Integrated electronic manufacturing services (EMS) company, UKB Electronics, has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The UKB Electronics IPO is a combination of fresh issue and offer for sale (OFS). Book-running lead managers are Motilal Oswal Investment Advisors and IIFL Capital Services, while KFin Technologies is the registrar of the issue.
UKB Electronics IPO Structure & Use of Proceeds
- Fresh issue: up to INR 400 crore
- Offer for sale: up to INR 400 crore by promoters Manoj Tayal (INR 135 Cr), Vinay Kumar Tayal (INR 135 Cr), and Manik Tayal (INR 130 Cr).
- Use of fresh proceeds:
- INR 221.28 crore for pre-payment/repayment of borrowings
- INR 80.58 crore for plant & machinery at existing facilities
- Balance for general corporate purposes (amount to be finalized; may factor any Pre-IPO placement of up to ₹80 crore).
UKB Electronics IPO: Company Overview
UKB is an end-to-end EMS provider spanning product design → prototyping → manufacturing → testing, serving marquee OEMs across home appliances/consumer electronics and strategic electronics. Named customers include LG Electronics India, Panasonic Appliances India, Carrier Midea, Haier, IFB, Voltbek, Liebherr, Versuni, and Dixon (among others). Between Apr 2022–Mar 2025, UKB served 675 customers, including 22 India Fortune 500 (10 PSUs) and one Global Fortune 500.
Product portfolio: electronic distribution systems (wiring harnesses/cable assemblies), appliance power cords, remotes & PCBAs, specialty/EBXL wires and cables, EV charging guns/cables, and select IT adapters/chargers.
Scale & footprint
UKB operates 11 manufacturing facilities across Noida, Pune, Ahmednagar (Supa), Ghiloth (Rajasthan), Goa, Sri City (AP), and Chennai, supplemented by warehouses in Ahmedabad, Shirwal, Chennai, and a 3PL warehouse in Mexico. Several sites are port-proximate to aid exports. Backward integration spans brass components & plating, moulding, conductor (copper) drawing, and compounding.
A notable differentiator is an AERB-approved electron-beam (E-beam) facility (Ghiloth) enabling EBXL cables for demanding applications (defence, rail/metro, industrial). The company cites ~170 country-specific certifications (UL, VDE, DEKRA, ESTI, ASTA-UK, PSE, SASO, GCC, etc.).
Installed capacity & utilization (FY23–FY25)
- Electronic distribution systems: 74.0 crore units installed / 4.80 crore produced in FY25 (64.9% utilisation; FY24 75.5%)
- Appliance cord assemblies: 53.0 crore / 3.37 crore (63.6%; FY24 72.4%)
- Remotes/PCBAs: 0.40 crore / 0.259 crore (64.8%; FY24 75.6%)
- Specialty wires & cables: 132.0 million meters / 17.85 million meters (13.5%; note sharp capacity ramp in FY25 vs FY24 installed 5.10 million meters)
Financials Snapshot
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue from operations | 529.55 | 579.37 | 787.27 |
| EBITDA | 59.84 | 58.04 | 96.95 |
| EBITDA margin | 11.30 | 10.02 | 12.31 |
| PAT | 19.17 | 26.75 | 46.02 |
| PAT margin* (%) | 3.60 | 4.51 | 5.82 |
| RoNW (%) | 14.97 | 16.88 | 22.52 |
| RoCE (%) | 23.29 | 20.99 | 27.78 |
| Debt to Equity | 1.42 | 1.11 | 1.14 |
Investment takeaways (from the DRHP)
- Growth & margin trajectory: FY23–FY25 revenue CAGR ~21.9% with visible operating leverage—EBITDA margin up ~230 bps to 12.3%; PAT up to INR 46 Cr and RoNW 22.5%.
- Strategic pivot optionality: While still consumer-heavy, strategic electronics (defence, rail/metro, industrial/renewables, EV infrastructure) is scaling from a small base; E-beam capability and certifications are enablers.
- Capacity headroom: Lower utilisation in FY25 reflects large capacity additions (especially speciality cables), suggesting a multi-year volume runway if order wins materialise.
- Balance sheet de-risking: Proposed debt repayment (~INR 221 crore) should reduce interest burden and improve coverage metrics.
- Backwards Integration & certifications: In-house conductor/compounding/moulding and global accreditations can support cost, quality and export-led growth.
Promoters Manoj, Vinay, Manik and Pradeep Kumar Tayal collectively hold 96.70% (28.49 crore shares pre-offer).
Bottom Line
UKB Electronics is positioning for public markets with a debt-trimmed balance sheet, expanded capacity, and a push into higher-spec strategic electronics, while its core remains India’s growing home-appliance value chain. Investor focus now shifts to valuation, order visibility in new verticals, and the pace at which recently installed capacities—and export certifications—translate into revenues.
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