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Exicom Tele-Systems IPO Opens Tomorrow: Here Are the Six Reasons to Apply for the IPO

26 February 20246 mins read by Angel One
The upcoming IPO of Exicom Tele-Systems has a total size of Rs 429 crore, comprising both the fresh issue and an offer for sale.
Exicom Tele-Systems IPO Opens Tomorrow: Here Are the Six Reasons to Apply for the IPO
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Exicom Tele-Systems Limited, incorporated in 1994, specialises in power systems, electric vehicle (EV) charging, and other related solutions IPO is set to open tomorrow, February 27.

IPO Details

The Upcoming IPO of Exicom Tele-Systems will be open for subscription from February 27 and will close on February 29, eventually listing on March 5, 2024. The price band for the IPO is set at Rs 135 to Rs 142, having a face value of Rs 10 apiece and a lot size of 100 shares.

The total issue size of the IPO is Rs 429 crore, comprising both the fresh issue of 2.32 crore shares amounting to Rs 329 crore and an offer for sale of Rs 100, offloading around 0.70 crore shares by the existing shareholders. The IPO will be listed on both the BSE and NSE exchanges.

In Exicom Tele-Systems’ upcoming IPO, Qualified Institutional Buyers can subscribe to not less than 75% of the net issue, while retail investors a maximum of 10%. Non-Institutional Investors, including High Net Worth Individuals, are allocated not more than 15% of the net issue.

Monarch Networth Capital Ltd, Unistone Capital Pvt Ltd, and Systematix Corporate Services Limited are the book-running lead managers of the upcoming Exicom Tele-Systems IPO, while Link Intime India Private Ltd is the registrar for the issue.

Object of the Issue

The company proposes to utilise the net proceeds for the following purposes:

  • Part-financing the cost of setting up production/assembly lines at the planned manufacturing facility in Telangana.
  • Repayment/pre-payment, either in part or in full of certain borrowings of the company.
  • Part-funding incremental working capital requirements.
  • Investment in research and development (R&D) and product development.
  • General corporate purposes.

 Financial Performance

Particulars 30-Sep-23 31-Mar-23 31-Mar-22 31-Mar-21
Revenue 467.21 723.4 848.96 524.36
Profit After Tax 27.46 6.37 5.14 3.45
PAT % 5.88 0.88 0.61 0.66
Total Borrowing 72.84 117.92 107.67 101.76
Reserves and Surplus 204.95 213.61 207.39 201.55
Net Worth 311.4 232 221.57 213.44
Assets 629.41 705.09 602.99 678.46
Amount in Rs Crore
Key Performance Indicators
90.02 10.92 13.38 2.75 5.63

Business Overview

Exicom Tele-Systems Limited specializes in power systems, electric vehicle (EV) charging, and other related solutions. It was incorporated in 1994. The company operates under two business verticals.

Power Systems: It provides uninterrupted power solutions for digital communication networks.

EV Charging Solutions: It has deployed over 6,000 AC and DC chargers in India and Southeast Asia. Their EV charging solutions are designed to withstand harsh environmental and electrical conditions.

The company operates in the EV Charger business, offering both slow charging solutions (primarily AC chargers for residential use) and fast charging solutions (DC chargers for business and public charging networks in cities and highways). The customer base includes established automotive OEMs (for passenger cars and EV buses), charge point operators (CPOs), and fleet aggregators.

By September 30, 2023, the company had installed more than 61,000 EV chargers across 400 locations in India. As of September 30, 2023, the company has deployed 470,810 Li-ion Batteries for application in the telecommunications sector, equivalent to a storage capacity of over 2.10 GWH. The company has supplied its EV chargers to over 70 customers, including 15 automotive OEMs, 32 national and regional CPOs, and four fleet aggregators.

Here are the 6 reasons investors may consider applying for the IPO

  1. Established presence with early mover advantage: Exicom, as an early entrant in the EV Charging market, has successfully secured a substantial market share in both residential and public charging segments.
  2. High barrier industry: The EV charging industry presents high entry barriers, encompassing technological advancements, grid infrastructure compatibility, and the establishment of strategic partnerships and alliances.
  3. Domain expertise & product knowledge: Originating as a critical power solutions provider has equipped the company with a competitive edge in terms of profound product knowledge. The inclusion of a skilled R&D team ensures continuous innovation.
  4. Vertically integrated operations: The company’s three manufacturing units are vertically integrated, allowing it to offer end-to-end solutions from conceptualisation to design engineering and prototype testing all within the organisation.
  5. Long-standing customer relationships: Exicom, starting as a critical power solution provider to BSNL, has expanded its client base to include major names such as Jio-Infocom and Indus Towers, fostering enduring partnerships within the EV sector.
  6. Valuation and peer comparison: The company has two major competitors, namely, Servotech Power Systems and HBL Power Limited. When comparing the revenue of these three companies, Exicom falls in between its peers. Additionally, its diluted earnings per share (EPS) stand favourable when compared to the others. Examining the price-to-earnings (PE) ratio, pre-IPO, it is at 217.63 and is expected to decrease to 31.24 times post-IPO. In contrast, its peers are trading at PE ratios of 155.96 times and 139.30 times in the market.

Investors are advised to mark the date for IPO application.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.

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