The Exicom Tele-Systems Limited IPO experienced robust demand on its first day of subscription. Qualified Institutional Buyers (QIBs) showed considerable interest, subscribing 0.73 times their allotted share. Non-institutional investors displayed even stronger enthusiasm, with a subscription rate of 19.03 times their segment. Retail Individual Investors (RIIs) led the demand, registering an impressive 27.11 times subscription of their quota. Collectively, the IPO achieved a total subscription of 10.01 times, reflecting a strong market interest.
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 on the rise, evident from a steady increase in net profit and EPS. 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.
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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.
