Exicom Tele-Systems IPO: Should you subscribe to this Rs 429-crore offer?
issue will be available for the public to bid till February 29.
The IPO is a combination of a fresh equity issue worth Rs 329 crore and an offer for sale of 70.42 lakh shares. Ahead of the issue opening, the company mopped up about Rs 178 crore from anchor investors.
Net proceeds from the IPO are proposed to be used for setting up of production lines at the planned manufacturing facility in Telangana, repayment of debt, investment in research and development and general corporate purposes.
Exicom Tele-Systems IPO review
Analysts said the company's longstanding relationships with global customers, experienced management team, new manufacturing facility to drive higher asset turnover, higher entry barriers, and improved financials are the key advantages.
Exicom is also expanding the product portfolio for existing and new customers capitalizing on EV charging industry tailwinds which is expected to grow 40-60% CAGR over the next few years.
«The growth for the EV industry looks very attractive going ahead in India, as well the need of telecommunication infrastructure for the 5G network will give an edge to the company’s growth in future. We recommend investors to Subscribe to the issue for the long-term investment horizon,» said SBI Securities.
The company is valued at FY24 annualized P/E multiple of 31.2x at the upper price band on post-issue capital.
«Positioned within the future-oriented segments of green energy and green mobility, the company is poised to benefit from heightened demand and market dynamics,»
