About the Company:
Dixon Technologies is one of the largest home-grown design-focused and solutions company engaged in manufacturing products in the consumer durables, lighting and mobile phones markets in India.Company was incorporated in 1993 and, in 1994,they commenced manufacturing of consumer electronics such as colour televisions. In 2007,they commenced manufacturing of LCD TVs and subsequently progressed into manufacturing of LED TVs in 2010.
They entered the lighting products segment in 2008 with the manufacturing of CFL products and gradually increased the product portfolio to LED products in 2016. In 2010,they also started manufacturing semi-automatic washing machines.
Business segments include Consumer Electronics, Home Appliances, Lighting Solutions, Mobile Phones and Reverse Logistics.Diversified product portfolio includes LED TVs, Washing machines, LED bulbs, Tube lights, CFL bulbs & Mobile phones.They also provide solutions in reverse logistics i.e. repair and refurbishment services of set top boxes, mobile phones and LED TV panels.
They also manufacture lighting products like CFL, LED bulbs, LED TVs and semi-automatic washing machines in India.Company’s key customers include Panasonic India Private Limited, Philips Lighting India Limited, Haier Appliance (I) Pvt. Ltd.,Gionee, Surya Roshni Limited, Reliance Retail Limited, Intex Technologies (I) Ltd., Mitashi Edutainment Pvt.Ltd., Dish Infra Services Private Limited.
They provide fully integrated end-to-end product and solutions to suite original equipment manufacturers (“OEMs”) ranging from global sourcing, manufacturing, quality testing and packaging to logistics. We are also a leading Original Design Manufacturer (“ODM”) of lighting products, LED TVs and semi-automatic washing machines in India.As an ODM,Company develops and designs products in-house at their R&D centre.They also manufacture and supply these products to well-known companies in India who in turn distribute these products under their own brands.
Company has a in-house R&D centre, apart from undertaking electronics hardware designing, system architecture,mechanical design, component engineering and optics design, also assists our customers in cost reduction through product engineering.
Company has six state-of-the-art manufacturing facilities which are strategically located in the states of Uttar Pradesh and Uttarakhand meeting the quality requirements of our customers, including global brands.
Out of our six manufacturing facilities, three are located in Noida in the state of Uttar Pradesh and manufacture CFL as well as LED lamps and drivers and mobile phones, while the other three are located at Dehradun in the state of Uttarakhand and manufacture CFL as well as LED lamps and drivers, electronic ballasts, LED TVs and washing
machines.
Company’s key customers in the home appliances vertical include:
- Global brands: Panasonic India Private Limited, Haier Appliance (I) Pvt. Ltd.
- National and regional brands: Intex Technologies (I) Ltd.
Company’s key customers in the lighting products vertical include:
- Global brands: Philips Lighting India Limited
- National brands: Surya Roshni Limited.
Company’s key customers in the reverse logistics vertical include-
- National brands: Intex Technologies (I) Ltd.
- Domestic DTH operators: Dish Infra Services Private Limited
TOP 10 Shareholders:
| Sr.No. | Shareholder Name | Number of Equity Shares held | Percentage of Equity Share Capital % |
|---|---|---|---|
| 1. | Sunil Vachani | 4,830,576 | 43.97 |
| 2. | IBEF I | 1,446,201 | 13.16 |
| 3. | Kamla Vachani | 1,225,023 | 11.15 |
| 4. | IBEF | 1,155,730 | 10.52 |
| 5. | Atul B. Lall | 700,000 | 6.37 |
| 6. | GMO Emerging Domestic Opportunities Equity Fund |
339,751 | 3.09 |
| 7. | Geeta Vaswani | 244,417 | 2.22 |
| 8. | Sunita Mankani | 196,000 | 1.78 |
| 9. | Shobha Sippy | 196,000 | 1.78 |
| 10. | Steadview Capital Mauritius | 192,191 | 1.75 |
| Total | 10,525,889 | 95.82% |
Competitive Strengths of the Company:
- Experienced Promoter and Management team.
- Leading market position in key verticals.
- Strong relationships with a diverse top-tier customer base.
- End to end solutions provider with dedicated research and development capabilities.
- In-House Research and development Team.
- Global sourcing at competitive prices.
- Flexible and cost-effective manufacturing capabilities.
- Strong Financial Performance and stable cash flows.
Company’s Future Growth Strategies:
- Continue to focus on ODM model.
- Continue to strengthen the existing product portfolio and diversify into products with attractive growth and profitability prospects.
- Development of our service offerings.
- Expand existing relationships with customers into other product verticals.
- Expansion of industrial footprint into new geographies.
- Continue to strive for cost leadership.
Subsidiaries of the Company:
- Dixon Global Private Limited (“DGPL”).
Joint Ventures of the Company:
- Padget Electronics Private Limited; and
- AIL Dixon Technologies Private Limited.
Management of the Company:
- Mr.Sunil Vachani (Designation: Executive Chairman)
- Mr.Atul B. Lall (Designation: Managing Director)
- Mr.Ramesh Chandra Chopra (Designation: Non-executive independent director)
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Objectives of the Issue:
- Repayment/pre-payment, in full or in part, of certain borrowings availed by the Company.
- Setting up a unit for manufacturing of LED TVs at the Tirupati Facility.
- Enhancement of backward integration capabilities in the lighting products vertical at Dehradun I Facility.
- Up-gradation of the information technology infrastructure of the Company.
- General corporate purposes.
- Listing Benefits.
Positives for the Sector:
- Many manufacturers are planning to shift their manufacturing base from China to India because of rising labour and real-estate cost in China.
- India is increasingly seen as a destination to manufacture to cater to huge local demand.
- High domestic demand for Electronics.
- Focus on localization: Market has transitioned from a totally import dependent to a local assembly market.
- Lower labour costs: USD 0.92 per hour against USD 3.52 in China.
- Government policies: Duty cut on panel imports and raw materials for panel manufacturing.
- Ease of doing business: ‘Make in India’ has brought in regulatory reforms to make manufacturing easier.
Positives for the Company:
- Experienced Promoter and Management team.
- End to end solutions provider with dedicated research and development capabilities.
- Flexible and cost-effective manufacturing capabilities.
- In-house Research & Development (R&D) centre.
- Strong Financial Performance and stable cash flows.
- Expand existing relationships with customers into other product verticals.
- Expansion of industrial footprint into new geographies.
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 |
|---|---|---|---|---|---|
| Revenue | 768.04 | 1097.09 | 1203.12 | 1391.17 | 2458.26 |
| Net Profit | 4.9 | 13.5 | 11.8 | 42.57 | 50.37 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 6th September 2017 |
| Isue Closes on:. | 8th September 2017 |
| Issue Price | Rs.1760 – 1766 |
| Face Value | Rs.10 |
| Minimum Lot | 8 |
| Minimum Investment | Rs.14,128 |
| Issue Constitutes | 29.96% |
| Issue Size | Rs.600 cr |
| Market Cap | Rs.2000 cr |
| Listing at | NSE & BSE |
| Equity Shares Offered | 33,93,425 |
| Equity Shares Prior | 1,09,85,341 |
| Equity Shares after the issue | 1,43,78,766 |
Important Dates:
| Finalisation of Basis of Allottment | on or Before 13th September 2017 |
| Initiation of Refunds | 14th September 2017 |
| Credit of Equity Shares: | 15th September 2017 |
| Listing Date: | 18th September 2017 |
Subscription Details: (Find Latest Updates)
| (Subscription-Category-Wise (no. of times) Till time : 05:00 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 6,79,264 | 1.34 | 9.6 | 134.66 |
| NII | 5,09,188 | 0.0369 | 0.99 | 345.6 |
| Retail | 11,88,105 | 0.799 | 3.6 | 9.5 |
| Employee | ——– | ——– | —- | —- |
| TOTAL | 23,76,557 | 0.807 | 4.9 | 117.3 |
IPO Valuation parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 46.22 | 38.20 | 25.48 | 173.41 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Subscribe | Long Term | 20% |
