On the second day of Exicom Tele-Systems Limited’s IPO, the subscription rates exhibited strong interest from various investor segments. Qualified Institutional Buyers (QIBs) participated actively with a subscription rate of 4.48 times. Non-institutional investors showed even greater enthusiasm, subscribing a remarkable 54.36 times. Retail Individual Investors (RIIs) led the charge with an impressive subscription of 64.73 times. Overall, the IPO received a robust total subscription of 27.76 times, reflecting a high level of confidence and demand from all types of investors in the market.
Exicom Tele-Systems Limited IPO – Fundamental Analysis:
Exicom Tele-Systems Limited has shown a strong financial trajectory, with its revenue climbing from ₹51,290.05 million in 2021 to ₹70,079.30 million in 2023, despite a temporary dip in 2022. Equity growth has been solid, increasing to ₹2,319.99 million in 2023. The company’s profitability is rising, evidenced by a steady net profit and EPS increase. RoNW improvement and higher NAV per share signal efficient equity use and intrinsic value growth, with a well-balanced asset and liability structure supporting this upward trend.
Exicom Tele-Systems Limited IPO – Risks And Challenges:
Exicom Tele-Systems Ltd faces significant challenges in the volatile EV market, including dependency on key customers and international raw material sourcing. The company’s profitability is closely tied to the unpredictable EV adoption rate, regulatory changes, and charger usage. Moreover, reliance on overseas suppliers from China, Singapore, Hong Kong, and South Korea for critical raw materials without fixed-price contracts exposes them to global market fluctuations, posing risks to their operational costs and overall financial stability.
