Bharat FIH has received an approval from the Securities and Exchange Board of India for raising Rs 50 billion through an initial public offering (IPO). Bharat FIH, formerly Rising Stars Mobile India, is the largest electronic manufacturing services (EMS) provider in India and a subsidiary of FIH Mobiles and a Foxconn Technology Group company.
According to the Draft Red Herring Prospectus (DRHP), the initial share-sale of Bharat FIH comprises fresh issue of shares worth Rs 25.02 billion and an offer for sale of up to Rs 25.02 billion by promoter group and Foxconn unit Wonderful Stars.
Currently, Wonderful Stars holds 99.97 per cent stake in the company.
As per the draft papers, the proceeds of fresh issue will be used for funding capital expenditure requirements of the company towards expansion of its existing campuses, investment in subsidiary, to support working capital requirements and general corporate purposes.
