India's PE-backed Dixon Technologies files for IPO

The company will issue an undisclosed number of new shares to raise INR600 million ($9.3 million), according to a prospectus, while existing shareholders including MOPE will sell up to 3.75 million shares. Pricing has not been announced.

MOPE will exit the bulk of its holding, selling 2.6 million of its 3.3 million shares. The firm currently holds a 30% stake in the company, having invested INR400 million in 2008 through its first India Business Excellence Fund.

Dixon Technologies plans to use INR220 million of the IPO proceeds for debt repayment. Another INR76 million will be used to set up a unit for manufacturing LED TVs at its primary facility, with INR89 million planned for upgrades to its lighting products factory and INR53 million to improve the company’s information technology infrastructure. 

Founded in 1993 as Dixon Utilities & Exports, Dixon Technologies claims to be India’s largest manufacturer of consumer durables, lighting and mobile phones, and partners with international brands such as Panasonic, Philips, and Haier, and Indian brands such as Surya Roshi and Reliance.

The company’s products include consumer electronics, home appliances, lighting solutions such as compact fluorescent and LED light bulbs, and mobile phones. It also provides appliance repair and refurbishment services.

For the year ended March 2016, the company reported revenue of INR13 billion, up from INR11 billion the year before. Over the same period, net profit grew from INR98 million to INR365 million.

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• Topics
• South Asia
• Industrials
• Technology
• IPO
• India
• manufacturing
• Motilal Oswal Private Equity
• Exit