Loading...
Category

IPO

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

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.

 

 

 

Thank You for reading this blog.
Hope you loved the IPO analysis.
Please Comment Below with your feedback because Your feedback motivates us to deliver more such content.

 

Follow MUKUL AGRAWAL for the latest IPO news and reviews. You can connect with us on social media platforms like Twitter, Facebook, and Instagram. You can also subscribe to our YouTube Channel for the latest videos of the stock market.

 



Frequently Asked Questions

+

The issue price of Exicom Tele-Systems IPO is fixed at Rs.135 to Rs.142 per share.

+

The IPO is open for subscription from February 27, 2024, to February 29, 2024.

+

The total issue size is Rs.429.00 CR, with reserved portions for institutional investors, non-institutional investors, and retail investors.

+

Early market entry, market dominance in EV Chargers, and vertical integration in product development are notable strengths.

+

Dependence on critical customers, global supply chain vulnerability, and dependence on the adoption of electric vehicles are highlighted weaknesses

+


Liked What You Just Read? Share this Post:




Viewer's Thoughts

Any Question or Suggestion

Post your Thoughts


IPO

Related Blogs

Bansal Wire Industries Limited-IPO

IPO | 01-07- 2024

Bansal Wire Industries Ltd IPO...

Explore Bansal Wire Industries Ltd IPO. Discover its Key Financials including financials, investment objectives, strengt...

Continue Reading
Emcure Pharmaceuticals Limited - IPO

IPO | 29-06- 2024

Emcure Pharmaceuticals Ltd IPO...

Explore Emcure Pharmaceuticals Limited's upcoming IPO, including financials, investment objectives, strengths, and weakn...

Continue Reading
Vraj Iron and Steel LTD IPO

IPO | 26-06- 2024

Vraj Iron and Steel LTD IPO: R...

Explore the Vraj Iron and Steel LTD IPO. its services, financials, IPO details & investment insights in this complete ov...

Continue Reading
Hyundai Motor India IPO

IPO | 24-06- 2024

Hyundai Motor India IPO : Revi...

Explore Hyundai Motor India IPO 2024, its overview, financial performance, issue size, opening & closing dates, lot deta...

Continue Reading
Allied Blenders and Distillers Limited-IPO

IPO | 22-06- 2024

Allied Blenders & Distillers L...

Explore Allied Blenders & Distillers Ltd IPO, its overview, financial performance, issue size, opening & closing dates, ...

Continue Reading
Stanley Lifestyles Limited-IPO

IPO | 18-06- 2024

Stanley Lifestyles IPO: Review...

Stanley Lifestyles Limited-IPO...

Continue Reading
to Learn Important Strategy worth Rs.15000