Highness Microelectronics Files DRHP for BSE SME IPO: Fresh Issue of 16.53 Lakh Shares and OFS Component

Mumbai, October 3, 2025: Highness Microelectronics Limited has filed its Draft Red Herring Prospectus (DRHP) with the capital markets regulator, proposing to raise funds through an initial public offering (IPO) on the BSE SME platform. The issue comprises a fresh issue of up to 16,53,600 equity shares and an offer for sale (OFS) of up to 1,52,400 equity shares by promoter shareholders, taking the total issue size to 18,06,000 shares.

The IPO will be a 100% book-built issue, with details such as the price band, bidding dates, lot size, and final offer size to be announced closer to the opening. Fintellectual Corporate Advisors Pvt Ltd has been appointed as the Book Running Lead Manager, while Skyline Financial Services Pvt Ltd will serve as the Registrar to the Offer.

Highness Microelectronics was founded in 2007 as a private company but was converted into a public limited company in 2024. It develops, designs, assembles, integrates, and produces display and digital imaging solutions. Its portfolio includes display controller boards, LCD modules, display enhancement products, backlight drivers, as well as touchscreens.

The company also produces industrial-grade, medical-grade, and transport-specific monitors used in industrial automation, medical care, passenger rail and subway systems, as well as defense and surveillance applications.

It is an ISO 9001:2015 and ISO 13485:2016 certified company. It has its registered office in Mumbai. It has manufacturing facilities at Rabale, Navi Mumbai. Its promoters are Gaurav Manjul Kejriwal, Manjul Kumar Kejriwal, and Shruti Gaurav Kej.

Financial Performance (Restated)

In FY25, the company reported revenue of ₹141.74 million and a profit after tax (PAT) of ₹24.73 million. Earnings per share (EPS) stood at ₹7.04, supported by a net worth of ₹65.42 million. Total borrowings were at ₹49.27 million during the same period. The company delivered a strong return on equity (ROE) of 46.61%, while its net asset value (NAV) per share was recorded at ₹18.64.

Objects of the Issue

The company proposes to utilise net proceeds from the fresh issue towards:

• Capital Expenditure: Installation of an Indo-Gangjee making line as part of the localization of open-cell production at the Rabale facility (₹5.00 crore)
• Working Capital: ₹5.50 crore
• Debt Repayment/Prepayment: ₹2.10 crore
• General Corporate Purposes: Balance funds within regulatory limits

Promoter Selling Stake

The OFS component will witness the promoters reduce their shareholding in part:

• Gaurav Manjul Kejriwal: Up to 38,400 shares
• Manjul Kumar Kejriwal: Up to 1,14,000 shares

Promoter groups and the promoters collectively owned 99.90% of the company before issue. Their shareholding after the issue shall stand reduced proportionately in accordance with the allotment.

Strengths & Opportunities

• Backward Integration: Planned COG and FOG assembly line to reduce import dependence and improve margins.
• Niche Focus: Industrial, medical and transport-grade display products for selective end-user applications.
• Certificates: Standards gaining acceptance in medical and industrial use.
• Capacity Headroom: FY25 utilization was 30.53% for industrial monitors and 19.02% for medical monitors, leaving some buffer for ramping up production.

Risks

• Customer Concentration: The company’s top 10 customers accounted for 84.51% of sales in FY25.
• Supplier Dependence: A single key supplier contributed to 89.60% of the company’s purchases.
• Import Dependence: Imports made up 89.68% of FY25 acquisitions, with no foreign exchange hedging policy in place.
• Working Capital Intensity: Operations are capital-intensive, with high inventory requirements and extended collection cycles.
• Regulatory and Tax Matters: The company has some prior non-compliances and ongoing tax proceedings.
• Leased Premises: The business relies on leased facilities for both office and factory operations.

Lead Manager & Registrar

• Book Running Lead Manager (BRLM): Fintellectual Corporate Advisors Pvt Ltd, Noida
• Registrar: Skyline Financial Services Pvt Ltd, New Delhi

Highness Microelectronics aims to move up the value chain in the display and imaging sector by cutting its reliance on imports and expanding its manufacturing capabilities. The company plans to deploy the IPO proceeds towards capacity expansion, debt reduction, and strengthening working capital. Details regarding the listing date, subscription period, and price band will be disclosed in the Red Herring Prospectus (RHP).

REF: https://www.bsesme.com/download/380452/SME_IPO InPrinciple/DRHP_Highness_20250930212245.pdf

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