Exicom Tele-Systems raises Rs 71 crore in pre-IPO placement

Exicom Tele-Systems IPO fund raising

Exicom Tele-Systems, which manufactures electric vehicle chargers, has raised Rs 71 crore in a pre-IPO placement, before filing the red-herring prospectus with the registrar of companies (ROC).

The company in a January 3 notice to investors said it has allotted 52,59,257 equity shares to five investors at a price of Rs 135 each.

Rare Enterprise (through Sunil Jugalkishor Anandpara and Hemal Dinesh Shah) was the biggest buyer among five investors, picking up 20 lakh shares worth Rs 27 crore, while Belgrave Investment Fund was at the second spot, buying 18,51,851 equity shares worth Rs 25 crore.

Shaurya Vardhan Sonthalia and Rajyavardhan Sonthalia each bought 3,33,333 equity shares for Rs 4.5 crore, while Monika Garware was the last investor, taking up 7.4 lakh shares for nearly Rs 10 crore.

As per the draft papers filed on September 27, 2023 with Sebi, the company intended to consider raising Rs 80 crore from the pre-IPO placement, which is a part of fresh issue.

The IPO is a mix of a fresh issuance of shares worth Rs 400 crore, and an offer-for-sale (OFS) of 74 lakh equity shares by promoter NextWave Communications.

At the time of filing the DRHP, NextWave Communications owned a 71.45 percent stake in the company.

Also read: Sanstar files papers with SEBI to raise funds through IPO

If one considers the issue price of Rs 135 per share, at which the pre-IPO placement has been undertaken, then the fund-raising through IPO (including pre-IPO placement) may be close to Rs 500 crore.

The power management solutions provider will utilise Rs 151.47 crore of the net fresh issue proceeds for setting up of production or assembly lines at the manufacturing facility in Telangana, and repay debt of Rs 50.3 crore,

A sum of Rs 69 crore will be used for incremental working capital requirements, and Rs 40 crore will be invested in R&D and product development, while the remaining fresh issue money willl be set aside for general corporate purposes.

Also read: Jyoti CNC Automation sets Rs 315-331 price band for Rs 1,000-cr IPO opening Jan 9

Incorporated in 1994, Exicom Tele-Systems operates business under two business verticals. One is electric vehicle supply equipment (i.e. EV charger) solutions business, wherein it provides smart charging systems with innovative technology for residential, business, and public charging use in India.

The second is critical power solutions business, under which it provides designing, manufacturing and servicing critical digital infrastructure technology to deliver overall energy management at telecommunications sites and enterprise environments in India and overseas.

Monarch Networth Capital, Unistone Capital, and Systematix Corporate Services are the merchant bankers to the issue.