Micromax Arm and Vivo, Oppo Smartphone Maker Bhagwati Products Launches IPO, Eyes Over $2 Billion Valuation

Bhagwati Products Limited Embarks on Domestic Initial Public Offer Journey

Bhagwati Products Limited, a leading Indian electronics manufacturing services (EMS) player and a joint venture between Micromax Informatics and top Chinese original design manufacturer (ODM) Huaqin Technologies, has initiated the process for a domestic initial public offer (IPO). Sources close to the matter informed Moneycontrol that the company has picked advisors and kicked off the IPO process.

Bhagwati Products, based in New Delhi, is a significant player in various segments including LED TVs, tablets, smart wearables, IT hardware, and automotive electronics. The company is majority-owned by the promoters of Micromax Informatics, with Huaqin Technologies set to make an entry in 2024.

The IPO is expected to raise in excess of Rs 3,000 crore ($321 million) at a targeted valuation of more than Rs 20,000 crore ($2.14 billion). However, the figures may vary depending on market conditions closer to the launch.

| Company | FY 26 Revenue (Rs Crore) | Growth Rate | |-----------------|-------------------------|-------------| | Bhagwati Products | 15,000 | 142.9% | | Amber Enterprises | 5,400 | 14.7% | | Dixon Technologies | 3,500 | 7.9% |

The IPO is expected to open in FY 27, with investment banks ICICI Securities, Axis Capital, Kotak Mahindra Capital, IIFL Securities, and Goldman Sachs engaged by the firm.

Bhagwati Products has been growing at a fast pace, with the draft papers expected to be filed with the market regulator within 3-4 months. The company has been expanding its business, with new facilities in Greater Noida aimed at manufacturing key electronics components such as displays and mechanics.

Shanghai-listed Huaqin Technologies recently launched a $580 million share sale in Hong Kong. Bhagwati Products, founded in 2010, has manufacturing facilities in Greater Noida, Hyderabad, Bhiwadi, and Rudrapur.

The company's peers, Amber Enterprises and Dixon Technologies, have benefited from India's production-linked incentive (PLI) scheme. The share prices of both firms have perked up by 14.70 per cent and 7.93 per cent respectively in the last month.

The Union Cabinet's recent approval of changes to Press Note 3, the rule governing investments from countries sharing a land border with India, has signalled a possible thaw in economic engagement between New Delhi and Beijing.

Bhagwati Products' co-founder Rahul Sharma had earlier stated that the firm is in "major expansion mode" with new facilities in Greater Noida aimed at not only assembling smartphones, tablets, servers, and IoT devices but also manufacturing of key electronics components. The company is on track to achieve Rs 15,000 crore in revenue in FY26, more than doubling from Rs 6,200 crore in the last fiscal.