Of the six initial public offerings (IPOs) scheduled to hit Dalal Street this week, two opened for subscription on Tuesday. While the Exicom Tele-Systems IPO aims to raise net proceeds worth ₹429 crore and will close on February 29, the public offer of Platinum Industries is to raise ₹235 crore; the latter too will close on February 29.
Exicom Tele-Systems IPO
The company, which is into electric vehicle (EV) chargers making, has fixed a price band of ₹135-142 per share. The IPO comprises a fresh issue of equity shares aggregating up to ₹329 crore, along with an offer-for-sale (OFS) of up to 70.42 lakh shares worth ₹100 crore at the upper end of the price band.
According to market experts, Exicom Tele-Systems’ shares are available at a premium of ₹129 in the grey market today.
Meanwhile, Dhruv Mudaraddi, a research analyst at brokerage firm Stoxbox, gave a ‘subscribe’ tag to the offer.
“With clear objectives post-IPO encompassing the establishment of production facilities, debt repayment, investment in R&D, and bolstering working capital, the company demonstrates a proactive approach toward addressing market demands and capitalizing growth opportunities,” Mudaraddi told Mint.
Other leading brokerages such as BP Equities, Nirmal Bang, and SBI Securities, have also assigned a ‘subscribe’ tag to the public issue.
Platinum Industries IPO
The firm, which manufactures PVC (ployvinyl chloride) and CPVC (chlorinated polyvinyl chloride), has fixed the price band at ₹162-171 per share. The IPO is a entirely a fresh equity issue of 1.37 crore shares with no OFS component.
Analysts at financial services provider Anand Rathi, gave a ‘subscribe’ tag to investors in the long-term.
At the upper price band company is valuing at P/E (price-earnings) of 25.0 times, with a market cap of ₹939 crore post issue of equity shares and return on net worth of 61.26%. We believe that valuations of the company is fairly priced and recommend a ‘Subscribe-Long Term’ rating to the IPO,” it said in its IPO note.
(Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies)