Bharat FIH Ltd, a subsidiary of FIH Mobiles and a Foxconn Technology Group company, a top domestic electronic manufacturing services (EMS) player and the largest handset maker for Xiaomi, filed papers with markets regulator Sebi on Wednesday to raise more than Rs 5,000 crore via an initial public offering (IPO).

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According to the draft red herring prospectus (DRHP), Bharat FIH’s IPO would include a fresh issue of up to 2,502 crore shares and an offer for sale of up to 2502 crore shares by the promoter group and Foxconn unit Wonderful Stars. 

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“Since March 2021 we have been expanding our business into industries other than mobile phones, with a focus on high-growth industries that benefit from market tailwinds, including mechanics, electric vehicles, televisions, and hearables,” the firm said in its DRHP.

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Some of these industries are expected to benefit from regulatory support such as production-linked incentive schemes, which are part of the government of India’s Aatmanirbhar Bharat Abhiyaan, or Self-Reliant India, campaign, which seeks to provide a range of benefits for manufacturing in India.

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“Our applications for PLIs for the mobile phone, telecom and networking products, and IT hardware industries have been approved in October 2020, October 2021, and July 2021. Given the significant under-penetration and increasing per capita usage of these products in India, the country’s total addressable EMS market is expected to grow to US$135 billion by FY26 with a CAGR of 30.3% between FY21 and FY26, giving us substantial growth opportunities to diversify into these new high-growth industries and provide new categories of customers with a range of service offerings,” it said.

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According to the prospectus, Bharat FIH has a 15% market revenue share in FY21. Citigroup Global Markets India, BNP Paribas, and HSBC Securities and Capital Markets (India) are among the top book-runners for Bharat FIH’s initial public offering.

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Bharat FIH operates across campuses in Andhra Pradesh and Tamil Nadu, each of which integrates manufacturing, warehousing, logistics, and lodging facilities.