Company Which Makes Apple iPhone Will Launch Rs 5000 Cr IPO In India: But Why?
Foxconn, the company that manufactures Apple’s iPhones, is in discussions to launch an IPO worth Rs. 5000 crore in India.
Reports have stated that the company will launch an IPO after consolidation with some group entities in India.
Read on to find out all the details!
Foxconn To Float Initial Public Offer (IPO) Worth More Than Rs 5,000 crore
Foxconn, a Taiwanese multinational electronics contract manufacturer and assembler of Apple iPhones is planning to float an initial public offer (IPO) worth more than Rs 5,000 crore ($680 million) in India.
In July, it was reported that Foxconn was considering investing $1billion (around Rs 7,500 crore) in order to expand its facility at Sriperumbudur in Tamil Nadu. also, we all are aware of Apple’s plans to shift some portion of its iPhone production out of China. For this, the company has also asked its suppliers to do the needful.
As per many market analysts, this planned IPO clearly shows New Delhi’s plans in attracting technology giants to India. As per some sources close to the development, this IPO will be launched only after the company consolidates some group entities in India.
Presently, Foxconn already has two plants in Tamil Nadu and Andhra Pradesh, which primarily assemble Apple and Xiaomi smartphones. The company’s Chairman Liu Young-way had also revealed that the investment in India will be increased soon; however, many details weren’t available at the time.
Foxconn Applying For PLI Scheme Along With Wistron, Pegatron
There also are reports about Foxconn applying to the ministry of electronics and information technology (Meity) in order to participate in the billion production-linked incentive (PLI) scheme that is offered to global players. The PLI Scheme is also available for Indian handset manufacturers as well.
Foxconn, Wistron, and Pegatron, Apple’s top three contract manufacturers, were reportedly planning to invest about $900 million in India in the next five years to tap into the PLI scheme separately.
Foreign companies were given an incentive of up to 6 per cent for five years with the condition that they meet the predetermined levels in terms of production and investment for each year from FY21.