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Hyderabad-based XL Telecom - with interests in mobile handset assembly, solar photo voltaic system and ethanol - is open for subscription with an initial public offer, IPO of 39.56 lakh shares of Rs 10 each aggregating to Rs 60 crore. 

The Rs 400-crore company is planning to divest 39.56 lakh shares of Rs 10 each, at a price band of Rs 125-150 per equity share.

Moneycontrol conducted a poll on market experts to check whether to apply for the public issue or not. Experts said apply.

Experts/Company	Poll Result	Experts view
R S Iyer (KR Choksey)	Apply	XL Telecom is reasonably good issue. Investors should subscribe to this issue.
Manish Bhatt (Prabhudas Lilladher)	Apply	XL Telecom looks to be good issue. Investors should apply for this issue.
SP Tulsian (Investment Advisor)	Apply	XL Telecom is an average issue. Investors can subscribe to this issue.

 

 

 

 

 

The divestment constitutes 25% of the authorized share capital of the company while the balance stake would be held by the promoter. Of the total 39.56 lakh shares being divested, 50% will be for qualified institutional bidders, QIBs, 35% for retail buyers and 15% for high networth individuals, HNIs. The issue closes on December 7, 2006.

Of the total sum being raised through the IPO, Rs 20 crore will be invested in setting up facilities for surface mounting technology, SMT lines to produce parts used in mobile phones. About Rs 8-9 crore will be invested in stepping up the module making capacity of our solar photo voltaic division. The division makes solar power plants and home and street lights based on solar energy. The rest will be used for the repayment of term loan and for working capital needs.

XL Telecom also has an ethanol production facility at Nanded in Maharashtra with a capacity of 1.5 lakh litres per day.

The book runners to the company's public issue are Anand Rathi Securities and Centrum Capital.