The initial public offering of Exicom Tele-Systems Ltd wassubscribed over 10 times by retail investors and non-institutions (HNIs) on Day 1 of the issue opening on Tuesday. The IPO has a price range of ₹135-142 a share.

The ₹429-crore IPO received bids for 18,23,99,200 shares, as against 1,82,23,540 shares (net off anchor portion) on offer, translating into 10.01 times subscription, according to NSE data.

The company has reserved not less than 75 per cent of the issue for qualified institutional buyers (QIBs), not more than 10 per cent for retail investors, and not more than 15 per cent for non-institutional investors (NII).

The quota for retail investors was subscribed 27.11 times, that for HNIs 19.03 times, and the portion for qualified institutional buyers was subscribed 73 per cent.

The IPO was fully subscribed within hours of the bidding process beginning.

The IPO has a fresh issue of equity shares aggregating up to ₹329 crore and an offer-for-sale (OFS) component of up to 70.42 lakh equity shares worth ₹100 crore by promoter NextWave Communications. NextWave Communications holds a 76.55 per cent stake in the company, and HFCL, part of the promoter group, owns a 7.74 per cent shareholding.

Exicom Tele-Systems Ltd has garnered ₹178 crore from anchor investors.

Proceeds of the fresh issue will be used towards setting up production lines at the manufacturing facility in Telangana, investment in R&D as well as product development, and payment of debt to support working capital requirements and for general corporate purposes.

Exicom Tele-Systems is a power management solutions provider and operates under two business verticals -- EV (Electrical Vehicle) charger solutions business and power solutions business.

In the EV charger business, the company provides smart charging systems with innovative technology for residential, business, and public charging use in India, and in the other vertical, it designs, manufactures, and services DC Power Systems 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 managers to the offer.

Related Topics
comment COMMENT NOW