Exicom Tele-Systems Raised ₹71 Crore in pre-IPO Placement
Exicom Tele-Systems
Exicom Tele-Systems Readies for IPO: Pre-IPO Placement and Strategic Financial Moves
Exicom Tele-Systems, a trailblazer in the electric vehicle (EV) charger manufacturing sector, has embarked on a significant financial journey as it prepares for its much-anticipated Initial Public Offering (IPO).
The company recently achieved a major milestone by securing a substantial Rs 71 crore in a pre-IPO placement, signaling investor confidence in its growth trajectory.
In a disclosure to investors dated January 3, Exicom Tele-Systems revealed the allotment of 52,59,257 equity shares to five investors at a price of Rs 135 per share.
Investors and Allotments:
The largest stake in this strategic move was acquired by Rare Enterprises, represented by Sunil Jugalkishore Anandpara and Hemal Dinesh Shah.
Rare Enterprises emerged as the top investor, acquiring 20 lakh shares with a total investment of Rs 27 crore.
Following closely, Belgrave Investment Fund secured the second position, making a noteworthy investment by purchasing 18,51,851 equity shares valued at Rs 25 crore.
Additionally, individuals Shaurya Vardhan Sonthalia and Rajyavardhan Sonthalia each acquired 3,33,333 equity shares, contributing Rs 4.5 crore individually.
Monica Garware made a substantial investment, acquiring 7.4 lakh shares, totaling approximately Rs 10 crore.
Pre-IPO Placement and Expectations:
The company’s initial intention, as outlined in the draft paper submitted to the market regulator SEBI on September 27, 2023, was to raise Rs 80 crore from the pre-IPO placement.
Although the final amount secured stands at Rs 71 crore, this successful placement underscores the positive investor sentiment and sets a solid foundation for the impending IPO.
IPO Structure:
The IPO itself is set to encompass both a fresh issue and an offer for sale (OFS) of existing shares. Exicom Tele-Systems plans to issue new shares worth Rs 400 crore, representing a significant capital infusion.
Additionally, there will be an OFS of 74 lakh shares from the promoter NextWave Communications, which held a 71.45 percent stake in Exicom Tele-Systems at the time of filing the Draft Red Herring Prospectus (DRHP) with SEBI.
Merchant Bankers and Strategic Oversight:
In a move demonstrating strategic oversight, Monarch Networth Capital, Unistone Capital, and Systematix Corporate Services have been appointed as the merchant bankers for the IPO.
This choice of experienced financial entities emphasizes Exicom Tele-Systems’ commitment to a well-managed and carefully orchestrated financial undertaking.
Utilization of IPO Funds:
The funds raised from the IPO will be strategically utilized to propel various aspects of Exicom Tele-Systems’ business operations.
A significant portion will be allocated to establishing production and assembly lines at the manufacturing plant in Telangana, enhancing the company’s production capabilities.
Debt repayment will also be a key area of focus, ensuring a strengthened financial position. Moreover, the funds will be instrumental in meeting the increased working capital requirements, a crucial component for sustained operations in a dynamic market.
Furthermore, a portion of the funds will be earmarked for research and development initiatives, underscoring Exicom Tele-Systems’ commitment to innovation and staying ahead in the rapidly evolving EV industry.
The investment in product development aligns with the company’s goal of offering cutting-edge solutions in both its business verticals.
Lastly, the remaining funds will be utilized for general corporate purposes, providing flexibility and agility in responding to market dynamics.
Business Overview:
Established in 1994, Exicom Tele-Systems operates in two distinct business verticals—Electric Vehicle Supply Equipment (EV Charger) Solutions and Critical Power Solutions.
The company’s foray into EV charging solutions aligns with the global push towards sustainable and eco-friendly transportation alternatives.
As the adoption of electric vehicles gains momentum, Exicom Tele-Systems is well-positioned to capitalize on this burgeoning market.
EV Charger Solutions:
The Electric Vehicle Supply Equipment (EVSE) or EV Charger Solutions segment is a key focus area for Exicom Tele-Systems.
With the rise of electric vehicles, the demand for efficient and reliable charging infrastructure has grown exponentially.
Exicom Tele-Systems aims to play a pivotal role in this space by providing cutting-edge EV charging solutions.
The infusion of funds from the IPO will further empower the company to expand its footprint and enhance its product offerings in the EV Charger Solutions segment.
Critical Power Solutions:
In addition to its presence in the EV charging sector, Exicom Tele-Systems has a robust presence in Critical Power Solutions.
This includes providing solutions for backup power, ensuring uninterrupted operations in critical infrastructure and industries.
The company’s expertise in Critical Power Solutions adds a layer of diversification to its business portfolio, catering to a broader range of industries with varying power requirements.
Final Remarks:
In conclusion, Exicom Tele-Systems’ successful pre-IPO placement and its strategic approach to the impending IPO underscore the company’s commitment to sustainable growth.
The funds raised will not only strengthen its financial position but will also be instrumental in expanding its production capabilities, investing in research and development, and meeting the increasing demand for EV charging solutions.
As the world moves towards a greener and more sustainable future, Exicom Tele-Systems appears poised to emerge as a key player in the transformative landscape of electric mobility.
Investors and industry observers will undoubtedly be keenly watching the developments as Exicom Tele-Systems takes the next step in its journey towards a landmark IPO.
