Exicom Tele-Systems IPO: Oversubscribed 13.15 Times, Closing Tomorrow

The Exicom Tele-Systems IPO has captured significant investor interest since its opening on February 27, with subscriptions surging to 13.15 times the offer size as of February 29, as per BSE data.

This IPO, scheduled to close on February 29, has witnessed robust demand, particularly from retail investors, with the issue fully subscribed within an hour of opening on day one.

IPO Details and Structure

With a price band set between Rs. 135 and Rs. 142 per equity share and a lot size of 100 equity shares, the Exicom Tele-Systems IPO offers investors an opportunity to participate in the burgeoning electric vehicle (EV) charging, power systems, and associated solutions market.

Notably, the IPO raised Rs. 178 crore from anchor investors, comprising a mix of domestic mutual funds and other institutional investors. The allocation for qualified institutional buyers (QIBs), non-institutional investors (NIIs), and retail investors stands at 75%, 15%, and 10%, respectively.

Business Operations and Expertise

Exicom Tele-Systems Limited specializes in electric vehicle (EV) charging infrastructure, power systems, and associated solutions. As one of the early entrants in the Indian EV charger manufacturing market, the company operates across two verticals, catering to the growing demand for sustainable mobility solutions. Its expertise positions it favorably in a market poised for exponential growth.

Financial Performance and Market Positioning

Despite a decline of 14.79% in revenue from March 31, 2022, to March 31, 2023, Exicom Tele-Systems Limited witnessed a 24.07% increase in profit after tax (PAT) during the same period. Comparisons with listed peers like Servotech Power Systems Ltd and HBL Power Systems Ltd offer insights into the company's valuation and market positioning.

Subscription Status and Market Perception

The subscription status of the Exicom Tele-Systems IPO reflects overwhelming demand, with the retail portion oversubscribed by 36.29 times and the NII portion by 25.04 times on day two. The grey market premium (GMP) of 180 indicates investors' willingness to pay a premium over the issue price, reflecting positive market sentiment and expectations.

Promoter Holding and Utilization of Funds

NextWave Communications holds a majority stake of 76.55% in Exicom Tele-Systems, while HFCL maintains a 7.74% stake. The promoters collectively hold a substantial 93.28% stake in the company.

Proceeds from the IPO will primarily be allocated towards setting up production lines, investment in research and development (R&D), debt repayment, and bolstering working capital.

Lead Managers and Key Entities

Monarch Networth Capital Limited, Unistone Capital Private Limited, and Systematix Corporate Services Limited serve as the book-running lead managers (BRLM) for the issue, overseeing its execution and market positioning. Link Intime India Private Limited acts as the registrar of the offer, facilitating the process of share allotment and investor communication.

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