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Exicom Tele-Systems IPO Booked over 133 Times, Massive Response from Investors

Exicom Tele-Systems

Gurgaon-based Exicom Tele-Systems rolled out its IPO on 27th February 2024, which remained opened till 29th February 2024. The issue, which was a combination of fresh shares and existing shares, had a size of Rs. 429 crore.

Overall the issue was subscribed 133.56 times, out of which the portion allotted for Qualified Institutional Buyers (QIBs) was subscribed 124.82 times, shares for Non Institutional Investors (NIIs) were subscribed 159.29 times, and the share for retail investors was subscribed 124.27 times.

About Exicom Tele Systems

Exicom EV Charger
Exicom EV Charging Station

Exicom Tele-Systems was established in 1994, and the company was chiefly involved in the manufacture of DC power systems in the initial years of its incorporation. In 2013, the company diversified into the Energy Storage Systems (ESS) business, and brought out Lithium-ion (Li-ion) based ESS specifically for use in the telecommunication sector. Later Exicom entered the Electric Vehicle (EV) industry and started providing EV charger and EV battery solutions.

Since then, the company has operated in two verticals: power systems for digital communication networks, and EV charging solutions.

The company has installed over 70,000 AC and DC EV chargers in India and other parts of Southeast Asia. Exicom Tele-Systems has provided EV charging solutions to companies such as Kia, Hyundai, Audi, Volvo, BLU Smart Mobility, TATA Motors, and more.

The company’s top line stood at Rs. 707.93 crore in FY-23.

Exicom Tele-Systems has Mr. Anant Nahata as its MD and CEO, who is the son of Mr. Mahendra Nahata, MD of Himachal Futuristic Communications Ltd. (HFCL). Interestingly, HFCL holds 7.74% equity in Exicom Tele-Systems.

Shares Offered in Rs. 135-142 Price Band, Minimum Lot Size 100

Exicom Tele-System’s shares were offered in the Rs. 135-142 price band, and the lot size for interested investors had been specified as 100 shares. This translated to a minimum investment of Rs. 14,200.

The issue offered 2,31,69,014 fresh shares, from which the company sought to raise Rs. 329 crore, and 70,42,200 existing shares, from which Exicom intended to raise Rs. 100 crore. Exicom Tele-System’s Red Herring Prospect (RHP) mentions NextWave Communications Pvt. Ltd., which holds 76.55% equity in the company, as the ‘Promoter selling shareholder’ for this IPO. These shares had a face value of Rs. 10 each.

Exicom Tele-System IPO Reservation

Out of the total offered shares, 33.50% were reserved for QIBs, 15% were available for NIIs and 10% of the shares were open for retail investors.

The remaining 41.50% of the shares had been offered to anchor investors, and the company raised about Rs. 178.05 crore from these shares. Major anchor investors in this IPO were Quant Mutual Fund-Quant Momentum Fund, Bajaj Allianz Life Insurance Company Ltd., JM Financial Mutual Fund-JM Flexicap Fund, and more.

IPO Proceeds to Fund CapEx, R&D, Working Capital Requirements & Debt Repayment

Exicom Tele-Systems will be utilising the net proceeds from its IPO for funds to develop its new facility in Telangana, for Research and Development (R&D) purposes, to meet working capital requirements, and for partial or full repayment or prepayment of its borrowings.

Out of the total proceeds, about Rs. 145.77 crore will be used for setting up the company’s Telangana facility. Moreover, in FY-24, the company intends to use Rs. 220 crore out of this amount, while the remaining Rs. 123.77 crore will be put to use in FY-25. In FY-25 and FY-26, Rs. 20 crore each will be spent on R&D and product development. Rs. 69 crore will be utilized in FY-25 towards the company’s working capital requirements. For repayment or prepayment of borrowings, Exicom will use Rs. 50.3 crore from its IPO proceeds in FY-24.