India: Dixon Technologies raises $28m from anchor investors ahead of IPO

Photo: Reuters

Dixon Technologies (India) Ltd on Tuesday said it has raised Rs179.79 crore by selling shares to institutional investors from the so-called anchor book allocation, a day ahead of the launch of its initial public offering (IPO).

The Dixon Technologies IPO opens on 6 September. The company has set a price band of Rs1,760-1,766 per share for the share sale. Institutional investors bought 1.018 million shares of Dixon Technologies at the upper end of the price band.

The anchor book is that portion of an IPO that bankers can allot to institutional investors on a discretionary basis. Anchor book subscription opens a day before an IPO launch and acts as an indicator of institutional investor interest.

Institutional investors who participated in the anchor book allocation included Steadview Capital Mauritius Ltd, DSP Blackrock, Kuwait Investment Authority, Goldman Sachs India Fund, Franklin Templeton Mutual Fund, HSBC MF, Nomura Funds, HDFC MF, Birla Sunlife MF, SBI MF, ICICI Prudential AMC and Kotak MF.

Dixon Technologies, backed by Motilal Oswal Private Equity (MOPE), provides manufacturing services for products such as LED TVs, semi-automatic washing machines, lighting products and mobile phones. The IPO consists of a fresh issue of shares worth Rs60 crore and an offer for sale of 3.05 million shares by MOPE. At the upper end of the price band, the stake sale will give MOPE around Rs540 crore.

Dixon plans to use the proceeds from the IPO for repayment of debt, setting up an LED TV manufacturing unit at its Tirupati facility for enhancement of its backward integration capabilities in its lighting products vertical at its Dehradun facility and for upgradation of its IT infrastructure.

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This article was first published on Livemint.com

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.