Foxconn Singapore approved a $37.2 million investment in its India subsidiary to strengthen long-term manufacturing operations and expand production capacity
New Delhi
Foxconn Singapore, a subsidiary of Taiwan’s Hon Hai Technology Group, has approved an investment of $37.2 million in its India-based subsidiary, Foxconn Hon Hai Technology India Mega Development Private Limited, as part of its long-term investment strategy.
According to the company’s regulatory filing, the board of directors approved the investment through the subscription of approximately 351.73 million common shares of the Indian subsidiary at a face value of Rs 10 per share. The total transaction value stands at about $37.2 million.
The filing stated that the investment is being made through a capital increase in the wholly owned subsidiary and will be funded using private capital. The company described the move as a long-term investment aimed at strengthening its manufacturing presence in India.
Following the transaction, Foxconn Singapore will continue to hold virtually the entire equity in Foxconn Hon Hai Technology India Mega Development Private Limited, amounting to more than 23.18 billion shares with a cumulative investment of approximately $2.82 billion.
The remaining 10 shares of the Indian subsidiary are held by Yuzhan Technology (India) Private Limited, another entity within the Foxconn group.
Foxconn clarified that the investment does not involve any change in its business model. It also stated that no broker participated in the transaction and that the board approved the investment without any dissenting opinions from directors.
According to the filing, the investment represents about 3.55 per cent of the group’s total assets and 7.72 per cent of shareholders’ equity based on its latest financial statements.
Foxconn is among the world’s largest electronics manufacturing services providers and has significantly expanded its manufacturing footprint in India through investments in multiple production facilities over recent years.
The latest investment comes as India’s electronics manufacturing sector continues to grow. Earlier this year, shipments of ‘Made in India’ smartphones rose 8 per cent year-on-year, driven by a 28 per cent increase in exports. Foxconn Hon Hai emerged as one of the biggest beneficiaries, recording a 48 per cent year-on-year rise in exports, supported by strong Apple smartphone shipments from its Indian manufacturing operations.
