EMS provider UKB Electronics plans to tap capital markets, files draft papers for Rs 800-crore IPO

UKB Electronics IPO

UKB Electronics, an electronic manufacturing services provider for home appliances and consumer electronics players, is planning to tap capital markets to raise Rs 800 crore via IPO.

The company has filed draft red herring prospectus with the capital markets regulator for the said IPO. It intends to raise Rs 400 crore via new shares, while the promoters will sell Rs 400 crore worth shares in the offer-for-sale.

Further, the Noida-based firm may consider raising funds up to Rs 80 crore in pre-IPO round, which is a part of fresh issue component.

UKB Electronics divides its business into two segments - home appliances and consumer electronics, and strategic electronics, serving leading original equipment manufacturers (OEMs) including LG Electronics India, Panasonic Appliances India, Carrier Midea India, and Haier Appliances India.

Under the home appliances and consumer electronics segment, which contributed 94.5 percent to its total business, it covers the entire lifecycle of product manufacturing (from mould designing, manufacturing printed circuit board and brass components, to product assembly lines and testing facilities).

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Strategic electronics division accounted for 5.5 percent of its revenue in the fiscal 2025, catering to aerospace and defence, automotive (including e-mobility charging solutions), mass transportation, and industrial automation and renewables.

UKB Electronics proposed to utilise Rs 221.3 crore of fresh issue proceeds for repayment of certain borrowings, and spend Rs 80.6 crore for purchase of plant and machinery. The remainder funds will be used for general corporate purposes.

As of June 2025, the total outstanding borrowings of the fund and non-fund-based borrowings availed by the company was Rs 330.8 crore, the company in its draft document filed on September 1 said.

The company, which competes with listed peers like Kaynes Technology, Avalon Technologies, Dixon Technologies, PG Electroplast, and Amber Enterprises, has recorded net profit at Rs 46 crore for the year ended March 2025, soaring 72 percent compared to Rs 26.7 crore in the previous year.

In the same period, revenue increased by 35.9 percent to Rs 787.3 crore, up from Rs 579.4 crore.

Motilal Oswal Investment Advisors, and IIFL Capital Services are appointed as the merchant bankers for the UKB Electronics.