The electric vehicle charger manufacturing sector Exicom Tele-Systems aims to launch its IPO next week. The upcoming IPO includes a fresh issue of INR 400 crore, and an Offer for Sale (OFS) of 7,400,000 shares by existing investors. Here are the top things to know about Exicom Tele-Systems IPO.
#1 Exicom Tele-Systems IPO: Business Overview
Established in 1994, Exicom Tele-Systems is a power management solutions provider headquartered in India. Over the years, the company has developed and commercialized 16 products. Exicom operates in two distinct business verticals:
Critical Power Solutions Business: Global & Well-established Business
The Critical Power Business focuses on providing comprehensive energy management solutions for telecommunications sites and enterprise environments. Within this vertical, the company offers a diverse range of DC power conversion systems (DC Power Systems) and Li-ion-based energy storage solutions. These solutions ensure uninterrupted power supply during grid interruptions, utilizing Li-ion Batteries or ESS. The company’s deployments span across India, South East Asia, and Africa.
As of 31 March 2023, Exicom had successfully deployed DC Power Systems in 15 countries across South East Asia and Africa. Additionally, the company had installed 450,000 Li-ion Batteries for use in the telecommunications sector, providing a combined storage capacity exceeding 2 GWH.
EV Charger Business: Leadership in a Booming Segment
The EV Charger Business, initiated in 2019, offers both slow charging (AC) solutions for residential use and fast charging (DC) solutions for businesses and public charging networks in urban areas and along highways. Its clientele includes major automotive OEMs, charge point operators, and fleet aggregators. As of 31 March 2023, Exicom had installed over 35,000 EV chargers at 400 locations throughout India.
As of 31 March 2023, Exicom holds a market share of around 60% in the residential charging segment and approximately 25% in the public charging segment within the EV charging industry in India.
#2 Exicom Tele-Systems: Industry Outlook
According to a CRISIL Report, the Indian EV industry is experiencing rapid growth, with a remarkable increase of over 130% from FY 2022, despite the absence of FAME demand incentives. EV adoption is expected to surge across various vehicle segments, including two-wheelers (2W), three-wheelers (3W), passenger vehicles (PVs), buses, and commercial vehicles. The EV PV and bus market is projected to expand nine times between FY 2023 and FY 2028, with a CAGR of 50% to 60% and an EV penetration rate of 8% to 10%. Additionally, the electric bus market is forecasted to achieve a penetration rate of 14% to 16% by FY 2028, reflecting a growth CAGR of 55% to 60%.
To facilitate this transition to EVs, the EV charging infrastructure must expand its capabilities, offering a substantial market opportunity across the industry. By FY 2028, the projected total addressable market (TAM) for EV charging products in India is anticipated to reach INR 86 billion. Likewise, the market size for Li-ion-based battery Energy Storage Systems (ESS) for data centers is estimated to be approximately INR 3.20 billion for FY 2023 and is expected to expand to INR 47 billion by FY 2028.
#3 Exicom Tele-Systems IPO: Vertically Integrated Operations
The company possesses end-to-end product development capabilities, covering concept creation, design, engineering, and prototype testing. These capabilities are supported by its two dedicated Research and Development (R&D) centers, which collectively house 144 employees.
Another notable aspect of Exicom’s operations is its in-house manufacturing capability. The company’s diverse product portfolio is manufactured at three facilities located in Solan, Himachal Pradesh, and Gurugram, Haryana, India. These facilities have an annual capacity of producing 12,000 DC Power Systems and 44,400 AC and DC EV Chargers. In total, they occupy a built-up area of 134,351.95 square feet. Each manufacturing facility is equipped with dedicated production lines, as well as facilities for testing, quality assurance, and storage.
#4 Exicom Tele-Systems IPO: Offer Details
Exicom Tele-Systems IPO is scheduled to open next week. This offering comprises an Offer for Sale (OFS) of 7,400,000 shares, alongside a fresh issue of INR 400 crore. The retail investors will be allotted 10% of the shares. The IPO will be listed on both BSE and NSE.
#5 Exicom Tele-Systems IPO: Customers
Exicom Tele-Systems primarily serves customers in three end markets: i) EV charging, which includes automotive OEMs, CPOs, and fleet aggregators. Some of its notable clients in this segment are Mahindra and Mahindra, MG Motors, Reliance BP Mobility (JioBP), Fortum Charge & Drive India, and Blu Smart Mobility; ii) Communication Networks in countries such as India, Nepal, Malaysia, Indonesia, the Philippines, Nigeria, Tanzania, Kenya, and the Republic of Congo. The company provides services to clients such as Reliance Jio Telecom (India’s largest 4G operator), Indus Towers, BSNL (PSU), Maxis Telecom in Malaysia, and tower companies like American Tower Corp, Eastcastle Infrastructure DRC S.R.L.U., and Indus Tower; and iii) Data Centers.
#6 Exicom Tele-Systems IPO: Objects of the Issue
The company proposes to utilize the Net Proceeds towards funding the following objects:
- Part-financing the cost of setting up production/assembly lines at the planned manufacturing facility in Telangana – INR 151.47 crore
- Part-funding incremental working capital requirements – INR 69.0 crore
- Repayment/pre-payment, in part or full of certain borrowings of the company – INR 50.30 crore
- Investment in R&D and product development – INR 40.0 crore
- General corporate purposes
#7 Exicom Tele-Systems IPO: Financial Performance and Valuations
| Â | FY 2021 | FY 2022 | FY 2023 |
| Revenue | 512.91 | 842.81 | 707.93 |
| Expenses | 511.54 | 809.19 | 690.96 |
| Net income | 3.45 | 5.14 | 6.37 |
| Margin (%) | 0.67 | 0.61 | 0.90 |
| FY 2021 | FY 2022 | FY 2023 | |
| EPS | 1.38 | 3.31 | 3.38 |
| PE ratio | – | – | – |
| RONW (%) | 5.94 | 13.72 | 13.38 |
| NAV | 23.22 | 24.10 | 25.24 |
| ROCE (%) | 5.33 | 17.66 | 10.92 |
| EBITDA (%) | 5.71 | 8.00 | 7.41 |
| Debt/Equity | 0.50 | 0.38 | 0.41 |
#8 Exicom Tele-Systems IPO: Sales and Marketing
The company primarily utilizes direct sales in India as its main selling method. However, it also leverages a network of channel partners and distributors in foreign markets. In total, the company’s sales and marketing team consists of 31 members across both business verticals and various regions in India, Southeast Asia, and Africa.
EV Charger Business: The company has sales teams located in Gurugram, Haryana; Pune, Maharashtra; Mumbai, Maharashtra; and Bengaluru, Karnataka. These teams engage with automotive OEMs to bundle home chargers with EV sales.
Critical Power Business: The company typically engages directly with its customers to offer customized solutions tailored to their specifications. Its domestic sales teams are based in Delhi and Mumbai, Maharashtra, while the international sales team operates from Manchester (United Kingdom), Amsterdam (Netherlands), Singapore, Kuala Lumpur (Malaysia), Jakarta (Indonesia), Dubai (U.A.E.), Lagos (Nigeria), and Dar es Salaam (Tanzania) to serve its overseas customers.
#9 Exicom Tele-Systems IPO: Employees
As of 31 August 2023, the company has a workforce of 1,124 employees in India, comprising 421 contractual staff not on its rolls. Among them, 705 employees possess technical qualifications, with 431 holding diplomas and 274 having engineering degrees. Additionally, the company has 43 employees at its subsidiaries.
#10 Exicom Tele-Systems IPO: Comparison with Listed Peers
Set forth below is a comparison of the key accounting ratios against those of its peers that are Indian-listed companies as of and for the FY 2023:
| Company | PE ratio | EPS | RONW (%) | NAV | Revenue (Cr.) |
| Exicom Tele-Systems | – | 3.38 | 13.38 | 25.24 | 707.93 |
| Servotech Power systems | 158.37 | 0.56 | 13.47 | 3.86 | 278.48 |
| HBL Power Systems | 75.70 | 3.51 | 10.35 | 34.32 | 1,368.67 |
