Bhagwati Products May Push IPO By 3 Quarters Amid Memory Chip Price Volatility

Bhagwati Products, an electronics manufacturing services joint venture (JV) between Micromax Informatics and China’s Huaqin Technology, may delay its proposed initial public offering (IPO) by up to three quarters.

Director Rajesh Agarwal said brands are currently unable to provide production projections because of volatility in memory chip prices and are reducing supplies.

Why Is There A Delay In The Bhagwati Products IPO?

Besides volatile memory chip prices, the slowdown in the smartphone market has added to the uncertainty. This makes it difficult for Bhagwati Products to give guidance for the next three years.

The company had been preparing to appoint merchant bankers for the issue, but the process has now been put on hold.

Earlier IPO Plans

Bhagwati Products had planned to launch its IPO in early 2027, with an issue size of ₹2,000 crore to ₹5,000 crore.

The company was targeting a valuation of more than ₹20,000 crore, while promoters had expected a valuation of at least $2 billion.

The majority of the proposed issue was expected to comprise a fresh issue, meaning the proceeds would go to the company.

What Is Bhagwati Products Waiting For?

It is awaiting details of the government’s second production-linked incentive (PLI) scheme for mobile phones, called the Mobile Phone Manufacturing Scheme. The scheme has a budgetary outlay of ₹62,500 crore.

Bhagwati Products wants more clarity on the scheme before finalising its investment plans and capital requirements.

The company has clients including Vivo, Oppo and Hisense, with Vivo accounting for nearly 40% of its business. Bhagwati Products has a stated company valuation of ₹18,000 crore.

What Should Potential Investors Track?

For those following the company’s IPO details, the key developments to track are the revised launch timeline, the final issue structure and the company’s investment plans once details of the second mobile phone PLI scheme emerge.

With the upcoming IPO potentially being delayed by up to three quarters, further clarity on production visibility, memory chip prices and the smartphone market will be relevant to the company’s eventual plans of going public.

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