Exicom Tele-Systems IPO Witnesses Strong Demand on Debut Day

Exicom Tele-Systems IPO Witnesses Strong Demand on Debut Day

Exicom Tele-Systems IPO Witnesses Strong Demand on Debut Day: IPO Overview

The ₹429 crore IPO of Exicom Tele-Systems garnered remarkable attention, being oversubscribed 10.02 times on its debut day. The IPO, open from February 27 to February 29, comprises a fresh issue of equity shares amounting to ₹329 crore and an Offer for Sale (OFS) component of up to 70.42 lakh equity shares by promoter NextWave Communications.

Exicom Tele-Systems IPO: Anchor Investor and Pre-IPO Placement

Prior to the IPO opening, Exicom Tele-Systems secured ₹178.05 crore from anchor investors. Additionally, the company conducted a pre-IPO placement of 52.59 lakh equity shares at ₹135 per share, aggregating ₹71 crore.

Also Read: JK Cement’s Rising Stock: Key Factors Driving Gains

Exicom Tele-Systems IPO: Investor Categories and Requirements

The IPO allocates at least 75% for Qualified Institutional Buyers (QIB), up to 10% for retail investors, and a maximum of 15% for non-institutional investors (NII). Retail investors can enter with a minimum investment of ₹14,200.

Business Segments

Exicom Tele-Systems operates in two primary segments:

1. Critical Power Solutions Business: Designs, manufactures, and services DC Power Systems and Li-ion-based energy storage solutions, catering to telecommunication sites and enterprises globally.
2. EV Charger Business: Focuses on providing smart charging systems equipped with innovative technology for residential, commercial, and public charging needs across India.

Exicom Tele-Systems IPO: Presence and Clientele

As of March 31, 2023, the company holds a 60% and 25% market share in the residential and public charging segments, respectively. In the critical power business, it commands a 16% market share in DC power systems and a 10% share in Li-ion batteries for telecommunications applications.

Exicom’s EV Charger Business serves diverse clients, including major national charging point operators (CPOs), fleet aggregators, and automotive OEMs such as Mahindra & Mahindra, MG Motors, and JBM.

Funds from the IPO will be utilized for setting up production lines, R&D, product development, and debt payment to support working capital needs.

Manufacturing Capability and Risks -Exicom Tele-Systems IPO

Exicom Tele-Systems has vertically integrated operations and in-house manufacturing capabilities with an annual capacity of 12,000 DC power systems and 44,400 AC and DC EV chargers across its three facilities in India.

Key risks include dependency on EV adoption, reliance on top customers, vulnerability to global suppliers for raw materials, and possible business impact due to the unavailability of critical components.

Peer Group and Financial Overview

Listed peers include Servotech Power Systems and HBL Power Systems. The company’s revenue, primarily from Critical Power Business, was ₹7,079 crore in FY23. In H1 FY24, it reported revenue of ₹4,550 crore and a profit after tax of ₹275 crore.

Electric Vehicles in India

Exicom Tele-Systems is poised to benefit from India’s growing EV market, witnessing remarkable growth in both passenger vehicles and electric buses. The EV sector in India is projected to continue its expansion, driven by technological advancements and supportive government policies.