Exicom Tele-Systems IPO to Close Today; Oversubscribed 39 Times

29 Feb 2024 , 12:16 PM

Exicom Tele-Systems IPO is set to close today and has witnessed an overwhelming response, with a subscription rate of 38.86 times so far. On February 28th, the second day of bidding, the ₹429-crore public issue saw a subscription of 16.03 times, with a total of 29.22 crore bids received against an issue size of 1.82 crore shares. Click here to subscribe the IPO.

As of 12.12 PM on day 3 of bidding, the retail portion has been subscribed an impressive 81.99 times, while the non-institutional investor (NII) segment has been booked 85.95 times, and the qualified institutional buyer (QIB) segment has been booked 5.28 times.

The IPO comprises fresh shares worth ₹329 crore and an offer-for-sale (OFS) of 70.42 lakh shares amounting to ₹100 crore at the upper price band, offered by promoter NextWave Communication.

Exicom Tele-Systems intends to utilize ₹145.77 crore to establish assembly lines at a facility in Telangana. Additionally, ₹69 crore will be allocated for working capital requirements, while ₹40 crore will be invested in research and development (R&D) and product development initiatives.

A portion of the funds, totaling ₹50.3 crore, will be utilized for debt repayment, with the remaining amount earmarked for general corporate purposes.

The company operates as a power management solutions provider with two primary business verticals. Its EV chargers business offers smart charging systems catering to residential, business, and public charging applications. The second vertical focuses on critical power solutions, encompassing the design, manufacture, and servicing of critical digital infrastructure technology.