R ARIVANANTHAM
CHENNAI, FEB 22
EV chargers maker Exicom Tele-Systems Ltd on Thursday announced it has fixed a price band of Rs 135-142 per share for its Rs 429 crore Initial Public Offering (IPO).
The initial share sale will be open for public subscription during February 27-29 and the bidding for anchor investors will open for a day on February 26, the company said.
The maiden public issue comprises a fresh issue of equity shares aggregating up to Rs 329 crore and an Offer For Sale (OFS) component of up to 70.42 lakh equity shares worth Rs 100 crore, at the upper end of the price band, by promoter NextWave Communications.
At the upper end of the price band, the IPO is expected to fetch Rs 429 crore.
Investors can bid for a minimum of 100 equity shares and in multiples of 100 equity shares thereafter.
At present, NextWave Communications holds a 76.55 per cent stake in the company and HFCL, part of the promoter group, owns 7.74 per cent shareholding.
Through the issue, the promoters/promoter family will dilute 23 per cent of their shareholding. Pre-issue, the promoters own 92 per cent in the company which will come down to 69 per cent post-issue, Anant Nahata, Managing Director and Chief Executive Officer of Exicom, said.
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.
The company will use the net proceeds from the fresh issue to part-finance new assembly lines at the planned manufacturing facility in Telangana amounting to Rs 145.7 crore, Shiraz Khanna, the company’s chief financial officer, said.
Besides, the funds will be utilised for repayment of debt worth Rs 50.3 crore as well as incremental working capital requirements amounting to Rs 69 crore, among others, he added.
The company had reported a revenue of Rs 707 crore in FY23 from which it had earned a net income of Rs 31 crore. For the first half of this fiscal, its revenue and net income were Rs 455 crore and Rs 41 crore, respectively, Khanna said.
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.
The company was among the first entrants in the EV chargers manufacturing segment. As of March 31, 2023, it had a market share of 60 percent and 25 percent in the residential and public charging segments and further, it has deployed over 35,000 EV chargers across 400 locations in India.
The equity shares are proposed to be listed on the BSE and NSE.
Monarch Networth Capital, Systematix Corporate Services and Unistone Capital are the book-running lead managers to the issue.
