Electronic manufacturing firm Dixon Technologies (India) expects to raise Rs 600 crore from its IPO due on September 6 and plans to spend the proceeds on capacity expansion and debt repayment.
"In the primary raise, the money will be spent on setting up LED TV capacity in Tirupati, expansion of our backward integration of lighting business, debt repayment, IT infrastructure and the rest will be used for general corporate purposes," Dixon Technologies Managing Director Atul B Lall told reporters.
The company expects to raise Rs 60 crore from the primary round of equity sale and Rs 540 crore from offer for sale.
"Post listing, 52 per cent of Dixon will be held by promoters and friends, 8 per cent by employees, 5 per cent by Motilal Oswal and 35 per cent will be with the public,"
The brokerage house placed its bet on better consumer eletri market based on growing middle-income class population, rising disposable income, increasing affordability, and easy finance availability coupled with favorable government policies, and increasing product awareness. This, in turn, would benefit companies such as Dixon.
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