Exicom Tele-Systems IPO sees bumper debut, lists at 87% premium

Exicom Tele-Systems initial public offer (IPO) witnessed a solid debut on the bourses on March 5, listing at Rs 265, commanding a premium of 87 percent over the issue price of Rs 142 per share.

The Gurugram-headquartered EV charger manufacturer aimed to raise Rs 429 crore through its maiden public issue which comprises a fresh issue of Rs 329 crore worth of shares by the company and an offer-for-sale (OFS) of 70.42 lakh shares worth Rs 100 crore at the upper price band. Promoter NextWave Communication will be selling shares in the OFS.

The issue received a healthy 129.54x subscription on February 29, the final day of bidding. High net worth individuals were at the forefront, subscribing 153.22 times, retail investors picked 119.58 times, while qualified institutional buyers bid 121.80 times the allotted quota.

The company operates as a power management solutions provider, with a focus on two key business verticals. In the EV chargers business, it provides smart charging systems for residential, business, and public charging applications in India. In the critical power solutions business, Exicom specializes in the design, manufacturing, and servicing of critical digital infrastructure technology.

Of the fresh proceeds, Exicom plans to allocate Rs 145.77 crore for establishing production/assembly lines at a manufacturing facility in Telangana. Additionally, Rs 69 crore will be earmarked for meeting working capital requirements, while Rs 40 crore will be allocated for investment in research and development (R&D) and product development. A portion of the funds, amounting to Rs 50.3 crore, is earmarked for repaying debts, and the remaining balance will be reserved for general corporate purposes.

The company was among the first entrants in the EV chargers manufacturing segment. As of March 31, 2023, it had a market share of 60 percent and 25 percent in the residential and public charging segments and further, it has deployed over 35,000 EV chargers across 400 locations in India.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.