Tuesday, July 17News That Matters

Dixon Technologies Rs 600-crore IPO fully subscribed on Day 2 :

The public issue of Dixon Technologies has been fully subscribed on the second day.

The Rs 600-crore IPO has been oversubscribed 1.18 times on Thursday, as per data available on the National Stock Exchange.

The issue received bids for 28.11 lakh equity shares against issue size of 23.76 lakh shares (excluding anchor investors’ portion that already received good response).

On day one yesterday, the issue was subscribed 0.78 times as the reserved portion of qualified institutional investors saw subscription of 1.34 times and retail 0.78 times.

The public issue consists of fresh issue of Rs 60 crore and an offer for sale of upto 30,53,675 equity shares (including anchor portion of 10,18,027 equity shares).

The company aims to raise Rs 597.44-599.27 crore through the issue, at a price band of Rs 1,760-1,766 per share.

Dixon already raised Rs 179.78 crore from anchor investors, including Kuwait Investment Authority Fund, Goldman Sachs India, DSP BlackRock Micro Cap Fund, Steadview Capital Mauritius, ICICI Prudential Growth Fund and SBI Life.

It will use issue proceeds for setting up a unit for manufacturing LED TVs at its Tirupati facility; enhancement of backward integration capabilities in the lighting products vertical at Dehradun facility and upgradation of the information technology infrastructure; for repayment of loans; and for general corporate purposes.

IDFC Bank, IIFL Holdings, Motilal Oswal Investment Advisors and Yes Securities are the book running lead managers to the issue.

source: moneycontrol.com

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