Exicom Tele-Systems IPO Soars with 87% Premium Debut

Bumper Listing for Exicom Tele-Systems IPO

Exicom Tele-Systems, a Gurugram headquartered power management solutions provider witnessed a remarkable debut on the stock exchanges today. The company specializing in EV chargers and critical power solutions opened at ₹265 per share on NSE and ₹264 on BSE marking gains of 86.62% and 85.92% respectively from its issue price of ₹142. The excitement didn't last long as investors started selling soon after its bumper debut on Dalal Street. Despite experts anticipation of the Exicom Tele-Systems IPO share price listing within the range of ₹282 to ₹299, Exicom's shares faced a swift decline touching an intraday low of ₹233.10 on NSE. The rapid drop in price indicated selling pressure with high trade volume further reinforcing this sentiment.

Exicom Tele-Systems IPO Subscription and IPO Details

Exicom Tele-Systems IPO received overwhelming demand from investors across all categories being heavily oversubscribed. It was subscribed 129.54 times overall on the last day with the retail category subscribing 119.59 times, Non-Institutional Investors (NII) category subscribing 153.22 times and the Qualified Institutional Buyers portion being oversubscribed 121.80 times. The IPO aimed to raise ₹429 crore consisting of a fresh issue of ₹329 crore and an offer for sale of ₹100 crore by promoter NextWave Communication.

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The company focuses on two main areas electric vehicle chargers and critical power solutions. In the EV chargers business, it offers smart charging systems for homes, businesses and public spaces in India. Exicom specializes in creating, producing and maintaining digital infrastructure technology for critical power solutions.

Exicom plans to utilize the fresh proceeds from its IPO in several ways. A portion amounting to ₹145.77 crore will be allocated towards establishing production/assembly lines at a manufacturing facility in Telangana. Another ₹69 crore will be set aside to meet working capital requirements while ₹40 crore will be earmarked for investment in research and development and product development. Additionally, ₹50.3 crore will be used for repaying debts with the remaining balance reserved for general corporate purposes.

As of 31 March 2023, the company held a dominant market share of 60% and 25% in the residential and public charging segments respectively having deployed over 35,000 EV chargers across 400 locations in India. Exicom Tele-Systems impressive debut reflects investor confidence in its business model and growth prospects. However, the subsequent profit booking suggests short term volatility in the stock price. Investors will be closely monitoring the company's performance in the coming days amidst evolving market dynamics and competitive pressures.

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To Summarize

Exicom Tele-Systems IPO had a strong start showing investors interest and oversubscription reflecting confidence in the company's future. Though the share price initially rose, profit taking tempered excitement revealing market volatility. However, Exicom's solid foundation and strategic plans set it up for long term success making it an attractive opportunity in the power management sector.