Exicom Tele-Systems, a leading provider of electric vehicle (EV) charging solutions, accomplished a significant financial milestone by securing Rs 178 crore from anchor investors on February 26, a day before the commencement of its initial public offering (IPO). The IPO subscription period is set to open on February 27, with the closing date slated for February 29.
In its filing to the exchanges, Exicom disclosed the allocation of 1,25,38,800 equity shares to anchor investors at a price of Rs 142 per equity share. The anchor investors include reputable names such as Maybank Asiapac Ex-Japan Equity I Fund, Nepean Long Term Opportunities Fund, Abakkus Diversified Alpha Fund, Quant Mutual Fund, JM Financial Mutual Fund, Trustee of Aditya Birla Sun Life, and SBI General Insurance Company participated. Quant Mutual Fund emerged as the most substantial investor in Exicom, investing Rs 53.05 crore, followed by Bajaj Allianz Life Insurance Company, which acquired nearly Rs 20 crore worth of shares.
ITI Small Cap Fund ranked as the third-largest investor in the company through the anchor book, procuring shares worth Rs 17.5 crore. JM Flexicap Fund secured the fourth position by investing Rs 12 crore in Exicom.
Exicom Tele-Systems, headquartered in Gurugram, aims to raise Rs 429 crore through its maiden public issue. The IPO comprises a fresh issue of Rs 329 crore worth of equity 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 plans to sell shares in the Offer for Sale (OFS).
As of now, promoters hold a majority share of 93.29% in Exicom, with the remaining shares owned by public shareholders, including Rare Enterprise.
The allocated funds from the IPO will be strategically utilized by Exicom. Approximately Rs 145.77 crore will be allocated for establishing production/assembly lines at the manufacturing facility in Telangana. Another Rs 69 crore is earmarked for meeting working capital requirements, while Rs 40 crore will be invested in research and development (R&D) and product development initiatives.
A portion of the funds, amounting to Rs 50.3 crore, will be directed towards debt repayment, addressing financial obligations on the company's books as of the end of December 2023. The remaining capital will be assigned for general corporate objectives.
Exicom Tele-Systems' successful fundraising from anchor investors signifies strong market confidence in the company's prospects. As the EV industry continues to grow and gain prominence globally, Exicom's expertise in providing charging solutions positions it favorably for future expansion and innovation. The IPO is anticipated to attract significant investor interest, contributing to the company's growth trajectory in the dynamic and evolving electric vehicle ecosystem.
Exicom Tele-Systems' impressive pre-IPO funding of Rs 178 crore from anchor investors underscores the market's confidence in its EV charging solutions. With a robust lineup of reputable backers, the upcoming IPO is poised to propel Exicom's growth, reinforcing its position as a key player in the evolving electric vehicle landscape.
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