Bharat FIH Limited

About Bharat FIH IPO

In 2014, Nokia closed its mobile manufacturing operations in India due multiple local challenges. This put a dampener on India’s electronic manufacturing services (EMS) space. However, this subdued sentiment was short-lived.    

The following year, Bharat FIH – a part of Taiwan headquartered Foxconn Technology Group – commenced its journey in India with a focus on mobile phone manufacturing. 

Since then, the company has made strong inroads in the country, riding on the increasing mobile phone penetration. Today, it is the largest EMS provider to the mobile phone industry in India, with 23% market revenue share in FY21. In fact, it is the largest mobile phone manufacturing and assembly services provider to Xiaomi, which is the leader in the Indian smartphone industry. 

 Besides this, it has also started catering to high-growth industries such as mechanics, electric vehicles, televisions, telecom and hearables. And now, the company is planning to launch the Bharat FIH IPO to raise money. The money raised through the fresh issue of the Bharat FIH Ltd IPO will be used to expand the mobile manufacturing capacity as well as further fuel the diversification of the business. 

Here are key details about Bharat FIH IPO: 

Financial snapshot

A quick look at Bharat FIH IPO’s strengths, risks and threats

Strengths 

1. Had more than twice the revenue of the second largest EMS provider in India in FY21
2. Has built long-term and strategic relationships with leading mobile phone companies
3. Manufactures Nokia branded phones for HMD Mobile India 
4. Large-scale, high quality and state-of-the-art manufacturing and assembly capabilities. The total installed capacity stood at 5.5 crore units in FY21
5. Has a workforce of more than 25,000 personnel 
6. Has strong parentage with global leadership and is backed by experienced management
7. India’s total addressable EMS market is expected to grow a CAGR of 30.3% to US$135 billion (₹996.6 crore) by FY26

Risks and threats 

1. Xiaomi accounted for 94% of its revenue in the first six months of FY22
2. An average of 95% of its components and inputs were imported from China in FY21 and 6MFY22
3. The mobile phone EMS industry is highly competitive. It faces competition from a number of domestic and international EMS providers
4. Its key competitors include Flextronics Technologies (India), Jabil Circuit India and Dixon Technologies (India)
5. Its mobile phone revenue is subject to seasonality, like festive seasons 
6. Has witnessed negative cash flow in FY19, FY20 and FY21
7. The business is capital intensive. It constantly seeks to add new capacity and upgrade  manufacturing facilities

Bharat FIH IPO details

| Bharat FIH IPO date 

The company has filed its Draft Red Herring Prospectus (DRHP) with the market regulator SEBI. It has also received a nod from SEBI to launch its IPO. But the Bharat FIH IPO’s opening date – in other words, the Bharat FIH IPO launch date – hasn’t been announced yet. The Bharat FIH IPO closing date also hasn’t been declared. Along with these dates, investors will be updated about the Bharat FIH shares allotment date. 

Investors, who receive allotment, can expect Bharat FIH shares to be credited in their demat account after the allotment date. Besides this, the Bharat FIH IPO listing date hasn’t been announced yet. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE. Stay tuned with Uptox for all the key updates about the Bharat FIH IPO.

| Bharat FIH IPO price band

The Bharat FIH IPO is a book-built issue. The Bharat FIH IPO price band hasn’t been set yet. The price band is a price range within which investors can apply for the IPO. When the Bharat FIH IPO opens, interested investors will have to choose a price within the band to apply for the public issue. 

Also, the Bharat FIH IPO listing price will be determined on the listing date. The listing price is the price at which the shares of a company make their debut on the stock exchanges. 

| Bharat FIH IPO lot size

The Bharat FIH IPO details haven’t been declared. Hence, the Bharat FIH IPO lot size also hasn’t been announced yet. It’s important to note that an investor can apply for a minimum of 1 lot. Meanwhile, according to the news reports, the Bharat FIH IPO issue size could be around ₹5,000 crore.  

How to apply for the Bharat FIH IPO?

If you are interested in this investment opportunity but unsure how to apply for the Bharat FIH IPO, here we are listing out the steps for you. 

When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Bharat FIH IPO on Upstox: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Bharat FIH IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

How to check the Bharat FIH IPO allotment status?

When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. 

Here’s a step-by-step guide on how to check the Bharat FIH IPO allotment status:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover page, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, you will find the ‘View all’ option
5. Once you click on ‘View all’, you will be directed to the ‘IPO’ tab
6. In the ‘IPO’ tab, click on ‘My applications’ 
7. In ‘My applications’, under the History section, your Bharat FIH IPO allotment status will be mentioned

Upstox – trading app to apply for the Bharat FIH IPO

Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  

You can apply for the Bharat FIH IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero. 

In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.