Exicom Tele-Systems Ltd IPO - Review, Valuation, Date & GMP

Exicom Tele-Systems IPO  - Complete Overview

Exicom Tele-Systems, established in 1994, is a company that focuses on managing power and providing solutions for electric vehicles (EVs). They have two main areas of business:

1. EV Chargers Business:

Exicom designs and supplies smart charging systems for homes, businesses, and public spaces in India. They were pioneers in manufacturing EV chargers and currently hold a significant market share, with a strong presence in both residential (60%) and public (25%) charging segments. By September 2023, they had installed over 35,000 EV chargers across 400 locations in India.
 

2. Critical Power Business:

In this segment, Exicom creates, manufactures, and maintains crucial digital infrastructure technology. Their focus is on ensuring overall energy management at telecommunication sites and enterprise environments, both in India and internationally.

Financially, the company reported a 16% decline in revenue from operations to Rs 707.93 crore in FY23. However, the profit after tax increased by 24% to Rs 6.37 crore compared to the previous year. The Return on Capital Employed (RoCE) decreased from 17.66% in FY22 to 10.92% in FY23. Additionally, overseas customers contributed 8.79% to the total revenue from operations in FY23.

In simple terms, Exicom Tele-Systems plays an important role in providing power solutions and EV chargers in India, with a focus on both residential and public charging infrastructure. They also operate in critical power solutions for digital infrastructure, catering to telecommunication and enterprise needs.

 

Exicom Tele-Systems IPO Overview

Exicom Tele-Systems IPO date is slated to be open for subscription from February 27, 2024, to February 29, 2024. This BSE NSE IPO follows a Book Built Issue IPO.

Exicom Tele-Systems IPO price is fixed at Rs. Rs.135 - Rs. 142  per share. 

The total issue size of this IPO amounts to Rs. 429.00 CR. The company has reserved 75% for institutional investors, 15% for non-institutional investors, and 10% for retail investors. 

 

 

Company Financial

As of September 30, 2023, the company's good points include increased assets (Rs. 629.41 crore) and revenue (Rs. 467.21 crore). However, there are concerns as the Profit After Tax (PAT) decreased to Rs. 27.46 crore and net worth declined to Rs. 311.40 crore. Additionally, there is a borrowing of Rs. 72.84 crore, which should be monitored.

(Amount in Crore)

Period	Sep 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
Total Assets	629.41	705.09	602.99
Total Revenue	467.21	723.40	848.96
PAT	27.46	6.37	5.14
Net worth	311.40	232.00	221.57
Reserve & Surplus	204.95	213.61	207.39
Total Borrowings	72.84	117.92	107.67

 

Revenue Distribution Product Wise

In FY 2023, 70.06% of revenue came from the Critical Power Business and 29.94% from the EV Charger Business, compared to 91.56% and 8.44% respectively in FY 2022.

(in % age)

Particulars	Sep 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
Critical Power Business	70.06%	68.33%	91.56%
EV Charger Business	29.94%	31.67%	8.44%
Total	100.00%	100.00%	100.00%

 

Revenue Geographical State Wise

In the latest fiscal year, 61% of revenue came from domestic business, 33% from exports, totaling Rs. 707.93 crore. Last fiscal year, 36% ( came from domestic operations, and 64% from exports, totaling Rs. 842.80 crore.

(Amount in crores)

Particulars	Sep 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
Domestic Turnover	277.92	475.78	305.11
Export Turnover	177.11	232.14	537.68
Total	455.04	707.93	842.80

 

Revenue by Operations

For FY 2023, revenue from operations constituted approximately 99.06% (Rs. 8,42.80 crore), while other income contributed about 1.82% (Rs. 15.46 crore) to the total revenue of Rs. 8,48.95 crore.

(Amount in crores)

Particulars	Sep 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
(a) Revenue from operations	4,55.04	7,07.93	8,42.80
(b) Other Income	12.17	15.46	6.15
(a+b)Total Revenue	4,67.21	7,23.39	8,48.95

 

 

The Objective of the Issue

The company intends to use the net proceeds for the following objectives.

• Helping set up production lines in Telangana.

• Paying off some company debts.

• Supporting additional working capital needs.

• Investing in research and product development.

• Covering general corporate expenses.

 

Peers of Exicom Tele-Systems IPO

Exicom Tele-Systems IPO shares have a face value of Rs. 10 each, with a good P/E ratio of 3.38 and an EPS of Rs. 0.52, making it a competitive option compared to its peers.

Name of the Company	Face value (Rs. per share)	P/ E	EPS (Basic) (Rs.)
Exicom Tele-Systems Limited	10.00	42.01	3.38
Servotech Power Systems Limited	1.00	155.96	0.52
Hbl Power Systems Ltd.	1.00	139.30	3.51

 

Evaluation

The IPO is priced within the range of Rs. 135 to Rs. 142 per share.

 

Evaluation of P/E Ratio:

- Considering the FY23 EPS of Rs 3.38 from the last year, the resulting P/E ratio is 42.01x.

- Taking into account the weighted EPS of Rs 3.02 for the last three years, the P/E ratio amounts to 47.02x.

    

Comparative Analysis with Listed Peers:

- Servotech Power Systems Limited has a P/E ratio of 155.96x (the highest).

- Hbl Power Systems Ltd. has a P/E ratio of 139.30x (the lowest).

- The industry's average P/E is 147.63x.

 

As a result, the IPO price range, with a P/E ratio ranging from 42.01x to  47.02x, seems highly undervalued in comparison to the industry average of 147.63x.

 

IPO's Strengths

• Early Market Entry: Exicom was one of the first companies to join the EV Chargers manufacturing sector in India.

• Market Dominance: It holds a significant market share of 60% and 25% in the residential and public charging segments, respectively.

• Vertical Integration: The company has a vertically integrated approach, handling end-to-end product development. This includes concept, design, engineering, prototype testing, and in-house manufacturing, supported by dedicated R&D centres.

 

IPO's Weaknesses

• Dependence on Critical Customers: Over 50% of revenue from the critical power business comes from the top 5 customers. Losing any of these customers or a decrease in purchases could negatively impact the company.

 

• Global Supply Chain Dependency: About 65% of inputs in FY 2023 came from global suppliers, exposing the supply chain to the risk of global scarcity. This includes essential components like Li-ion cells, battery packs, semiconductors, and rectifier modules sourced from suppliers in China, Singapore, Hong Kong, and South Korea.

 

• EV Charger Business Dependence: The success of the EV Charger Business is closely tied to the rapid adoption and demand for electric vehicles. A slowdown in this trend could impact the business negatively.

 

 

IPO GMP Today

The Latest  GMP of Exicom Tele-Systems IPO is Rs.155.

 

Exicom Tele-Systems IPO Timetable (Tentative)

Events	Date
IPO Opening Date	27 February 2024
IPO Closing Date	29 February 2024
IPO Allotment Date	1 March 2024
Refund initiation	4 March 2024
IPO Listing Date	5 March 2024

 

Exicom Tele-Systems IPO Details

Exicom Tele-Systems IPO opens on February 27, 2024, with a face value of Rs.10 per share and an issue price range of Rs.135 to Rs.142 per share, offering a lot size of 100 shares at Rs.14,200.

IPO Opening & Closing Date	27 February to 29 February 2024
Face Value	Rs.10  per share
Issue Price	Rs.135 - Rs. 142  per share
Lot Size	100 Shares
Price of 1 lot	Rs.14,200
Total Issue Size	30,211,214 shares (aggregating up to Rs.429.00 Cr)
Offer for sale	7,042,200 shares of Rs. 10 (aggregating up to Rs. 100.00 Cr)
Fresh issue	23,169,014 shares (aggregating up to Rs. 329.00 Cr)
Listing at	BSE NSE
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Private Ltd

 

 

Exicom Tele-Systems IPO Lot Details

Exicom Tele-Systems IPO allows regular investors to buy 1 to 14 sets of shares, spending between Rs. 14,200 and Rs. 1,98,800. High Net Worth Individuals (HNIs) can invest in 15 to 70 sets, with an amount ranging from Rs. 2,13,000 to Rs. 9,94,000.

Application	Lot	Shares	Amount
Minimum Lot Investment (Retail)	1 lot	100	Rs.14,200
Maximum Lot Investment (Retail)	14 lot	1400	Rs.1,98,800
Minimum Lot Investment (HNI)	15 lot	1,500	Rs.2,13,000
Minimum Lot Investment (HNI)	70 lot	7,000	Rs.9,94,000

 

Exicom Tele-Systems IPO Reservation

QIB Shares Offered	Minimum 75%
Retail Shares Offered	Maximum 10%
Other Shares Offered	Maximum 15%

 

Promoters and Management of Exicom Tele-Systems IPO

1. Anant Nahata

2. NextWave Communications Private Limited

Pre-issue Promoter Shareholding	93.28%
Post-issue Promoter Shareholding

 

 

Exicom Tele-Systems IPO Lead Managers

• Monarch Networth Capital Ltd

• Unistone Capital Pvt Ltd

• Systematix Corporate Services Limited

 

Dividend Policy

The company hasn't paid dividends in past fiscal years. Whether we can pay them in the future depends on factors like profits, past dividend trends, capital needs, legal restrictions, and other relevant considerations evaluated by our Board.

 

Conclusion

In conclusion, Exicom Tele-Systems presents a compelling proposition with its established presence in the EV Chargers and Critical Power sectors. The IPO, open for subscription from February 27 to February 29, 2024, offers investors an opportunity to be part of a company that has been a pioneer in the EV Chargers manufacturing segment in India.

Financially, the company has shown resilience, navigating a 16% decline in revenue from operations in FY23 while achieving a 24% growth in profit after tax. The RoCE, though showing a decrease, remains at a respectable level. Overseas contributions to total revenue underscore the company's global footprint.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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