Exicom Tele Systems, a company in the electric vehicle (EV) charger market, witnessed a 4.5% drop in its share price during the opening trade on September 4th, 2024. This slump comes right after news broke that RARE Enterprises, an entity linked to the well-known investor Rakesh Jhunjhunwala, trimmed its stake in the company.
The data available on the stock exchanges reveals that RARE Enterprises sold 15.85 lakh shares, translating to a 1.3% stake in Exicom Tele Systems. This sale was executed at an average price of Rs 348.60 per share, amounting to a total of Rs 55.25 crore.
It's important to remember that Exicom Tele had a remarkable debut in the stock market back in March this year. The company witnessed a listing with a premium exceeding 80%. However, the recent development of Jhunjhunwala's entity trimming its stake has cast a shadow on investor sentiment, leading to the current share price decline. This event highlights the inherent volatility and risk associated with share market investment, where even well-performing companies can experience fluctuations in their stock prices.
Despite the recent dip, Exicom Tele enjoys a significant advantage in the Indian EV charging sector thanks to its first-mover status. By the end of the financial year 2024, the company has impressively deployed over 65,000 chargers across more than 400 Indian cities. This extensive network has solidified Exicom Tele's position as the frontrunner in the residential charger segment, capturing a dominant 60% market share. Additionally, the company holds a respectable 25% share in the public charger segment.
The Indian government's strong push towards encouraging the adoption of electric vehicles presents a positive outlook for Exicom Tele. This government support is expected to propel the company's growth trajectory further.
The management team at Exicom Tele remains optimistic regarding the future of their EV charging business. This optimism is fueled by the constantly rising adoption of electric vehicles across various segments of the automotive industry.
For android only