The initial public offer (IPO) of Exicom Tele Systems was subscribed 38.43 times so far on Thursday, the final day of the bidding process. The issue received over 70 crore consolidated share bids around noon as against the 1.82 crore shares available for subscription. The retail portion was also oversubscribed at 80.81 times. The portion for non-institutional investors was booked 84.66 times while the qualified institutional buyers (QIB) quota was booked 4.58 times.

About Exicom Tele Systems IPO

The IPO is a combination of a fresh equity issue worth Rs 329 crore and an offer for sale of 70.42 lakh shares. Ahead of the issue opening, the company mopped up about Rs 178 crore from anchor investors.

Exicom Tele Systems IPO price band

Exicom Tele Systems has fixed a price band of Rs 135-142 for its public offer and investors can make bids for 100 shares in one lot and in multiples thereafter.

Exicom Tele Systems IPO review

Analysts said that the company’s longstanding relationships with global customers, experienced management team, new manufacturing facility to drive higher asset turnover, higher entry barriers, and improved financials are the key advantages.

Exicom Tele Systems IPO GMP

The shares of Exicom Tele Systems were commanding a premium (GMP) of Rs 165 in the unlisted market which is down from Rs 180 on Wednesday.

Exicom Tele Systems IPO timeline

The issue will close on Friday and the allotment of shares to investors will be finalised on March 1, Friday. The initiation of refund and transfer of shares to the demat accounts is expected to happen on March 4, Monday while the listing of the stock is expected on March 5, Tuesday.

Exicom Tele Systems IPO proceeds

Net proceeds from the IPO are proposed to be used for setting up of production lines at the planned manufacturing facility in Telangana, repayment of debt, investment in research and development and general corporate purposes.

Exicom is also expanding the product portfolio for existing and new customers capitalizing on EV charging industry tailwinds which is expected to grow 40-60% CAGR over the next few years.

“The growth for the EV industry looks very attractive going ahead in India, as well the need of telecommunication infrastructure for the 5G network will give an edge to the company’s growth in future. We recommend investors to Subscribe to the issue for the long-term investment horizon,” said SBI Securities.

The company is valued at FY24 annualized P/E multiple of 31.2x at the upper price band on post-issue capital.

“Positioned within the future-oriented segments of green energy and green mobility, the company is poised to benefit from heightened demand and market dynamics,” said BP Equities, while recommending to subscribe the issue.

About Exicom Tele Systems

Exicom Tele Systems is a power management solutions provider, operating under two business verticals. Under the critical power solutions business, it designs, manufactures and services DC Power Systems and Li-ion based energy storage solutions to deliver overall energy management at telecommunications sites and enterprise environments.

The electric vehicle supply equipment (EV Chargers) solutions business provides smart charging systems with innovative technology for residential, business, and public charging use in India.

In the first half of FY24, revenue from operations more than doubled to Rs 455 crore and net profit of Rs 27.4 crore as against a loss a year ago.

Exicom Tele Systems lead managers
Monarch Networth Capital, Unistone and Systematix Corporate are acting as the book running lead managers to the issue.

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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)


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