Ekkaa Electronics files papers for Rs 725 crore IPO

Ekkaa Electronics has filed draft papers with Sebi to raise Rs 725 crore through an IPO, comprising a fresh issue of Rs 525 crore and an OFS of Rs 200 crore. Proceeds will support debt repayment, working capital and corporate needs

New Delhi: Consumer electronics and appliances maker Ekkaa Electronics (India) Ltd has filed draft papers with markets regulator Sebi to raise Rs 725 crore through an Initial Public Offering (IPO), as the company looks to strengthen its balance sheet and fund its working capital needs.

The proposed IPO comprises a fresh issue of equity shares worth up to Rs 525 crore and an Offer for Sale (OFS) of shares worth up to Rs 200 crore by promoters Chandra Prakash Gupta and Madhuri Gupta, according to the Draft Red Herring Prospectus (DRHP) filed on Thursday.

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The Delhi-based company may also consider raising up to Rs 105 crore through a pre-IPO placement. If completed, the fresh issue size will be reduced accordingly.

The company proposes to use the proceeds from the fresh issue to repay or prepay certain borrowings, fund its working capital requirements and meet general corporate expenses.

Ekkaa Electronics is an integrated Original Design Manufacturer (ODM) and Original Equipment Manufacturer (OEM) of consumer electronics and appliances in India, with a portfolio spanning LED televisions, washing machines, air coolers, multimedia speakers, induction and infrared cooktops, and smart displays.

The company also manufactures metal back covers and casings for LED televisions. It offers end-to-end services, including product design, sourcing, manufacturing, packaging and assembly, and has in-house electrical and mechanical design capabilities.

Motilal Oswal Investment Advisors and Shannon Advisors are the book-running lead managers to the issue.