Despite a robust listing, the gains anticipated were a bit higher than what was the case due to the negative market sentiment on the listing day.
Analysts said the strong premium signifies investor confidence in Exicom Tele-Systems’ future potential. The company’s established position in the EV charger also promises its potential for continued growth alongside the booming EV industry.
“We suggest investors hold their position with a stop loss at 235 and monitor the stock’s performance closely. However, those who want to book listing gains may exit their position,” said Shivani Nyati, head of wealth at Swastika Investmart.
Net proceeds from the IPO are proposed to be used for setting up production lines at the planned manufacturing facility in Telangana, repayment of debt, investment in research and development and general corporate purposes.
Also Read: Exicom Tele Systems shares list at 87% premium over IPO priceExicom Tele Systems is a power management solutions provider, operating under two business verticals. Under the critical power solutions business, it designs, manufactures and services DC Power Systems and Li-ion based energy storage solutions to deliver overall energy management at telecommunications sites and enterprise environments.In this segment, the company occupies a share of 16% in the DC Power Systems market and 10% in the Li-ion based energy solutions.
The electric vehicle supply equipment (EV Chargers) solutions business provides smart charging systems with innovative technology for residential, business, and public charging use in India
The company is amongst the first entrants in the EV chargers manufacturing segment in India and as of March 2023, it had a market share of 60% and 25% in the residential and public charging segments, respectively.
For the six months ended September 2023, about 70% of the total revenue was derived from the critical power business and 29% from EV charger business.
In the first half of FY24, revenue from operations more than doubled to Rs 455 crore and a net profit of Rs 27.4 crore was reported as against a loss a year ago.
Monarch Networth Capital, Unistone and Systematix Corporate acted as the book-running lead managers to the issue.
