Exicom Tele-Systems makes robust debut; lists 86% higher over issue price

Exicom Tele-Systems (Exicom) made a healthy stock market debut with its shares listing 85 per cent higher at Rs 270.30 against its issue price of Rs 142 per share on the BSE on Tuesday. The stock was listed at Rs 270 on the National Stock Exchange (NSE).

Post listing, the stock moved higher to Rs 274.30, a premium of 93 per cent over the issue price. At 10:02 am, it was quoting at Rs 271.50 on the BSE. In comparison, the S&P BSE Sensex was down 0.39 per cent at 73,586.

Exicom’s IPO was subscribed 133.56 times, with non-institutional investors (NII) leading from the front as they bid 159.29 times their allotted quota.

Retail investors bought 124.27 times while qualified institutional buyers (QIBs) bid 124.82 times the reserved portion, data shows.

Exicom operates in two key business areas of critical power (70 per cent of revenue) wherein it supplies DC Power Systems (16 per cent market share) and Li-ion based energy storage solutions (10 per cent market share) to telecom companies.

Its second vertical is electric vehicle (EV) chargers (30 per cent of revenue) where it commands a market share of 60 per cent and 25 per cent in the residential and public charging segments, respectively.

"Although telecom is a mature industry, the government’s thrust on setting up telecom infra in rural and border areas could provide growth in the Critical Power Business. The EV charging business benefits from structural tailwinds in the EV charging industry, which is estimated to grow from Rs 1,300 crore seen in FY24 to Rs 9,000 crore by FY28 thereby providing a huge tailwind for Exicom", according to Nirmal Bang Securities.

Exicom is expanding its manufacturing facility for EV chargers, DC Power Systems and Lithium-ion Battery Assembly in Telangana which will add to the topline.

"The company also plans to reduce its debt from the fresh issue, which will improve the profitability.
The growth for the EV industry looks very attractive going ahead in India, as well the need of telecom infra for 5G network will give an edge to the company’s growth in future," said SBI Securities in its IPO note.