UKB Electronics Limited, a prominent Indian provider of electronic manufacturing services (EMS), has filed its Draft Red Herring Prospectus (DRHP) with SEBI, signaling its intention to raise up to ₹800 crore through an initial public offering (IPO).
IPO Structure & Breakdown
- The ₹800 crore offering comprises:
- Fresh Issue: Up to ₹400 crore in newly issued shares.
- Offer for Sale (OFS): Up to ₹400 crore of existing shares, sold by promoters.
- Promoter Stake Sale via OFS:
- Manoj Tayal: ₹135 crore
- Vinay Kumar Tayal: ₹135 crore
- Manik Tayal: ₹130 crore
Use of Proceeds
The funds raised from the fresh issue will be allocated as follows:
- ₹221 crore for repayment or pre-payment of existing borrowings.
- ₹80–81 crore to expand plant and machinery at manufacturing facilities.
- Remaining funds will support general corporate purposes; the final allocation may adjust if a pre-IPO placement of up to ₹80 crore occurs.
Company Profile & Industry Position
- UKB Electronics is a full-service EMS provider, covering product design, prototyping, manufacturing, and testing.
- Business Segments:
- Home Appliances & Consumer Electronics (≈94.5%)
- Strategic Electronics (≈5.5%)—covering sectors like aerospace, defence, automotive (e-mobility), industrial automation, and renewable energy.
- The company serves over 675 customers (including 203 OEMs) between FY2022 and FY2025, including industry giants such as LG, Panasonic, Haier, IFB, Carrier Midea, Voltas-Beko, Dixon, Liebherr, Versuni, and others.
- Its manufacturing footprint spans 11 facilities, including locations in Noida, Pune, Ahmednagar, Ghiloth (Rajasthan), Goa, Sri City, and Chennai .
Financial & Competitive Highlights
- FY25 Revenue: ₹787 crore (up from ₹579 crore in FY24)
- PAT: ₹46 crore (up from ₹26.7 crore in FY24)
- Outstanding Borrowings (as of June 2025): ₹330 crore.
- Competitors: Kaynes Technology, Avalon Technologies, Dixon Technologies, PG Electroplast, Amber Enterprises .
Market Role & Implications
This IPO positions UKB Electronics to tap into capital markets to fund growth, reduce leverage, and scale manufacturing operations.
The involvement of Motilal Oswal Investment Advisors and IIFL Capital Services as lead managers, with KFin Technologies as the registrar.
Impacts for Markets & Investors
- The IPO reflects a growing investor interest in the EMS sector, especially firms with dual strength in consumer and strategic electronics.
- Repayment of debt and capacity expansion point towards a more robust balance sheet and potential for operational scale.
- Investors will likely monitor valuation metrics and the pace of uplift in the strategic electronics division.
Summary Table: UKB Electronics IPO Snapshot
| Detail | Info |
|---|---|
| Total Size | ₹800 crore |
| Fresh Issue | ₹400 crore |
| OFS by Promoters | ₹400 crore (Manoj ₹135 cr, Vinay ₹135 cr, Manik ₹130 cr) |
| Fund Uses | Debt repayment, plant & machinery, corporate purposes |
| FY25 Financials | Revenue ₹787 cr; PAT ₹46 cr; Borrowings ₹330 cr |
| Manufacturing Network | 11 facilities across 6+ Indian states |
The IPO moves to the next stage with SEBI review. Once approved, UKB Electronics will finalize the price band, launch subscription, and complete listing on BSE and NSE.
