Exicom Tele-Systems IPO: Issue subscribed 129.54 times, retail portion booked 120x on Day 3

Exicom Tele-Systems IPO: Ahead of the IPO, the company raised Rs 178 crore from anchor investors on February 26

Exicom Tele-Systems IPO has subscribed 129.54 times on the final day of bidding, February 29. High networth individuals remained at the forefront, subscribing 153.22 times, retail investors picked 119.58 times, while qualified institutional buyers bid 121.80 times of the allotted quota.

The Gurugram-headquartered EV charger manufacturer intends to raise Rs 429 crore through its maiden public issue. The IPO comprises a fresh issue of Rs 329 crore worth of shares by the company and an offer-for-sale (OFS) of 70.42 lakh shares worth Rs 100 crore at the upper price band. Promoter NextWave Communication will be selling shares in the OFS.

Also Read: Exicom Tele-Systems IPO: Should you subscribe to Rs 429-crore public offer?

NextWave Communications, Satellite Finance, and Vinsan Brothers hold a 76.55 percent, 4.64 percent, and 4.35 percent stake in the company, respectively. HFCL has a 7.74 percent stake. The rest of the shares are held by public shareholders including Rare Enterprise.

The financials

Exicom Tele-Systems will spend Rs 145.77 crore for setting up production/assembly lines at a manufacturing facility in Telangana, Rs 69 crore for working capital requirements, and Rs 40 crore for investment in R&D and product development. Further, Rs 50.3 crore will be used for repaying debts and the remaining will be set aside for general corporate purposes. It had a debt of Rs 95.34 crore on its books at the end of December 2023.

Also Read: Exicom Tele-Systems IPO: 10 things to know before subscribing to the Rs 429-cr issue

Ahead of the IPO, the company raised Rs 178 crore from anchor investors on February 26. Several marquee investors participated in the offer including Maybank Asiapac Ex-Japan Equity I Fund, Nepean Long Term Opportunities Fund, Abakkus Diversified Alpha Fund, Quant Mutual Fund, JM Financial Mutual Fund, Aditya Birla Sun Life Trustee, and SBI General Insurance Company.

Exicom Tele-Systems operates as a power management solutions provider with two primary business verticals. Firstly, in the EV chargers business, the company offers smart charging systems for residential, business, and public charging applications in India.

Also Read: IPO-bound Exicom Tele-Systems aims to increase revenue from EV charging solutions

Secondly, in the critical power solutions business, the company specialises in designing, manufacturing, and servicing critical digital infrastructure technology. This technology is geared towards ensuring comprehensive energy management at telecommunications sites and enterprise environments, both in India and internationally.