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Informist, Tuesday, Sept. 29, 2026

NEW DELHI – Biocon Electric Ltd. Tuesday filed a draft red herring prospectus with the Securities and Exchange Board of India for an initial public offer comprising a fresh issue of up to 4.8 million shares and an offer for sale of up to 1.1 million shares. Each share will have a face value of INR 10.

Under the offer for sale component, promoters Prakash Chand Jain, Ranjeet Kumar Jain, Praveen Kumar Jain, Vikram Kumar, and Milap Chand Jain will each offload up to 220,000 shares. The company aims to use the proceeds from the fresh issue to meet working capital requirements and for general corporate purposes.

Biocon Electric is engaged in the manufacturing, processing, assembly, marketing, and distribution of electrical and electronic products under the "Biocon" brand name. As of Mar. 31, the business comprised 1,915 channel partners across 25 states and four Union territories. As per the restated financial statement, the company recorded a net profit of INR 141.41 million for 2025-26 (Apr-Mar) on revenue of INR 1.97 billion.

Outlining the risk factors, the company said its distribution network is significantly concentrated in southern India. As of Mar. 31, 1,427 of the 1,915 channel partners were located in this region. Biocon Electric also said its principal manufacturing, processing, and assembly activities are carried out at a limited number of facilities. Further, the company's top 10 suppliers accounted for 60-70% of its total material purchases in the last three financial years. Purchases of materials and components from overseas suppliers contributed between 31% to a little over 43% in the same timeframe.

Biocon Electric said it derives a substantial portion of its revenues from polyvinyl chloride insulated wires and tapes and lighting solutions. These categories contributed 75.53% of the company's revenues for FY26, 88.06% for FY25, and 92.42% for FY24. The company's operations are working capital-intensive and involve maintaining significant inventory levels. 

There are no outstanding criminal proceedings against the company and its directors. 

The offer is being made through the book building process wherein not more than 50% of the issue will be reserved for qualified institutional investors and at least 15% will be set aside for non-institutional bidders. Not less than 35% will be allocated to retail investors. GYR Capital Advisors Pvt. Ltd. is the book-running lead manager for the exercise and Bigshare Services Pvt. Ltd. is the resgistrar. The shares are proposed to be listed on the National Stock Exchange and BSE. (Shakshi Jain)

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Edited by Avishek Dutta

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