Dixon Technologies IPO, which contains a fresh issue of Rs 60 crore was subscribed % in wee hours of the second day of bidding. (Image: Dixon Technologies Website)

Dixon Technologies India Ltd Rs 600 crore IPO which opened yesterday was fully subscribed on the second day even as bidding is left for two more days including today. The initial public offer of Dixon Technologies, which contains a fresh issue of Rs 60 crore was subscribed 104% on the morning of the second day of bidding. The qualified institutional buyers seem to have more interest in the IPO as quota reserved for them — 6,79,264 shares — was subscribed 1.34 times on the first day itself. The shares reserved for non-institutional investors (5,09,188 shares) were subscribed 34% while retail individual investors (11,88,105 shares) category was subscribed 1.29 times. The technology firm is planning to spend the proceeds on capacity expansion and debt repayment.

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The company expects to raise Rs 60 crore from the primary round of equity sale and Rs 540 crore from the offer for sale. “Post listing, 52% of Dixon will be held by promoters and friends, 8% by employees, 5% by Motilal Oswal and 35% will be with the public,” PTI reported citing Dixon Technologies MD Atul B Lall. The initial public offer of Dixon IPO has a price band of Rs 1,760-1,766 per share with a face value of Rs 10 each. The book running lead managers of the issue are IDFC Bank Limited, IIFL Holdings Limited, Motilal Oswal Investment Advisors Limited and YES Securities (India) Limited.

“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,” MD Atul B Lall added. Dixon plans to repay a debt of Rs 22 crore, invest Rs 7.57 crore in setting up its seventh manufacturing unit for LED television in Tirupati. The company will use Rs 8.85 crore for producing parts of LED lights at its Dehradun plant.