Bhagwati Products may delay IPO by up to 3 quarters

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, ET BureauLast Updated: Aug 11, 2026, 06:26:00 AM IST

Synopsis

Bhagwati Products may delay its initial public offering by several quarters. Volatility in memory chip prices hinders production forecasts for electronics manufacturers. The company awaits details of the government's second production-linked incentive scheme. This delay impacts investment plans and capital requirements for the firm. Bhagwati Products is a joint venture between Micromax Informatics and China's Huaqin Technology.

Kolkata: Bhagwati Products, an electronic manufacturing services JV between Micromax Informatics and China's Huaqin Technology, may postpone its proposed IPO by two to three quarters as volatility in memory chip prices makes it difficult for brands to provide production forecasts, director Rajesh Agarwal said.

The ₹18,000-crore company, which has clients including Vivo, Oppo and Hisense, had planned to launch the IPO in early 2027, targeting a valuation of more than ₹20,000 crore and an issue size of about ₹2,000 crore to ₹5,000 crore. Vivo accounts for nearly 40% of Bhagwati's business.

Bhagwati is also awaiting details of the government's second production-linked incentive (PLI) scheme for mobile phones, known as the Mobile Phone Manufacturing Scheme, which has a budgetary outlay of ₹62,500 crore, before finalising its investment plans and capital requirements.

"We want to do an IPO but the timeline is not yet decided. We need to give guidance for the next three years and with details of the second mobile PLI still not available, volatility in memory chip prices and the slowdown in the smartphone market, it's difficult at this time," Agarwal said.

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"Brands are not able to give production projections due to memory prices and are cutting supplies. So, the IPO will be delayed by a couple of quarters or more," he said.

Bhagwati had been in the process of appointing merchant bankers for the IPO, but all proceedings have now been put on hold, Agarwal said.

The promoters had been expecting a valuation of at least $2 billion, he said, but were not rigid on the target. The majority of the IPO proceeds are expected to come from a fresh issue of shares, with the funds going to the company.

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