Exicom Tele Systems lists at 87% premium at Rs 265 per share

Exicom Tele-Systems Limited is engaged in power systems, electric vehicle (EV) charging, and other related solutions, debuted on the Indian stock market today.

The company’s stock opened at Rs 264 per share on the BSE, reflecting a substantial 85.92% premium over the final issue price of Rs 142 per share. The market capitalisation on the BSE is now Rs 3189.77 crore. Conversely, on the NSE, the stock debuted at Rs 265 per share with a premium of 86.62%.

IPO Proceeds

The company intends to use the net proceeds for several purposes, including part-financing the establishment of production/assembly lines at a planned manufacturing facility in Telangana. Additionally, funds will be allocated for the partial or full repayment of certain company borrowings, meeting incremental working capital needs, investing in research and development, and supporting general corporate purposes.

Company profile

Exicom Tele-Systems Limited is engaged in power systems, electric vehicle (EV) charging, and other related solutions. The company operates under two business verticals: Power Systems and EV Charging Solutions. Under Power Systems, Exicom provides uninterrupted power solutions for digital communication networks.

In the EV Charging Solutions segment, Exicom has deployed over 61,000 AC and DC chargers in India and Southeast Asia. Their EV charging solutions are designed to withstand harsh environmental and electrical conditions. As of September 30, 2023, the company has deployed 470,810 Li-ion batteries for application in the telecommunications sector, equivalent to a storage capacity of over 2.10 GWH. The company has installed more than 61,000 EV chargers across 400 locations in India.

Subscription details

On February 29, 2024, the final day of the IPO window, the IPO witnessed an impressive response, with a subscription rate of 133.56 times. The public issue received remarkable interest, with the retail category being subscribed 124.27 times, while the QIB and NII categories reached a subscription rate of 124.82 and 159.29 times respectively.

The IPO price band was between Rs 135 to Rs 142 per share, with a face value of Rs 10 per share and a lot size of 100 shares. The total size of the company’s IPO was Rs 429 crore, and the final share issue price was fixed at Rs 142 each.

Conclusion 

The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. Investors who applied for listing gains only have already earned 87% on the listing day itself and can choose to book the profit it has generated. On the other hand, investors with a higher risk appetite may opt to hold the shares for the medium to long term, which could be beneficial.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.