Ekkaa Electronics Files Draft Papers with SEBI for Rs 725 Crore IPO

Electronic design and manufacturing services provider Ekkaa Electronics (India) Limited has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) to raise up to ₹725 crore through a mainboard initial public offering (IPO).

The public issue will feature a blend of primary capital mobilization and secondary share dilution, proposed to be listed on both the BSE and the National Stock Exchange of India (NSE).

Issue Structure and Key Participants

The proposed ₹725 crore public offer comprises:

• Fresh Issue: Up to ₹525 crore of new equity shares.
• Offer for Sale (OFS): Up to ₹200 crore worth of equity shares offloaded by promoter shareholders Chandra Prakash Gupta (up to ₹100 crore) and Madhuri Gupta (up to ₹100 crore).

The company may also consider raising up to ₹105 crore via a pre-IPO placement prior to filing the definitive Red Herring Prospectus (RHP) with the Registrar of Companies. If executed, the quantum raised in the pre-IPO round will be reduced proportionately from the fresh issue component.

Motilal Oswal Investment Advisors Limited and Shannon Advisors Private Limited are acting as the book-running lead managers, while Bigshare Services Private Limited has been appointed as the registrar to the issue.

The issue reservation is structured as follows:

• Qualified Institutional Bidders (QIBs): Not less than 75% of the net issue.
• Non-Institutional Investors (NIIs): Not more than 15% of the net issue.
• Retail Individual Investors (RIIs): Not more than 10% of the net issue.

Utilization of Proceeds

According to the DRHP, Ekkaa Electronics intends to deploy the net proceeds from the fresh capital issue toward the following core operational and financial requirements:

• Debt Reduction: ₹225 crore will be utilized for the prepayment or scheduled repayment of outstanding borrowings, easing interest burdens on the company's balance sheet. The company's total borrowings stood at ₹396.1 crore as of June 2026.
• Working Capital Requirements: ₹150 crore is allocated to meet recurring operating capital needs to support expanding production pipelines.
• General Corporate Purposes: The balance of the net proceeds will be deployed for general corporate overheads and operational flexibility.

Prominent Pre-IPO Backers and Financials

Ekkaa Electronics counts prominent domestic marquee investors among its external shareholders. Veteran fund manager Sunil Singhania’s Abakkus Asset Manager, via the Abakkus Four2eight Opportunities Fund, holds a 6.5% equity stake following an investment in July 2026. Ace investor Mukul Mahavir Agrawal holds a 2.7% stake after entering the company through a private placement in September 2025.

Operationally, the company functions as an integrated Original Design Manufacturer (ODM) and Original Equipment Manufacturer (OEM) across consumer electronics, including LED televisions, washing machines, air coolers, multimedia speakers, induction cooktops, and smart displays. The manufacturer also fabricates sheet metal parts, back covers, and casings in-house.

Financially, Ekkaa Electronics reported a consolidated revenue from operations of ₹1,221.7 crore and a consolidated net profit after tax of ₹65.3 crore for the financial year ended March 31, 2026, positioning the company among expanding players capitalizing on India's push for domestic electronics manufacturing.

Tags: Ekkaa Electronics SEBI IPO Motilal Oswal Consumer Electronics EMS Sector