Exicom Tele-Systems made a remarkable debut on the stock exchanges on March 5th, opening at Rs 265, marking an impressive premium of 87 percent over the issue price of Rs 142 per share.
The Gurugram-based EV charger manufacturer aimed to raise Rs 429 crore through its initial public offering (IPO), comprising 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. Promoter NextWave Communication will be divesting shares in the OFS.
The IPO garnered substantial interest, with a robust subscription of 129.54 times on February 29th, the final day of bidding. High net worth individuals led the subscriptions, with a 153.22 times oversubscription, followed by retail investors at 119.58 times, and qualified institutional buyers at 121.80 times the allotted quota.
Exicom operates as a power management solutions provider, focusing on two primary business verticals. In the EV chargers business, it offers smart charging systems for residential, business, and public charging applications in India. In the critical power solutions business, Exicom specializes in designing, manufacturing, and servicing critical digital infrastructure technology. Of the fresh proceeds from the IPO, Exicom plans to allocate Rs 145.77 crore for establishing production/assembly lines at a manufacturing facility in Telangana. Additionally, Rs 69 crore will be allocated for meeting working capital requirements, while Rs 40 crore will be invested in research and development (R&D) and product development. A portion of the funds, amounting to Rs 50.3 crore, will be utilized for debt repayment, with the remaining balance earmarked for general corporate purposes.
Exicom was one of the pioneering players in the EV chargers manufacturing segment, boasting a market share of 60 percent and 25 percent in the residential and public charging segments respectively as of March 31, 2023. Moreover, the company has deployed over 35,000 EV chargers across 400 locations in India.
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