UKB Electronics Files for Rs 800-Crore IPO to Fund Expansion Plans
UKB Electronics Ltd., an integrated electronic manufacturing services provider, has filed preliminary papers for an IPO worth Rs 800 crore. The IPO includes a fresh issue of Rs 400 crore and an offer for sale of Rs 400 crore by promoters. Funds will be used for debt repayment and purchasing manufacturing equipment. The company serves Fortune 500 clients and reported a revenue of Rs 787 crore with 32% growth and a profit of Rs 46 crore with 70.30% growth. Shares will be listed on NSE and BSE, with Motilal Oswal Investment Advisors and IIFL Capital Services as lead managers.
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UKB Electronics Ltd., an integrated electronic manufacturing services provider, has taken a significant step towards public listing by filing preliminary papers for an initial public offering (IPO) worth Rs 800 crore. The company aims to raise funds for expansion and debt repayment through this move.
IPO Structure
The proposed IPO comprises two components:
- A fresh issue of shares worth Rs 400 crore
- An offer for sale (OFS) of Rs 400 crore
Three promoters of the company - Manoj Tayal, Vinay Kumar Tayal, and Manik Tayal - will participate in the OFS, selling a portion of their stakes.
Fund Utilization
UKB Electronics has outlined clear plans for the proceeds from the fresh issue:
- Debt repayment
- Purchase of manufacturing equipment
These strategic moves are expected to strengthen the company's financial position and enhance its manufacturing capabilities.
Company Profile
UKB Electronics has established itself as an integrated electronic manufacturing services provider, catering to several Fortune 500 companies. Its impressive client roster includes:
- LG Electronics India
- Panasonic Appliances India
- Carrier Midea India
- Haier Appliances India
Financial Performance
The company has demonstrated strong financial growth:
| Metric | Amount | Growth |
|---|---|---|
| Revenue | Rs 787.00 crore | 32.00% |
| Profit | Rs 46.00 crore | 70.30% |
This robust financial performance underscores the company's growth trajectory and operational efficiency.
IPO Details
- Listing: The shares will be listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE)
- Lead Managers: Motilal Oswal Investment Advisors and IIFL Capital Services have been appointed as the lead managers for the IPO
The filing of preliminary papers marks the beginning of UKB Electronics' journey towards becoming a publicly traded company. Investors and market watchers will be keenly observing the developments as the IPO process unfolds, given the company's strong client base and impressive financial growth.
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