Fiem Industry successfully raise Rs 120 crore via QIP

MUMBAI: Fiem Industries, a leading player in the automotive industry successfully raised Rs 120 crore through placement of equity shares to qualified institutional buyers. The Issue, which got over subscribed, saw interest from both for domestic and foreign institutional investors.

QIP proceeds would help FIEM fund its international JVs and expand its existing automotive/LED facility, said the company. “Given FIEM track record with marque clients like Honda, Yamaha, Suzuki etc, and unrelenting management focus, the new initiatives will be significant game changer with regard to company’s scale of operations, product range and client base over next few years” said Gaurav Bhandari, MD, Centrum Broking who was the sole lead manager to the issue.

Seven companies have raised about Rs 800 so far this year till August through QIPs compared to 32 companies which raised Rs 19065 crore in 2015.

Fiem Industries is the supplier of automotive lighting, signalling equipment and rear view mirrors to marquee clients like Honda 2W, TVS Motors, Yamaha 2W, Suzuki 2W. Fiem’s focus on R&D and quality has helped them break some of the most competitive export markets like Japan, UK, Germany, Indonesia, Thailand and Vietnam.

Over last ten years, Fiem has grown at CAGR of 22% both in terms of profit and sales. Fiem has maintained healthy margins/return ratios (c. 12.5% average operating margin/ c. 20% ROE over FY12-16) and generated robust cash flows coupled with a strong balance sheet. All expansion till date has been funded by internal accruals highlighting strong financial discipline.