Exicom Tele-Systems likely to showcase a robust debut on the bourses

On the financial side, Exicom Tele-Systems witnessed a 16 percent decline in revenue from operations, totalling Rs 707.93 crore in the fiscal year 2022-2023.

Exicom Tele-Systems, involved in the business of charging infrastructures, is expected to have a bumper debut on the bourses on March 5 as per trends indicated in the grey market premium (GMP). The counter commands a Rs 145 premium, higher by 102 percent to the issue price, suggesting the listing price to be around Rs 287.

The expectations of a listing boom are aligned with the kind of response received by the company's initial public offer. The company's IPO was subscribed nearly 130 times, with non-institutional investors leading from the front as they bid 152.22 times their allotted quota. Retail investors bought 119.59 times while qualified institutional buyers (QIBs) bid 121.80 times the reserved portion.

Read: Exicom Tele-Systems IPO: Issue subscribed 129.54 times, retail portion booked 120x on Day 3

"A first mover in EV charging infra and power management solution provider, the company has a 60 percent market share in the EV charging segment and is poised for bright prospects ahead with a shift from conventional fuel to EV vehicles globally", Amit Goel, chief global strategist at Pace 360 said.

Read more: Exicom Tele-Systems IPO: 10 things to know before subscribing to the Rs 429-cr issue

Exicom Tele-Systems operates as a power management solutions provider with two primary business verticals. Firstly, in the EV chargers business, the company offers smart charging systems for residential, business, and public charging applications in India. Secondly, the company specialises in designing, manufacturing, and servicing critical digital infrastructure technology.

Prashanth Tapse, senior vice president of Mehta Equities said that "Looking at the EV structural growth and Exicom’s dominant position to serve the growth, we expect a robust listing with a high possibility of doubling from its issue price of Rs 142. Despite being fully priced in the valuation offer, we believe the premium listing is justified on the back of early entry into EV charger solution manufacturing and strategic partnerships with automotive OEMs and charging station operators solidified Exicom's market leadership position".

Dhruv Mudaraddi, analyst at StoxBox is of the view that the company is well-positioned as a significant player within global telecommunications. Additionally, it has the potential to capitalise on the evolving landscape driven by smartphone adoption, 5G deployment, and the proliferation of Internet of Things (IoT) devices. "With clear objectives post-IPO encompassing the establishment of production facilities, debt repayment, investment in R&D, and bolstering working capital, Exicom demonstrates a proactive approach toward addressing market demands and capitalizing growth opportunities", Mudaraddi added.

The EV charger manufacturer aims to garner Rs 429 crore through its maiden public issue. The issue is a combination of 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.

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