Exicom Tele-Systems raises ₹71 crore via pre-IPO placement, allots 52.6 lakh shares to five investors

livemint.com:

₹71 crore through a pre-IPO placement before submitting the red-herring prospectus to the registrar of companies (ROC). The company said it has allotted 52,59,257 equity shares to five investors at a cost of ₹135 apiece in a public statement advertisement published in Financial Express (FE). Out of the five investors, Rare Enterprise (via Sunil Jugalkishor Anandpara and Hemal Dinesh Shah) was the largest buyer, purchasing 20 lakh shares valued at ₹27 crore.

Belgrave Investment Fund came in second, purchasing 18,51,851 equity shares valued at ₹25 crore. Monika Garware picked up 7.4 lakh shares worth ₹9.9 crore. Shaurya Vardhan Sonthalia and Rajyavardhan Sonthalia bought 333,333 shares each worth 4.5 crore.

According to news reports, Exicom Tele-Systems Ltd filed preliminary papers with capital markets regulator Securities and Exchange Board of India (SEBI) in September of last year in order to raise funds through an IPO. The company planned to consider raising ₹80 crore from the pre-IPO placement, which is a part of the fresh issue, according to the draft red herring prospectus (DRHP). “Our Company, in consultation with the book running lead manager (BRLMs), may consider a further issue of equity shares as may be permitted under applicable law to any person(s) of Equity shares for an amount aggregating up to ₹80 crore, at its discretion, prior to the filing of the Red Herring Prospectus with the RoC.

The pre-IPO placement shall not exceed 20% of the size of the fresh issue," the company said in its DRHP. According to DRHP, the IPO consists of fresh equity share offering valued at up to ₹400 crore and an offer for sale component of up to 74 lakh equity shares by the promoter, NextWave Communications. The DRHP states that