Breaking News: Exicom Tele-Systems IPO Oversubscribed! Retail Investors Rush In

On Tuesday, February 27, bids for the Rs 429 crore initial public offering (IPO) of Exicom Tele Systems will be accepted. The subscription period will run until Thursday, February 29. The fixed price range for the shares is between Rs 135 and Rs 142 per share. Investors may apply for an initial minimum of 100 equity shares, and after that in multiples of 100. High net worth individuals (HNIs) and regular investors swiftly purchased their allotted shares in the initial public offering (IPO), fully subscribed within hours of its debut on February 27.

Established in 1994, Exicom Tele-Systems specializes in power systems, electric vehicle (EV) charging, and associated solutions. Power systems and EV charging solutions are its two primary business segments. Remarkably, Exicom was among the pioneers in India's EV charger production industry.

Three times, the retail investor section was overbooked, and HNIs selected 1.17 times the number of shares that they were allocated.

Of the IPO, qualified institutional buyers will receive 75%, while non-institutional investors will receive the remaining 25% of the IPO will go to non-institutional investors, 10% will go to retail investors, and 75% will go to qualified institutional buyers.

A new issue of shares valued at Rs 329 crore and an offer for sale (OFS) of 70.42 lakh shares valued at Rs 100 crore at the higher price band are both included in the IPO. The OFS's promoter, NextWave Communication, is selling shares.

Status of Exicom Tele Systems' IPO subscription

Exicom Tele Systems' initial public offering (IPO) was subscribed 3.21 times on the first day of bidding, with 9.50 bookings for its retail component. The book construction issue's NII section received 6.08 subscriptions. With 76.55 percent, 4.64 percent, and 4.35 percent of the firm, respectively, NextWave Communications, Satellite Finance, and Vinsan Brothers are its three largest shareholders.

The remaining shares of the corporation are owned by public investors, such as Rare Enterprise, with HFCL holding a 7.74 percent stake. The business raised Rs 178 crore from anchor investors before the IPO. Participating in the investment round were notable investors such as Aditya Birla Sun Life Trustee, Maybank Asiapac Ex-Japan Equity I Fund, Nepean Long Term Opportunities Fund, Abakkus Diversified Alpha Fund, Quant Mutual Fund, JM Financial Mutual Fund, and SBI General Insurance Company.

The EV charger company Exicom Tele-Systems has received Rs 178 crore from anchor investors. To the participants in the anchor book, Maybank Asiapac Ex-Japan Equity I Fund, Nepean Long Term Opportunities Fund, Abakkus Diversified Alpha Fund, Quant Mutual Fund, JM Financial Mutual Fund, Aditya Birla Sun Life Trustee, and SBI General Insurance, the company allotted 1,25,38,800 equity shares for Rs 142 apiece. 

Exicom Tele provides fast charging solutions, such as DC chargers for businesses and public charging networks in cities and on highways, as well as slow charging options, like AC chargers designed for household use. EV bus and passenger car manufacturers with recognized track records, fleet aggregators, and charge station operators are among its clientele.

Exicom has installed more than 61,000 EV chargers across 400 locations in India as of September 30, 2023. Additionally, the company has deployed 470,810 Li-ion batteries for telecommunications purposes, which have a storage capacity exceeding 2.10 GWH. Furthermore, Exicom has supplied its EV chargers to over 70 customers. For the period ended September 30, 2023, Exicom Tele Systems reported a net profit of Rs 27.46 crore with revenue of Rs 467.21 crore. For the financial year that ended on March 31, 2023, its net profit was Rs 6.37 crore with revenue of Rs 723.40 crore.

Monarch Networth Capital, Unistone Capital, and Systematix Corporate Services are the book running lead managers of the Exicom Tele-Systems IPO. Link Intime India will serve as registrar for the issue.