni, Motilal Oswal.- Photo By Sachin Murdeshwar GPN NETWORK
(From L to R): Mr. Gopal Jagwan, CFO, Dixon Technologies (India) Ltd., Mr. Sunil Vachani, Executive Chairman, Dixon Technologies (India) Ltd., Mr Atul B Lall, Managing Director, Dixon Technologies (India) Ltd., Mr. Ashish Kumar, Company Secretary, Dixon Technologies (India) Ltd., Mr. Girish Nadkarni, Motilal Oswal.- Photo By Sachin Murdeshwar GPN NETWORK

(From L to R): Mr. Gopal Jagwan, CFO, Dixon Technologies (India) Ltd., Mr. Sunil Vachani, Executive Chairman, Dixon Technologies (India) Ltd., Mr Atul B Lall, Managing Director, Dixon Technologies (India) Ltd., Mr. Ashish Kumar, Company Secretary, Dixon Technologies (India) Ltd., Mr. Girish Nadkarni, Motilal Oswal.- Photo By Sachin Murdeshwar GPN NETWORK

  • The IPO comprises of a fresh issue aggregating up to Rs 600 million by the Company and an offer for sale by certain existing shareholders.

  • The offer for sale consists of up to 3,053,675 equity shares of face value of Rs. 10 each (“Equity Shares”).

  • The minimum Bid lot is 8 Equity Shares and in multiples of 8 Equity Shares thereafter.

  • The Floor Price is 176.00 times of the face value and the Cap Price is 176.60 times of the face value.

  • Bid/Offer Opening Date – September 06, 2017 and Bid/Offer Closing Date –September 08, 2017.

Mumbai, August 31, 2017 (GPN) : Dixon Technologies (India) Limited (the “Company”), the largest Indian home grown design-focused and solutions companyand leading Original Design Manufacturer (“ODM”) of lighting products, LED TVs and semi-automatic washing machines in India1will be launching its initial public offer (“IPO” or the “Offer”) which is scheduled to open on September 6, 2017 and close on September 8, 2017 with a price band of Rs. 1760 – Rs.1766 per equity share of face value of Rs. 10 each of the Company (the “Equity Shares”). The Anchor Investor Bid/Offer Period shall be September 05, 2017, being one working day prior to the Offer Opening Date.

The Offer comprises of a fresh issue of Equity Shares aggregating up to Rs 600 million by the Company and an offer for sale of up to 3,053,675 Equity Shares by Selling Shareholders. The Offer for Sale component of the Offer consists of up to 634,368 Equity Shares by Sunil Vachani, up to 1,446,201 Equity Shares by Indian Business Excellence Fund I and up to 495,313 Equity Shares by Indian Business Excellence Fund, and up to 477,793 equity shares by Atul B. Lall, Kamla Vachani, Geeta Vaswani, Sunita Mankani and Shobha Sippy collectively.

This Offer is being made in terms of Rule 19(2)(b)(ii) of the Securities Contracts (Regulation) Rules, 1957, as amended, (the “SCRR”) for at least such percentage of the post-Offer paid-up Equity share capital of the Company that will be equivalent to Rs. 4,000 million calculated at the Offer Price, such that the post-Offer capital of  the Company calculated at the Offer Price is more than Rs. 16,000 million but less than or equal to Rs. 40,000 million. The Offer is being made through the Book Building Process, in compliance with Regulation 26(1) of the SEBI ICDR Regulations wherein 50% of the Offer shall be allocated on a proportionate basis to Qualified Institutional Buyers (“QIBs”) (the “QIB Portion”), provided that the Company may, in consultation with the BRLMs, allocate up to 60% of the QIB Portion to Anchor Investors, on a discretionary basis (the “Anchor Investor Portion”), out of which one-third shall be reserved for domestic Mutual Funds only, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price. Further, 5% of the QIB Portion (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only. The remainder shall be available for allocation on a proportionate basis to QIBs and Mutual Funds, subject to valid Bids being received from them at or above the Offer Price.

Further, not less than 15% of the Offer will be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Offer will be available for allocation to Retail Individual Bidders, in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price.

All potential Bidders, other than Anchor Investors, are required to mandatorily utilise the Application Supported by Blocked Amount (“ASBA”) process by providing details of their respective bank account which will be blocked by the Self Certified Syndicate Banks (“SCSBs”), to participate in the Offer.

The Net Proceeds from the fresh issue component of the Offer will be utilised towards funding (i) repayment/pre-payment, in full or in part, of certain borrowings availed by the Company, (ii) setting up a unit for manufacturing of LED TVs at the Tirupati Facility, (iii) enhancement of their backward integration capabilities in the lighting products vertical at  the Dehradun I Facility, (iv) upgradation of the information technology infrastructure of the Company and (v) general corporate purposes

IDFC Bank Limited, IIFL Holdings Limited, Motilal Oswal Investment Advisors Limited and Yes Securities (India) Limited are the Book Running Lead Managers (“BRLMs”) to the Offer. The Registrar to the Offer is Karvy Computershare Private Limited.

The Equity Shares of Dixon Technologies (India) Limited are proposed to be listed on the BSE Limited and National Stock Exchange of India Limited.

 

About Dixon Technologies (India) Limited:

Dixon Technologies (India) Limited (“Dixon”) is the largest home grown design-focused and solutions company engaged in manufacturing products in the consumer durables, lighting and mobile phones markets in India (Source: Frost & Sullivan Report). Dixon’s diversified product portfolio includes (i) consumer electronics like LED TVs, (ii) home appliances like washing machines, (iii) lighting products like LED bulbs and tubelights, downlighters and CFL bulbs and (iv) mobile phones. They also provide solutions in reverse logistics i.e. repair and refurbishment services of set top boxes, mobile phones and LED TV panels. As per the Frost & Sullivan Report, Dixon is the leading manufacturer of lighting products of CFL, LED bulbs, LED TVs and semi-automatic washing machines in India. Their key customers include Panasonic India Private Limited, Philips Lighting India Limited, Haier Appliance (I) Pvt. Ltd., Gionee, Surya Roshni Limited, Reliance Retail Limited, Intex Technologies (I) Ltd., Mitashi Edutainment Pvt. Ltd., Dish Infra Services Private Limited.

Dixon is a fully integrated end-to-end product and solution suite to original equipment manufacturers (“OEMs”) ranging from global sourcing, manufacturing, quality testing and packaging to logistics. Dixon is also a leading Original Design Manufacturer (“ODM”) of lighting products, LED TVs and semi-automatic washing machines in India (Source: Frost & Sullivan Report). As an ODM, they develop and design products in-house at their R&D centre. They manufacture and supply these products to well-known companies in India who in turn distribute these products under their own brands.

Defined terms used in this press release, not specifically defined hereunder shall have the meaning ascribed to such term in the red herring prospectus dated August 23, 2017 filed by the Company with the Registrar of Companies, Uttar Pradesh and Uttarkahand at Kanpur, the Securities and Exchange Board of India, BSE Limited and National Stock Exchange of India Limited.

About the Author

Sachin Murdeshwar
Sachin Murdeshwar is a Sr.Journalist and Columnist in several Mainline Newspapers and Portals.He is an ardent traveller and likes to explore destinations to the core.

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