Bhagwati Products may delay IPO amid chip price swings

Bhagwati Products said it is considering postponing its planned initial public offering by as much as three quarters, citing uncertainty driven by volatile memory-chip prices and a lack of clarity on policy incentives. The company said it has not set a fixed timetable for a potential listing.

The company explained that sharp moves in memory-chip prices are making it harder for electronics manufacturers to decide production volumes and forecast revenue with confidence. It added that the same instability is affecting how it schedules output and evaluates near-term financial performance while weighing an equity sale.

IPO timing tied to visibility on input costs

Bhagwati Products said input-cost instability has become a central obstacle to committing to a firm IPO schedule. In its view, fluctuating memory-chip prices are complicating production planning not only for the company, but across the broader electronics supply chain.

The company said managers need clearer visibility on key input costs before it can move ahead with an offering. It also indicated that if the listing is pushed back, near-term fundraising could be affected, linking the timetable to its ability to produce more dependable operational and financial forecasts.

Manufacturing planning and financial forecasting pressures

According to the company, the challenge is not limited to procurement. It said price swings can feed into decisions on how much to produce and when, which in turn can make revenue projections less reliable over the near term.

Bhagwati Products added that these factors shape how it assesses performance as it evaluates an IPO, underscoring that the decision hinges on whether costs become easier to plan around.

PLI scheme details remain a key trigger

The company said it is also awaiting details of the government’s second production-linked incentive (PLI) scheme before finalising its IPO schedule. It described the PLI terms as material to its capital requirements and investment plans, suggesting the eventual rules could influence how much funding it seeks and how it allocates capital.

Officials said investors will watch whether the government publishes the second PLI scheme details by December 31, 2026. Company officials linked the eventual IPO timing to those incentive rules and said the issue would be a focal point for market participants.

Joint venture structure and what is still unknown

Bhagwati Products is a joint venture between Micromax Informatics and Huaqin Technology. The company referred to its partnership structure while discussing manufacturing and investment planning, while emphasising that IPO decision-making depends on improved visibility into both costs and incentives.

For now, it said the timeline remains dependent on the pending PLI framework and on whether chip-price movements become more manageable for planning.

Macro data cited alongside the update

Separate data cited alongside the company’s remarks included an IMF projection for USA 2026 real GDP growth of 2.1%, up from a previous 2.0% estimate. The company did not link its IPO planning directly to that macro projection in its statement.