Exicom Telesystem is coming with an IPO.
Exicom Tele-Systems Limited specializes in power systems, electric vehicle (EV) charging, and other related solutions. The company operates under two business verticals.
Power Systems: Exicom provides uninterrupted power solutions for digital communication networks.
EV Charging Solutions: Exicom has deployed over 6,000 AC and DC chargers in India and Southeast Asia. Their EV charging solutions are designed to withstand harsh environmental and electrical conditions.
However, the promoter group was involved in the 2G spectrum scam.
Quote,
“The latest to come under the scanner of the Central Bureau of Investigations (CBI), which is probing the alleged irregularities in allocation of 2G spectrum during former telecom minister Andimuthu Raja’s regime, are the Nahatas of telecom equipment manufacturer Himachal Futuristic Communications Ltd (HFCL).
According to sources in the know of information dug out by the investigative agency, the Nahatas had applied for 2G licence in 2008.
The Nahatas, who were allocated a pan-India licence to run GSM-based mobile telephone services, formed Datacom and sold 64% stake in it to the Dhoots of Videocon Group.
They finally exited the venture in 2010 by offloading their entire stake to the Dhoots at a premium after engaging in a bitter battle. According to a source, the Nahatas are said benefited by `400 crore from the licence. Attempts to reach HFCL chairman Mahendra Nahata were unsuccesful.
The source said Nahata was able to secure the 2G licence as he already had experience of operating in the telecom sector and knew how the “telecom ministry machinery worked.”
The source, however, could not give exact details of how the kickback money was routed to Raja and his associates.”
Detailed article on the scam is in the link below.
In short, the allotment of spectrum was done in a dubious way with speculation of kickback by the allottees. The allottees further sold the spectrum to other companies to gain profit. The price of allotment was also low based on old data.
The promoter group company HFCL was also involved in manipulation in the past.
A remark regarding SEBI action is documented in the DRHP but it seems to be related to a different case.
Quote from DRHP,
“Certain members of our Promoter Group have been subject to actions by regulatory authorities such as the Securities and Exchange Board of India (“SEBI”) and the Stock Exchanges Certain members of our Promoter Group, being Abhilash Growth Fund Private Limited, J.L. Growth Fund Limited, Nahar Growth Fund Private Limited, Vanaik Investors Limited and Kamal Oswal were in the past debarred from buying/selling/dealing/undertaking/participating in IPO in/of securities or specified scrips directly or indirectly, each from June 4, 2013, due to the inability of Abhilash Growth Fund Private Limited to adhere to the minimum public shareholding requirements prescribed under applicable laws. These debarment orders issued by SEBI were revoked on April 16, 2014 and as on the date of this Red Herring Prospectus, the said entities are not debarred. Furthermore, as on the date of this Red Herring Prospectus, our Company, the Promoters (including the Promoter Selling Shareholder), the members of our Promoter Group, and our Directors are not debarred from accessing the capital market by SEBI. Further, our Promoters are also promoters of a company forming part of our Promoter Group and identified as our Group Company, being HFCL Limited, which is listed on the Stock Exchanges and has in the past been subject to certain regulatory action including the levy of monetary penalties by the Stock Exchanges in relation to noncompliance with certain requirements of the SEBI Listing Regulations. “
I have observed that these types of companies give good returns in the short term, maybe due to operator activity. The business seems fine and in a fancy area of EV charging. People seem to have forgiven HFCL for any wrongdoing of the past. I would observe this one from sidelines.