Exicom Tele-Systems IPO Day 2: Check latest GMP, subscription status, other details; should you subscribe?

The Exicom Tele-Systems IPO opened for subscription on Tuesday, February 27, and will close on Thursday, February 29. Exicom Tele-Systems IPO subscription status today is 27.78 times, as per BSE data. The Exicom Tele-Systems IPO was subscribed to 10.02 times on day 1. The issue was fully booked within an hour of opening on the first day, led by overwhelming demand from retail investors.

Exicom Tele-Systems IPO price band has been fixed in the range of ₹135 to ₹142 per equity share of face value of ₹10. Exicom Tele-Systems IPO lot size is 100 equity shares and in multiples of 100 equity shares thereafter.

Exicom Tele-Systems IPO, raised ₹178 crore from the anchor investors on Monday, February 26. A total of 79,61,300 equity shares were allocated to 5 domestic mutual funds via 9 schemes, out of the 1,25,38,800 equity shares that were allotted to the anchor investors.

Exicom Tele-Systems IPO, has reserved not less than 75% of the shares in the public issue for qualified institutional buyers (QIB), not more than 15% for non-institutional Institutional Investors (NII), and not more than 10% of the offer is reserved for retail investors.

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Electric vehicle (EV) charging, power systems, and associated solutions are the areas of expertise for Exicom Tele-Systems Limited. The business is divided into two verticals. The firm is among the first to join the Indian EV charger manufacturing market as of March 31, 2023.

As per the company's red herring prospectus (RHP), the company listed peers are Servotech Power Systems Ltd ( with a P/E of 155.96) and HBL Power Systems Ltd (with a P/E of 139.30).

Between March 31, 2022, and March 31, 2023, Exicom Tele-Systems Limited's profit after tax (PAT) increased by 24.07% while its revenue declined by 14.79%.

Exicom Tele-Systems IPO subscription status today 

On day 2 Exicom Tele-Systems IPO's retail portion was subscribed 64.79 times, the NII portion was booked 54.39 times, and Qualified Institutional Buyers (QIBs) portion is booked 4.48 times, as per BSE data.

Exicom Tele-Systems IPO has received bids for 50,62,37,400 shares against 1,82,23,540 shares on offer, according to data from the BSE.

Also Read: Exicom Tele Systems IPO day 1: GMP, review, subscription status, other details. Buy or not?

Exicom Tele-Systems IPO details 

The ₹429 crore worth Exicom Tele-Systems IPO comprises a fresh issue of equity shares totaling up to ₹329 crore and an Offer For Sale (OFS) component of up to 70.42 lakh equity shares by promoter NextWave Communications.

NextWave Communications holds a majority stake of 76.55% in the company, while HFCL has a 7.74% stake in the firm. The promoters collectively hold 93.28% stake in Exicom Tele-Systems.

The company proposes to utilise the funds raised from the fresh issue towards setting up production lines at the manufacturing facility in Telangana, investment in R&D as well as product development, and payment of debt, to support working capital requirements and for general corporate purposes.

Monarch Networth Capital Limited, Unistone Capital Private Limited, and Systematix Corporate Services Limited are the BRLM to the issue, and the Link Intime India Private Limited is the registrar to the offer.

Also Read: Exicom Tele Systems IPO subscribed 10.02 times on day 1, retail portion booked over 27 times; check GMP, other details

Exicom Tele-Systems IPO GMP today

Exicom Tele-Systems IPO GMP or grey market premium is +180. This indicates Exicom Tele-Systems share price was trading at a premium of ₹180 in the grey market, as per investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the Exicom Tele-Systems IPO expected listing price is indicated at ₹322 apiece, which is 126.76% higher than the IPO price of ₹142.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Exicom Tele-Systems IPO Review 

SBICAP Securities Ltd

The brokerage states that the company is priced at the upper price range on post-issue capital at an annualised P/E multiple of 31.2x for FY24. To boost its top line, the business is growing its EV charger, DC Power Systems, and lithium-ion battery assembly manufacturing facilities in Telangana. The company intends to increase profitability by lowering its debt from the recent offering.

“The growth forthe EV industry looks very attractive going ahead in India, as well the need of telecommunication infrastructure for 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,” the brokerage said. 

Nirmal Bang Securities Private Ltd 

The brokerage believes that Exicom, which has a 16% and 10% market share, is well-positioned to benefit from its reputation as a dependable supplier of Li-ion batteries and DC Power Systems to telecom businesses. The EV charger sector is expected to rise from ₹1,300 crore in FY24E to ₹9,000 crore by FY28E, giving Exicom a significant tailwind. The EV charger business benefits from these structural tailwinds.

“Although there is no direct comparable peer for Exicom, HBL & Servotech have overlapping businesses. We observe that Exicom has delivered growth and return ratios which are similar to listed peers while its valuation is at a significant discount. Based on strong industry tailwinds in the EV industry and its dominant market share, we are positive on Exicom’s listing prospects and thus we recommend to Subscribe to the IPO,” the brokerage said. 

Also Read: Exicom Tele-Systems IPO: Planning to invest? 10 key risks you should know before subscribing to the issue

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.