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Tuesday, February 28, 2006

XL Telecom plans Rs 60cr IPO

Secunderabad-based XL Telecom, an assembly partner of Kyocera Wireless Corp, is planning an initial public offering, IPO, of around Rs 60 crore in the next few months, reports Business Standard.

Anand Rathi Securities and Centrum Capital will be the lead managers for the issue. Kyocera Wireless is a global manufacturer of CDMA wireless phones.

Vasudeva Rao, Executive Director of XL Telecom, said, “We will be going for an IPO in May and will be filing the prospectus in March. We will be taking the book-building route and have finalised on Anand Rathi Securities and Centrum Capital as the lead managers.”

Funds are being raised for meeting the financial needs of the company’s expansion plans. XL Telecom plans to set up an assembly line based on surface mount technology, which is basically a manufacturing process where components are attached on the surface of the printed circuit board, instead of being fitted with wire leads into holes in the circuit board.

XL Telecom is also into manufacturing of solar panels, jointing kits and switch mode power supply units. The company is also looking at setting up an export-oriented manufacturing facility for solar panels. “The solar panels that we manufacture are of 100 watts capacity and meet the requirements of the domestic market. We will be manufacturing solar panels with 200 watts capacity for the European market,” Rao said.

At present, the company has an equity base of Rs 10.54 crore (Rs 105.4 million) with the holding of the promoters being 51%. Post issue, the equity base will increase to Rs 14.4 crore (Rs 144 million) and the promoters’ holding will come down to 38%.

Around 27% stake will be offloaded to the public and 5% of the public issue will be reserved for the employees.

XL Telecom ended last year with revenues of Rs 300 crore (Rs 3 billion) and will be closing this year (June 30, 2006) at Rs 450 crore (Rs 4.50 billion) revenues.

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