Exicom Tele-Systems had a remarkable debut on the stock market today. Its shares opened at Rs 265 on the National Stock Exchange (NSE) and Rs 264 on the Bombay Stock Exchange (BSE), much higher than the issue price of Rs 142, marking an 87 per cent and 86 per cent premium, respectively.

The company’s IPO saw strong demand from investors, with it being oversubscribed 129.54 times. Retail investors subscribed 119.59 times, while non-institutional investors subscribed 153.22 times, and qualified institutional buyers subscribed 121.80 times.

Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, said, “Exicom Tele-Systems, the leading player in the Indian electric vehicle (EV) charger market, made a strong debut on the stock exchanges, listing at Rs. 265 per share. This translates to an impressive 86.6 per cent premium over its issue price of Rs. 142. While this performance is undoubtedly positive, it falls short of pre-listing expectations that targeted an even higher gain, likely due to the negative market sentiment on the listing day.”

“Despite broader market weakness, the 86.6 per cent premium signifies investor confidence in Exicom Tele-Systems’ future potential. The company’s established position in the EV charger market positions it for continued growth alongside the booming EV industry,” she added.

She said the listing of Exicom Tele-Systems may not have fully met the high expectations set before its debut, but it still presented a robust performance, highlighting the company’s promising future.

“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, Nyati said.

Exicom Tele-Systems IPO details

The IPO, worth Rs 429 crore, consisted of a fresh issue of equity shares amounting to Rs 329 crore and an Offer For Sale (OFS) component of up to 70.42 lakh equity shares by promoter NextWave Communications.

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

The funds raised from the IPO will be used for setting up production lines, investment in research and development, product development, debt payment, working capital, and general corporate purposes.

Monarch Networth Capital Limited, Unistone Capital Private Limited, and Systematix Corporate Services Limited are the book running lead managers (BRLM) to the issue, and Link Intime India Private Limited is the registrar to the offer.

Published By:

Koustav Das

Published On:

Mar 5, 2024

Source link