Exicom Tele Systems IPO: Subscribed 40 Times On Day 3, GMP Hints Bumper Listing; Check Allotment Status

Gurugram-based Exicom Tele Systems Limited's Initial Public Offering (IPO) has garnered overwhelming investor interest, recording a subscription of 27.78 times in just two days. The grey market remains bullish, with the IPO Grey Market Premium (GMP) soaring to Rs 179, reflecting a 126% increase over the IPO price range of Rs 135 to Rs 142 per equity share.

After the first two days of bidding, Exicom Tele Systems IPO witnessed robust demand across all categories. The retail portion was oversubscribed 64.79 times, signalling strong interest from individual investors. The Non-Institutional Investors (NII) portion recorded a subscription of 54.39 times, while the Qualified Institutional Buyers (QIB) portion saw a subscription of 4.48 times.

Despite a sharp sell-off in the secondary market on Wednesday, Exicom Tele Systems IPO GMP today stands at Rs 179, marking a Rs 9 increase from Wednesday's GMP of Rs 170. Analysts attribute this surge to the overwhelming response from investors during the bidding period, suggesting positive market sentiment.

The IPO comprises fresh shares worth Rs 329 crore and an Offer-for-Sale (OFS) of 70.42 lakh shares amounting to Rs 100 crore from promoter NextWave Communication. Before the IPO launch, the company secured Rs 178 crore from anchor investors, including 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 Company.

Exicom Tele Systems plans to utilize the funds strategically. A significant portion, Rs 145.77 crore, is earmarked for setting up assembly lines at a facility in Telangana. Additionally, Rs 69 crore will be allocated for working capital requirements, Rs 40 crore for research and development (R&D), and product development. A portion of the funds, Rs 50.3 crore, will be used for debt repayment, with the remaining amount allocated for general corporate purposes.

Exicom Tele-Systems operates as a power management solutions provider with two primary business verticals. In the EV chargers business, the company offers smart charging systems catering to residential, business, and public charging applications. The critical power solutions business focuses on designing, manufacturing, and servicing critical digital infrastructure technology.

As the IPO heads into its final day, the total subscription stood at an impressive 39.56 times at 12:15 pm. Retail investors led the way, subscribing 82.31 times their allotted quota, showcasing strong retail participation. Non-institutional investors also demonstrated robust interest, subscribing 86.74 times their allocated portion. Qualified Institutional Buyers (QIBs) participated actively, subscribing 5.31 times their quota.

In this IPO, approximately 75% of the shares are reserved for Qualified Institutional Buyers, 15% for Non-Institutional Investors, and the remaining 10% for Retail Investors.

Exicom Tele Systems Limited's IPO has emerged as a major success, driven by robust investor demand and a positive response in the grey market. The company's strategic allocation of funds towards expansion, research, and debt repayment has garnered confidence from both institutional and retail investors.