Mumbai: 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.