In 2014, Nokia closed its mobile manufacturing operations in India due to several local issues. This has dampened India’s electronic manufacturing services (EMS) space. However, this subdued sentiment did not last long.
The following year, Bharat FIH – part of Taiwan’s Foxconn Technology Group – began its journey in India with a focus on mobile phone manufacturing.
Since then, the company has made significant inroads in the country thanks to increasing mobile phone penetration. Today, it is the largest EMS provider for the mobile phone industry in India with a 23% market share in FY21. In fact, it is the largest mobile phone manufacturing and assembly service provider for Xiaomi, the leader in the Indian smartphone industry.
In addition, it has also begun to focus on fast-growing industries such as mechanics, electric vehicles, television, telecommunications and hearing aids.
Competitive Strengths
- Largest EMS provider in India by revenue market share, with the size, scale and competencies to pursue substantial growth opportunities in the EMS market;
- Availability of PLIs;
- 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;
- Ability to drive innovation through advanced research and development capabilities;
- Resilient, capital efficient business with stable working capital cycle;
- Experienced management with a demonstrated track record of delivering profitable growth; and
- Strong parentage with global leadership, backed by experienced management.
Is Bharat FIH good for Investment?
Founded as Rising stars Mobile India, now Bharat FIH Limited commenced its business in Andhra Pradesh and eventually expanding its coverage and now has set up units in Sungavarchatram and Sriperumbudur in 2017.
In a tenure of 6 years, the company has attained immense progress and is continuously expanding its horizons. It manufactures various components of mobile phones and also processes the assembly of the same.
Started the journey in 2015, the company is employing 2500 employees and implements various policies for the convenience of its employees. With this extensive capacity, Bharat FIH is serving domestic as well international brands.
The company employs driven quality technological processes to execute its operations.
Company Financials
| Particulars | 30 Sep 2021 | 31 March 2021 | 30 Sep 2020 | 31 March 2020 | 31 March 2019 |
| Total Revenue | 10169.83 | 15906.65 | 6427.86 | 26669.32 | 34392.37 |
| Total Expense | 10050.32 | 15710.15 | 6343.02 | 26195.95 | 34603.69 |
| Profit Before Tax | 119.50 | 196.50 | 84.83 | 473.37 | (211.32) |
| Profit After Tax | 89.17 | 161.91 | 88.18 | 389.71 | (222.87) |
Object Of The Issue
- Funding capital expenditure requirements of our Company towards expansion of our existing campuses.
- Investment in our Subsidiary, RSHTPL, for financing capital expenditure requirements.
- Funding working capital requirements of our Company.
- General corporate purposes.
Bharat FIH IPO Peer Comparison
| S. No. | Face Value | Company Name | PE |
| 1 | 2 | Dixon Technologies Ltd. | 206.62 |
| 2 | 10 | Amber Enterprise India | 131.02 |
Bharat FIH IPO 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.
Bharat FIH IPO Risks
- Derive most of its revenue from a single customer.
- Shortages in the supply of the major production inputs which has and may again disrupt the business operations.
- May not be able to anticipate and adapt to rapid technological changes and continue offering high quality products and services.
- May not be able to successfully expand the EMS business into higher margin ODM services.
- Face significant competitive pressures in a market characterised by factors such as rapid technological change, the development of new end products and their rapid obsolescence, evolving industry standards and significant price erosion over the life of a product.
Bharat FIH IPO – Details
| IPO Opening Date | 2022 |
| IPO Closing Date | 2022 |
| Issue Type | Book Built Issue IPO |
| Issue Size | – |
| Fresh Issue | – |
| Offer For Sale | – |
| Face Value | ₹10 per equity share |
| IPO Price | – |
| Market Lot | – |
| Min Order | – |
| Listing At | BSE, NSE |
| Register | KFin Technologies Private Limited |
| QIB Shares Offered | Not more than 50% of the Net Offer |
| Retail Shares Offered | Not less than 35% of the Net Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Net Offer |
Bharat FIH IPO – Date Schedule
| IPO Open Date | 2022 |
| IPO Close Date | 2022 |
| Basis of Allotment Date | 2022 |
| Initiation of Refunds | 2022 |
| Credit of Shares to Demat Account | 2022 |
| IPO Listing Date | 2022 |
Bharat FIH IPO – Lots Size & Price
| Application | Lots | Shares | Amount ( Cut-Off) |
| Minimum | – | – | – |
| Maximum | – | – | – |
Promoter Holding
| Pre Issue Share Holding | 100% |
| Post Issue Share Holding | – |
Bharat FIH IPO Prospectus
Company Contact Information
| Bharat FIH Limited M-2B, DTA Area, SIPCOT Industrial Park, Phase – II Chennai Bangalore NH- 4, Sunguvarchatram, Sriperumbudur, Kancheepuram 602 106, Tamil Nadu, India Tel: +91 44 67113500 E-mail: investor@bfih-foxconn.com Website: https://www.bharatfih.com/ |
Bharat FIH IPO Registrar
| KFin Technologies Private Limited Selenium, Tower B, Plot No. 31-32 Financial District, Nanakramguda, Hyderabad, Rangareddi 500 032 Telangana, India Tel: + 91 40 6716 2222 E-mail: bharatfih.ipo@kfintech.com Website: www.kfintech.com |
Bharat FIH IPO Lead Manager(s)
| 1. Kotak Mahindra Capital Company Limited 2. Citigroup Global Markets India Private Limited 3. BNP Paribas 4. HSBC Securities and Capital Markets (India) Private Limited |
Bharat FIH IPO FAQs
| What is Bharat FIH IPO? Bharat FIH IPO is a main-board IPO. The issue is priced at ₹[] to ₹[] per equity share. The IPO is to be listed on BSE & NSE. |
| When Bharat FIH IPO will open? The IPO is to open on 2022 for QIB, NII, and Retail Investors. |
| What is Bharat FIH IPO Investors Portion? The investors’ portion for QIB-75%, NII-15%, and Retail 10%. |
| How to Apply the Bharat FIH IPO? You can apply Bharat FIH IPO via ASBA online via your bank account. You can also apply for ASBA online via UPI through your stock brokers. You can also apply via your stock brokers by filling up the offline form. |
| How to Apply the Bharat FIH IPO through Angle One? Log in to Angle One Application with your credentials. Select the IPO. You will see the IPO Name “Bharat FIH”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Angle One. |
| How to Apply the Bharat FIH IPO through 5 Paisa? Log in to 5 Paisa Application with your credentials. Select the IPO. You will see the IPO Name “Bharat FIH”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with 5 Paisa. |
| How to Apply the Bharat FIH IPO through Upstox? Log in to Upstox Application with your credentials. Select the IPO. You will see the IPO Name “Bharat FIH”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Upstox. |
| How to Apply the Bharat FIH IPO through IIFL? Log in to IIFL Application with your credentials. Select the IPO. You will see the IPO Name “Bharat FIH”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with IIFL. |
| What is Bharat FIH IPO Size? Bharat FIH IPO size is ₹[] crores. |
| What is Bharat FIH IPO Price Band? Bharat FIH IPO Price Band is ₹[] to ₹[]. |
| What is Bharat FIH IPO Minimum and Maximum Lot Size? The minimum bid is [] Shares with ₹[] amount while the maximum bid is [] shares with ₹[]. |
| What is the Bharat FIH IPO Allotment Date? Bharat FIH IPO allotment date is []. |
| What is the Bharat FIH IPO Listing Date? Bharat FIH IPO listing date is []. The IPO is to list on BSE and NSE. |
