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<ul><li><keyword id="168792" type="General" weightage="20" keywordseo="foxconn-technology-group" source="Orion">Foxconn Technology Group</keyword>’s Indian subsidiary <keyword id="12295528" type="General" weightage="20" keywordseo="bharat-fih" source="Orion">Bharat FIH</keyword> has filed for ₹5,000 crore <keyword id="6354763" type="General" weightage="20" keywordseo="ipo" source="Orion">IPO</keyword> with <keyword id="35210" type="General" weightage="20" keywordseo="sebi" source="Orion">SEBI</keyword>.</li><li>The IPO comprises a fresh issue of ₹2,500 crore and an offer for sale of ₹2,500 crore.</li><li>In the last three years, the revenues from Xiaomi have been shrinking because of increased competition in the mobile phone market from large players like <keyword id="10591" type="General" weightage="20" keywordseo="samsung" source="Orion">Samsung</keyword>.</li></ul>Taiwan-based Foxconn Technology Group’s Indian subsidiary Bharat FIH, which manufactures Xiaomi phones in the country, has filed for a ₹5,000 crore initial public offering (IPO) with India’s market regulator – the Securities and Exchange Board of India (SEBI). The IPO comprises a fresh issue of ₹2,500 crore and an offer for sale (OFS) of ₹2,500 crore.<br /><br />Bharat FIH is among the largest electronic manufacturing services (EMS) providers in India, with approximately 15% market revenue share in the financial year 2020-2021 (FY21). It runs operations across three campuses in India, which integrates manufacturing, warehousing, logistics and accommodation facilities.<br /><br />The company derives most of its revenue from Xiaomi, which is the leader in the Indian smartphone industry with 27% market share by volume in FY21, according to its draft red herring prospectus (DRHP).<br />In the last three years, the revenues from Xiaomi have been shrinking because of increased competition in the mobile phone market. The company is losing market share to companies like Samsung, <keyword id="215177" type="General" weightage="20" keywordseo="vivo" source="Orion">Vivo</keyword> and <keyword id="1731609" type="General" weightage="20" keywordseo="oppo" source="Orion">Oppo</keyword>.<br /><table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Year<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Revenue<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2019<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹30,094 crore<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2020<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹23,501 crore<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2021<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹14,908 crore <br /><br /></td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>“The concentration of our sales in Xiaomi exposes us to a number of risks that could have a material adverse effect on our revenue and profitability. Sales of our services to Xiaomi could decline as a consequence of several factors, such as lower demand for Xiaomi’s mobile phones in the Indian market on account of changing consumer preferences or an increase in the market share of Xiaomi’s competitors, or on account of our inability to fulfil Xiaomi’s purchase orders in the required quantities or quality and on schedule,” the company said in its DRHP.<br />            <div type="image" title="xiaomi market share (2)" msid="88450867" hostid="261"></div><br />The company is also expanding business into industries other than mobile phones, with a focus on high-growth industries that benefit from market tailwinds, including mechanics, electric vehicles, televisions, and hearables.<br /><br />In the electric vehicle segment, it supplies critical electronics components such as infotainment, battery management system, engine control systems, hands-free communication system etc for manufacturing of electric vehicles.<br /><br />In fact, it wishes to expand this segment of business and intends to apply for the electric vehicles (components category) and hearables’ production-linked incentives (PLI) schemes when applications are available. <br />          <div type="image" title="bharat FIH" height="900" width="1200" msid="88450893" hostid="261"></div><br />The electronic manufacturing services (EMS) player will utilise the IPO proceeds towards funding capital expenditure requirements for upgradation and expansion of existing campuses.<br /><br />Another unit of Foxconn, which is FIH Mobile, is listed in the Hong Kong market. <br /><br /><strong>SEE ALSO: </strong><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/5-chinese-1-indian-company-lost-their-unicorn-status-hurun-global-unicorn-list-2021/slidelist/88448999.cms">Nine companies lost unicorn status</a><br /><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/cryptocurrency/news/no-india-crypto-bill-in-sight-even-after-winter-session-of-parliament-comes-to-a-close/articleshow/88449161.cms">India ends Winter Session of Parliament with no crypto bill in sight</a><br /><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/medplus-health-services-ipo-makes-a-positive-stock-market-debut/articleshow/88445242.cms">MedPlus Health Services debuts on a good note with 27% premium</a>

IPO-bound Xiaomi phone maker in India faces tough challenge from a prowling Samsung

<p class="p1"><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div><p></p></div></div><strong><em>FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.</em></strong></p>
<p class="p4"><span class="s1"><a href="http://www.investmentnews.com/article/20140915/FREE/140919961/alibaba-ipo-not-high-on-advisers-to-do-list"><strong>Advisers Are Going To Wait And See What Happens With The Alibaba IPO</strong></a></span><span class="s2"><strong> (Investment News)</strong></span></p>
<p class="p3">Advisers are worried that all the hype around the Alibaba IPO is reminiscent of the <a href="http://www.businessinsider.com/chart-of-the-day-facebook-has-the-worst-ipo-of-the-decade-2012-5">Facebook IPO, which flopped</a> for people who bought on the first day. So they're going to stay out until it's all over. "There seems to be plenty of demand for the deal, but it all reminds me of Facebook," Josef Schuster, manager of the First Trust US IPO ETF, said. "So much buzz, and they say all the order books are full, and they keep raising the price, and that probably means a lot of investors will be buying at an inflated price.</p>
<p class="p3">"Most IPOs are overpriced at the offering, so we're going to wait until it's all over and then take a look at it," said Theodore Feight, owner of Creative Financial Design.</p>
<p class="p3">"We are about to see what may be the biggest IPO in history, which is increasing in price due to growing demand," added Joseph Witthohn, vice president at Emerald Asset Management. "While the price may be justified, it is quite possible a slew of investors, who have possibly missed strong run-ups in other stocks, will want to buy this because they can't bear to think another boat might leave the dock without them on board."</p>
<p class="p2"><span class="s1"><a href="http://blog.alliancebernstein.com/index.php/2014/09/16/finding-fashion-in-asian-small-caps/"><strong>Niche Taiwan Textile Companies Are Having A Moment Thanks To Millennial Fitness Fanatics</strong></a></span><span class="s2"><strong> (AllianceBernstein)</strong></span></p>
<p class="p1">Investors who are looking for up-and-coming growth need to look to niche Asian companies - and specifically Taiwanese textile groups, according to AllianceBernstein's Liliana Castillo Dearth. These firms have made "significant investments in functional fabrics - materials ideal for athletic apparel that's useful <em>and</em> fashionable," and now these investments are paying off because of the huge demand for "fashion-forward sportswear."</p>
<p class="p1">Millennials - part of the fitness-conscious generation - are driving the demand for fashionable sportswear. And a recent Goldman Sachs report estimated that "health-conscious and hyperactive millennials will, over the next five years, go from being the smallest spenders on consumer staples and discretionary items to the biggest spends, with average annual growth of 3%-4%."</p>
<p class="p1">Global sales of sports apparel have been steadily rising since 2007, reaching $162 billion in 2013. Euromonitor International estimates that global sales will top at $219 billion in 2018. "We think that all of this adds up to healthy growth potential for textile firms with the ability to supply Nike, Under Amour and other athletic apparel and footwear makers with clothing that's both functional and fashionable," writes Dearth.</p>
<p class="p2"><span class="s1"><a href="http://www.fa-mag.com/news/why-millennial-women-will-likely-be-your-clients-19198.html"><strong>Millennial Women Are Going To Be The Next Huge Client Base For Advisers</strong></a></span><span class="s2"><strong> (Financial Adviser Magazine)</strong></span></p>
<p class="p3"><span class="s3">Millennial women are increasingly delaying motherhood, in order to take advantage of the benefits from education and work. S</span>tudies show that for every year that motherhood is delayed, career earnings increase by 9%, work experience by 6%, and the average wage rates by 3%. </p>
<p class="p3">"The difference in labor force participation rates between men and women 20 to 24 years old reached a record low at the end of last year, according to data from the Labor Department. The rate was at 66.9 percent in August for young women, compared with 73.8 percent for young men."  </p>
<p class="p3">Plus, more women than men hold a bachelor degree. By age 27, 32% of women have a degree, as compared with onl 24% of men. And these strides in education boost women's potential earnings power - those with a bachelor's degree made 57% more than those holding only a high school diploma in 2012.</p>
<p class="p3">As households become increasingly dependent on female employment and earnings, U.S. fertility rates will probably continue to decline, said Mark Mather, associate vice president of domestic programs at the Population Reference Bureau in Washington. Employed married women's earnings are now 44 percent of their families' total, up from 37 percent in the 1970s, according to a presentation earlier this year from President Barack Obama's Council of Economic Advisers.</p>
<p><span class="s1"><a href="http://news.morningstar.com/articlenet/article.aspx?id=665087"><strong>A Hybrid Distribution Approach Simulation Performs Well</strong></a></span><span class="s2"><strong> (Morningstar)</strong></span></p>
<p class="p3">Morningstar's Christine Benz took a look at how a "hybrid of an income oriented and total-return approach would have performed since 2000, the start of the dotcom meltdown."</p>
<p class="p3">The group assumed that their "test subject" was a 65-year old couple with a $1.5 million portfolio and an anticipated 25 to 30-year time horizon. Plus, they assumed a 4% withdrawal in year one of retirement ($60,000) and a 3% annual inflation adjustment to that initial $60,000.</p>
<p class="p3">"The hybrid approach, combined with a version of our model bucket portfolio, performed well during the time period studied. Not only did it provide cash flow in line with our planned distribution rate, but it also ended comfortably above the portfolio's starting value--reassuring, in that the period studied, 2000-13, encompassed the bursting of the dotcom bubble as well as the financial crisis from 2007-09. In fact, the value of the ending portfolio in our hybrid simulation was higher than the ending value of the portfolio in the simulation where we employed a pure total-return approach," writes Benz.</p>
<p class="p4"><span class="s1"><a href="http://www.financial-planning.com/30-days-30-ways/emerging-markets-bond-rally-will-continue-advisors-say-2690438-1.html"><strong>Advisors Believe That The Emerging Markets Rally Isn't Ending Anytime Soon </strong></a></span><span class="s2"><strong>(Financial Planning)</strong></span></p>
<p class="p3">"Emerging markets bond funds topped all fixed-income categories with a 10 year annualized return of 8.3% through last month, nearly double the 4.4% return of domestic long-term bond fund," and financial advisors think that this rally isn't ending anytime soon.</p>
<p class="p3">One major reason is because of the "relatively" high yield of emerging markets bonds. Additionally, investors are still favoring EM bonds because their home nations are "reporting faster economic growth than the United States and other developed nations."</p>
<p class="p3">Plus, as the emerging markets' economies grow, the credit quality of emerging nations' bonds improve, according to Michael Francis, the president and CEO of Francis Investment Counsel. Higher credit quality makes the bonds more secure, which attracts more buyers - and then the bond's prices are strengthen by the increased demand.</p>

FINANCIAL ADVISOR INSIGHTS: Pros Fear The Alibaba Pre-IPO Buzz Is A Little Too Reminiscent Of The Facebook Flop

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IPO-bound Xiaomi phone maker in India faces tough challenge from a prowling Samsung

Bhakti Makwana

FINANCIAL ADVISOR INSIGHTS: Pros Fear The Alibaba Pre-IPO Buzz Is A Little Too Reminiscent Of The Facebook Flop

Elena Holodny

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