Maiden IPO of Exicom Tele Systems debuts at 86.6 percent premium, experts expect doubling of its issue price of INR 142 apiece.
Mar 19, 2024
Power management solutions provider Exicom Tele Systems recently launched its maiden initial public offering (IPO), comprising a fresh issue of INR 329 crore worth shares by the company and an offer-for-sale (OFS) of 70.42 lakh shares worth INR 100 crore at the upper price band.
The Gurugram-headquartered EV charger manufacturer aimed to raise Rs 429 crore through its maiden IPO.
As per market sources, the Exicom IPO, which was listed on both the National Stock Exchange and the Bombay Stock Exchange, debuted at 86.6 percent premium.
The share received a strong response from the primary market investors. In the secondary market also, the mood has been positive as the company’s FY24 earnings forecast indicates ample growth potential and hope for long-term expansion plans as well.
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As per experts, Exicom Tele Systems IPO listing price could be in the range of INR 282 to INR 299 per share range.
Another expert said that Exicom Tele-Systems commanded a 60 percent market share in EV charging. The company faced a setback in FY23 while divesting its battery business, however, its FY24 earnings forecast indicated ample growth potential backed by long-term expansion plans.
A research analyst said that as per the EV structural growth and Exicom’s dominant position to serve the growth, it was expecting a robust listing with a high possibility of doubling from its issue price of INR 142 apiece.
As per sources, the issue received a healthy 129.54x subscription on February 29, the final day of bidding. High net worth individuals subscribed 153.22 times, while retail investors picked 119.58 times, and qualified institutional buyers bid 121.80 times the allotted quota.
The 30-year-old company offers smart, sustainable and connected solutions in critical power and EV charging. It is actively involved in advancing the transformation to sustainable energy in mobility and telecommunications through its state-of-the-art technology in EV chargers, battery systems and industrial power systems.
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With a presence in 15 countries, Exicom is rapidly expanding, providing innovative solutions across borders. The company specializes in making future-proof, simple and reliable EV chargers. In the critical power domain, its products ensure seamless operations for telecom companies worldwide 24×7, while helping them reduce their carbon footprint.
Of the fresh proceeds, Exicom plans to allocate INR 145.77 crore for establishing production/assembly lines at a manufacturing facility in Telangana. It will earmark INR 69 crore for meeting working capital requirements, while INR 40 crore will be allocated for investment in research and development (R&D) and product development.
INR 50.3 crore will be earmarked for repaying debts, while the remaining balance will be reserved for general corporate purposes.
