Exicom Tele-Systems IPO Review

Exicom Tele-Systems Ltd is a power management solutions provider. The company operates in the electric vehicle charger business and critical power solutions business. Exicom Tele-Systems IPO is a book built issue of Rs 429.00 crores. The issue is a combination of fresh issue of 2.32 crore shares aggregating to Rs 329.00 crores and offer for sale of 0.7 crore shares aggregating to Rs 100.00 crores.

IPO opensFeb 27, 2024
IPO ClosesFeb 29, 2024
IPO Size (Rs.) ₹429.00 Cr
IPO Size (shares)30,211,214 shares
BreakupFresh issue ₹329.00 Cr + OFS 100 cr.
Face Value:₹ 10
IPO Price in Rs :₹135 to ₹142 per share
Minimum Lot100 Shares
Listing AtNSE, BSE
NII Quota~15%
Retail Quota~10%
 Lead ManagerMonarch Networth, Unistone Capital, Systematix Corporate
Registrar Link Intime India

About Exicom Tele-Systems:

  • Incorporated in 1994, Exicom Tele-Systems Ltd started as a power management solutions provider.
  • ETL was incorporated for the manufacturing of critical power components which find applications in the telecom sector. Reliance Jio Infocomm Limited which continues to be its largest client and the company has long association with RJIL.
  • The company operates under two business verticals.
  • First is the electric vehicle charger business which provides both slow charging solutions, primarily for residential use, as well as fast charging solutions, like DC chargers, for business and ‘public charging’ networks in cities, highways, automotive OEMs, charge point operators, and fleet aggregators.
  • The second is the critical power solutions business wherein they design, manufacture and service critical digital infrastructure technology for overall energy management at telecommunications sites and enterprise environments.
  • They offer a diversified portfolio of DC power conversion systems and Lithium ion-based energy storage solutions to deliver backup power during grid interruptions and have deployments in India, South East Asia and Africa.

Financials: Exicom Tele-Systems IPO

Particulars / Rs. Cr.2023(06)2022(06)2023(12)2022(12)2021(12)
Revenue from operations455.042215.949707.93842.805512.905
Profit after tax27.463-27.5516.3725.1363.45
Share capital92.3967.
Net worth311.403204.3231.999221.572213.442
Net asset value33.722.2225.2424.123.22
Total borrowings72.837116.129117.915107.669101.763
Post issue Share Capital121    
IPO price142.0    
EPS Fy230.5    
PE Fy23269.2    
EPS Fy24 (annualized)4.5    
PE Fy24  (annualized)31.2    
Market cap in cr1,715.6    
Market cap / Sales2.42    

Exicom Tele-Systems IPO: Anchors

(To be updated)

Exicom Tele-Systems IPO: Salient Points

  • There is a growing focus on expanding the charging infrastructure network across the country. Public charging stations are being installed in cities, highways, and commercial areas, making it more convenient for EV owners to charge their vehicles.
  • The electric passenger vehicle and bus market is estimated to grow 9x between the financial years ending on March 31, 2023 and March 31, 2028.
  • The telecommunications power systems market in India is expected to grow from approximately ₹15 billion in FY 2023 to ₹ 22 billion in FY 2028 at a CAGR of 8.50%.
  • It has 60% market share in EV charging segment
  • The segment poised for good prospects ahead with shift from conventional fuel to EV vehicles.
  • Product breakup
CategoryRevenue Sept 30, 2023 (Millions)% of Total Revenue from Operations
Total Critical Power Business3,187.8370.06
Total EV Charger1,362.5929.94
Total (A) + (B)4,550.42                                              100
  • Company intends to utilize the fresh issue portion of Net as follows:
ParticularsAmount (million)
Part-financing the cost towards setting up of production/assembly lines at the planned manufacturing facility in Telangana1,457.72
Repayment/pre-payment, in part or full, of certain borrowings of our Company502.98
Part-funding incremental working capital requirements690.00
Investment in R&D and product development400.00
General corporate purposes[●]
  • Orders received and Backlog
Order received2023(06)2022(06)2023(12)2022(12)2021(12)
Critical Power (₹ million)6,033.614,265.955,522.256,584.116,394.76
EV charger (₹ million)1,339.43855.992,946.53910.08775
Order backlog: (₹ million)5,809.892,417.672,906.241,507.062,594.07
  • Peers
Company/ Rs. Cr.CMP (Rs.)Revenues  (cr)Net Profit (cr)NPMRONWPEMcap/Sales
Exicom Tele-Systems142707.936.70.9%13.38269(31)2.42
Exhicom HY 24   6.0%   
Servotech Power Systems97.6274.881114.0%13.471447.38
HBL Power Systems5131368.6781087.9%10.35607.02
  • ABB, Delta Electronics, Exicom Tele-Systems Limited, Mass- Tech, Ador are some of the country’s major EVSE manufacturers, collaborating with leading EV OEMs to develop chargers based on the latest designs and algorithms.
  • The Company has strong research and development (R&D) capabilities leading to constant improvement and customization of its products. The company has in-house R&D Centre which is recognized by the Department of Science and Technology, GoI. The R&D team works in with IIT Chennai and Indian Institute of Science (IIS), Bangalore in the power domain for development of key technologies. This has enabled them to develop products for the EV segment—batteries and chargers.
  • In FY23, the company had spent Rs. 19.32 Cr (2.80% of the total cost) on Research & Development expenses and Rs. 19.22 Cr (2.38%) during the previous year.
  • The company’s clientele comprises of reputed telecom & other companies like Reliance Jio Infocomm Limited, BSNL, Indus Towers Limited, Mahindra & Mahindra Limited Tata Motors Passenger Vehicles Limited, Hindustan Petroleum Corporation Limited, among others.
  • The company marked a minor setback for FY23 top-line due to hiving off of its battery related business. The improvement in profitability margins is expected after this hiving off the lossmaking EV battery segment w.e.f. November 01, 2022.
  • The Union Minister of Heavy Industries sanctioned ₹ 800 crores in March 2023 under FAME India Scheme Phase II to the PSU Oil Marketing Companies (“OMCs”) – Indian Oil (“IOCL”), Bharat Petroleum (“BPCL”), and Hindustan Petroleum (“HPCL”) – for setting up 7432 public fast charging stations across the country.
  • The company was guided Mr. Anant Nahata, individual Promoter & as Managing Director lead the strategy and planning, product development, business development and marketing activities of Company. He is the son of Mr. Mahendra Nahata, who has been on the board of Reliance Jio for over a decade.
  • Exicom Tele-Systems IPO is coming at a PE ratio of 269x(fy23 earnings) and 31x (fy24 annualized earnings)
  • I intend to apply in Exicom Tele-Systems IPO subject to availability of funds. A major player like Exicom with good R&D can benefit considerably from expansion of its market in both EV Chargers and telecommunications power systems. The company has the advantage of being first or early mover in power management solution and EV charging infrastructure. All this in my view point out Exicom Tele-Systems IPO is a case of not be missed opportunity.
  • GMP as reported on social media has been Rs. 130 .
  • Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.

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