Bharat FIH IPO

Bharat FIH limited is India’s leading Electronic Manufacturing Services (EMS) company with roughly 15% market revenue share in Fiscal Year 2021. Bharat FIH IPO will hit the market in April 2021.

About Bharat FIH

As per the F&S Report, they have more than twice the turnover of the nation ‘s second biggest EMS company in Financial Year 2021.

They are developing skills supply Original Equipment Manufacturers, who are their brand-owning customers, with a thorough, perpendicularly integrated “one-stop solution” that includes product design and development, component production and sourcing, supply chain, and after-sales assistance, in regards to their EMS services, which primarily consist of manufacturing services.

Their service solutions are designed to help their customers cut manufacturing costs, enhance supply chain management, reducing operating depreciation and product completion time, and meet their time-to-market, time-to-volume, and time-to-money goals.

Business

They’ve been concentrating on mobile phone manufacture since 2015. With a 23 percent market revenue share in 2021, they are India’s leading EMS provider to the mobile phone industry.

Xiaomi Technology India Private Limited (“Xiaomi”), which is the leading in the Indian smart phone sector with a market share of 27 percent by volume in 2021, is their largest mobile phone production and assembly solutions firm.

They had a 39 percent and 50 percent volume share of Xiaomi’s mobile phone sales during those times. They’ve been diversifying its business outside mobile phones since March 2021, with an emphasis on high-growth sectors that advantage from market tailwinds, such as mechanics, electric vehicles, televisions, and hearables.

Operations

Their operations are spread across three locations in the Indian states of Andhra Pradesh and Tamil Nadu, each of which includes production, storage, transportation, and lodging. There are 94 production lines on their campuses, including 29 surface mount technology lines, 35 assembly lines, and 30 sub-assembly mechanics lines.

Their campuses employ nearly 25,000 people, with about 85 percent of them being women, and they provide housing for the bulk of them on or near their campuses.

Their product research and development teams support business activities, such as a recently opened R&D centre at the Indian Institute of Technology (Madras) Research Park. Their R&D expertise will allow them to provide unique EMS and ODM services to their clients.

Bharat FIH IPO

Bharat FIH Limited, headquartered in Mumbai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 5,003.8 crores on 20 December 2021.

The offer includes a fresh issue of INR 2,501.9 crore and there is offer for sale (OFS) of 2,501.9 crore value equity shares by the promoters mentioned in the DRHP. They are not looking for any Pre-IPO placement in this issue.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
	30-Sep-21	31-Mar-21	31-Mar-20	31-Mar-19
Total Assets	8,713.20	8,712.09	8,623.15	8,899.91
Total Revenue	10,169.83	15,906.66	26,669.33	34,392.37
Profit After Tax	89.76	161.86	389.74	(223.13)

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	0.68	0.68	3
Financial Year 2020	2.08	2.08	2
Financial Year 2019	(1.57)	(1.57)	1
Weighted Average	0.77	0.77
30 Sep. 2021	0.37	0.37

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

The following are among the qualitative elements that contribute into determining the Offer Price:

• The biggest EMS provider in India in terms of revenue market share, with the size, scale, and competences to pursue significant EMS market growth possibilities.
• PLIs are available.
• Partnerships with industry-leading OEM clients that are long-term and strategic.
• Production and assembly abilities that are large-scale, high-quality, and cutting-edge.
• Vertical integration is enabled by in-house skills throughout the ODM value chain.
• Strong research and development resources can be used to drive innovation.
• A business that is resilient, capital sustainable, and has a predictable working capital cycle.
• Solid leadership expertise with a track record of creating profitable expansion.
• Powerful parentage with a worldwide leadership team and seasoned leadership.

Peer Comparison

S. No.	Face Value	Company Name	PE
1	2	Dixon Technologies Limited	206.62
2	10	Amber Enterprises India Limited	131.02

Note

1. On December 10, 2021, the closing BSE price of these equity shares was retrieved from the BSE portal.
2. All of the financial data for the listed industry peers given above is on a consolidated basis (unless otherwise stated) and comes from the firm’s annual results for the fiscal year ending March 31, 2021.

Bharat FIH IPO Details

IPO Opening Date	April 2021
IPO Closing Date	April 2021
Issue Type	Book Building
Face Value	10 per share
IPO Price	0 to 0 per equity share
Market Lot	–
Min Amount	–
Listing At	BSE, NSE
Issue Size	5,003.8 Crore
Fresh Issue	2,501.9 Crore
Offer for Sale	2,501.9 Crore

Bharat FIH IPO Date

Bharat FIH IPO opening date is April 2021, and the closing date is April 2021. The Bharat FIH IPO issue may list in April 2021.

IPO Opening Date	April 2021
IPO Closing Date	April 2021
Basis of Allotment Date	April 2021
Initiation of Refunds	April 2021
Credit of Shares to Demat Account	April 2021
IPO Listing Date	April 2021

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	75	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	10	Minimum 1 lot based on availability

Bharat FIH IPO Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Bharat FIH IPO.

Bharat FIH IPO GMP

Bharat FIH IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
April 2021
April 2021
April 2021
April 2021
April 2021
April 2021
April 2021
April 2021
April 2021
April 2021
April 2021
April 2021

Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Bharat FIH IPO Review

Bharat FIH IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Bharat FIH IPO is good or bad.

Bharat FIH IPO Risk

• The COVID-19 epidemic and actions to contain it have had, and may continue to have, a significant negative impact on their business.
• They get the majority of their business from a single customer, and a drop in sales to that client will have a significant negative impact on their bottom line.
• Supply shortages of their primary manufacturing inputs have had, and may continue to have, a considerable negative impact on their financial results.
• They may not be able to continue their position as the industry leader in mobile phone EMS.
• They might not be able to effectively transition from EMS to higher-margin ODM services.

Other Threats

• Delays, cost overruns, and other risks and difficulties face their efforts to enhance their production capacities.
• The majority of their clients are unwilling to commit to long-term production schedules.
• Customer connections with developing businesses may be more risky than with established businesses.
• They may require additional funds, but they may not be able to secure it quickly or on reasonable conditions.
• It’s possible that their efforts to secure and protect patents, trademarks, and other intellectual property will be costly and ineffective.
• Their business may suffer if they are no longer able to benefit from their collaboration with the Foxconn Technology Group.

PLI Scheme

They anticipate that the government of India’s “Aatmanirbhar Bharat Abhiyaan,” or Self-Reliant India, initiative, which offers a growing range of incentives to recruit and localise manufacturing and production in the nation, will assist their firm significantly.

These incentives encourage the manufacture and export of goods in a variety of businesses, including those that we expect to grow in the future.

The Firm has been authorized for a PLI for mobile phone manufacture, which gives a 4-6 percent revenue subsidy on additional revenues from phones priced over INR 15,000 Million.

Over the financial years 2022 to 2026, the maximum possible incentive for the Firm under this scheme is INR 60,004 million.

Bharat FIH IPO Brokerage views

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Bharat FIH IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
April 2021	1
April 2021	2
April 2021	3

Foxconn Technology Group

They are a subsidiary of FIH Mobile Limited (“FIH Mobile”), a significant mobile device production service company with over 56,000 people worldwide as of June 30, 2021.

As per the F&S Report, FIH Mobile, which has been listed on the Hong Kong Stock Exchange since 2005, is a subsidiary of the Foxconn Technology Group, a Taiwan-based Fortune 30 company that is the global leader in the EMS business with a 22.7 percent share of global EMS operating income in 2020.

They aim to achieve the Foxconn Technology Group’s vision of delivering holistic smart living interactions for clients, as well as its purpose of long-term value creation for its employees and clients to create long-term healthy business success, in their operations.

Management

Their key leadership staff in India, who have numerous decades work expertise and expertise in the EMS/ODM sector, have built their major production operations and systems, handled the challenges of their inventory system to make sure prompt availability of inputs in adequate volumes, established their skill and human resources, and formed client interactions in less than six years.

The build-out of their three campuses, the expansion of their revenues from operations to INR 343,453.89 million in 2019, handling business issues and barriers prompted by the COVID-19 pandemic in an adaptable way while still bringing profit levels in 2020 and 2021, and beginning business with clients in new firms in the latest Financial Year all demonstrate their management’s execution record of success.

Promoter

• Wonderful Stars
• FIH Mobile

Promoters’s Holding

Pre Issue Share Holding	100.00%
Post Issue Share Holding

Bharat FIH Prospectus