About the Company:
Exicom Tele Systems Ltd is an India headquartered power management solutions provider, operating under two business verticals namely Critical Power Business and EV Charger solutions business.
Company is amongst the first entrants in the EV Chargers manufacturing segment in India and as of March 31, 2023, and had a market share of 60% and 25% in the residential and public charging segments, respectively.
Furthermore, in the Critical Power Business, company occupies a market share of 16% in the DC Power Systems market and are recognized in the market for Li-ion Batteries for application in the telecommunications sector, having a market share of approximately 10% as of March 31, 2023.
Company is contributing to the sustainable energy transition by enabling electrification of transportation, and energy stability of digital communication infrastructure.
Company operates in two Business Verticals namely:
- Critical Power Business.
- EV Charger solutions business.
Critical Power Business:
- Company Critical Power Business delivers overall energy management at telecommunications sites and enterprise environments.
- Under this business vertical, company offers a diversified portfolio of DC power conversion systems and Li-ion based energy storage solutions to deliver back-up power during grid interruptions (“Li-ion Batteries” or “Energy Storage Solutions”) and have deployments in India, South East Asia and Africa.
- The DC Power Systems are typically customized to customers’ specifications for use cases at telecommunications sites, including at large central offices, renewable hybrid sites, base station sites (independent or shared) and small cell/Wi-Fi sites.
- As of September 30, 2023, Company has deployed 470,810 Li-ion Batteries for application in the telecommunications sector, equivalent to a storage capacity of over 2.10 GWH.
Electric Vehicle Supply Equipment Business (“EV Charger Business”)
- Company has leveraged nearly three decades of domain experience and know-how in power conversion, energy management and de-carbonization solutions, along with tapping into our existing manufacturing and supply chain operations, to commence our EV Charger Business in 2019.
- EV Charger business provides smart electric vehicle (“EV”) charging products and solutions.
- Company’s EV Charger Business provides slow charging solutions, i.e., AC chargers primarily for residential use, as well as fast charging solutions, i.e., DC chargers for business and ‘public charging’
networks in cities and on highways to a diverse customer base, including established automotive OEMs (passenger cars as well as EV buses), charge point operators (“CPOs”), and fleet aggregators. - As of September 30, 2023, Company had deployed over 61,000 EV chargers across 400 locations in India.
Company’s Customers in the EV Charging Business includes:
- Reliance BP Mobility Limited (JioBP).
- Fortum Charge & Drive India Private Limited.
- BluSmart Mobility.
- Lithium Urban Technologies.
- Mahindra & Mahindra Limited.
- MG Motors Limited
- JBM Limited.
Company’s Manufacturing Facilities:
Company has three manufacturing facilities in India at Solan, Himachal Pradesh and at Gurugram, Haryana, which have an annual capacity of 12,000 DC Power Systems; 44,400 AC chargers and DC fast chargers, and a total built-up area of 134,351.95 sq. ft.
Company’s International operations:
Company’s global presence is supported by our five Subsidiaries (including direct and indirect), Exicom Tele-Systems (Singapore) Pte. Ltd. in Singapore, Horizon Tele-System SDN BHD in Malaysia, Horizon Power Solutions DMCC and Horizon Power Solution L.L.C-FZ in U.A.E. and Exicom Power Solutions B.V in Netherlands.
Revenue from EV charger, Critical power Systems & Order Book:
Management Team:
- Mr. Anant Nahata (Designation: Managing Director and CEO)
- Mr. Himanshu Baid(Designation: Chairman and Independent Director)
Objectives of the Issue:
Offer for Sale (OFS): Rs.100 cr
- Company will not receive any proceeds from the Offer for Sale. The proceeds of the Offer for Sale will be received by the Promoter Selling Shareholder and will not form part of the Net Proceeds.
Fresh Issue: (Rs.329 cr)
- Part-financing the cost towards setting up of production/assembly lines at the planned manufacturing facility in Telangana.
- Repayment/pre-payment, in part or full of certain borrowings of our Company.
- Part-funding incremental working capital requirements.
- Investment in R&D and product development.
- General corporate purposes.
Fund Utilisation:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Part-financing the cost towards setting up of production/assembly lines at the planned manufacturing facility in Telangana. |
145.77 |
| Repayment/prepayment of certain indebtedness availed by our Company. | 50.29 |
| Part-funding incremental working capital requirements. | 69.0 |
| Investment in R&D and product development. | 40.0 |
Company’s Key Competitors:
- In India, Delta Electronics India Limited is company’s key competitor across business segments. The other key DC power solution providers are Vertiv Energy Private Ltd, Lineage Power, Vrinda Nano Technologies Pvt Ltd, and Greenpole Power Solutions India Private Ltd.
- While the key players in backup power segment who provide Li-ion based energy storage solutions are Coslight India Telecom, Vision India, Exide India Ltd, and Amara Raja Batteries Ltd.
Positives for the Company:
Established player with an early-mover-and-learner advantage in the Indian EV Charger market, a fastgrowing industry characterized by high entry barriers.
- Company had a market share of approximately 60% and 25% in the residential and public charging segments, respectively, as of March 31, 2023.
- As of September 30, 2023, Exicom has deployed over 61,000 EV chargers across 400 locations in India, by way of sale to OEMs, EV owners (primarily through such OEMs), CPOs for public charging stations and fleet aggregators for captive charging stations.
- Company has supplied EV Chargers to over 70 customers including 15 automotive OEMs, 32 national and regional CPOs and four fleet aggregators.
- By designing and manufacturing EV Chargers for residential, business, and public use, company aims to provide products for laying the infrastructure required to meet the demands of growing EV ownership in India.
EV Charger market is a High growth business segment.
- Company is amongst the first entrants in the EV Charger manufacturing segment in India, providing company with an early-mover-and-learner advantage in the Indian EV industry.
- EV chargers for commercial use and electric buses and is expected to cause the demand for EV Chargers for all key segments combined to grow at a CAGR of 55-60% between Financial Year ended March 31, 2023 and Financial Year ended March 31, 2028.
- The EV Charger market for public chargers is projected to grow from an estimated 2.61 million units in 2022 to 16.39 million units by 2027, at a CAGR of 44.40%.
- The electric charging infrastructure market is at a nascent stage in India at approximately ₹840 crore, however, with growth factors in the EV charging space present a significant, industry-wide market opportunity for EV charging products with a projected total addressable market of ₹ 9.0-9.5 billion by Financial Year ended March 31, 2028 in India.
Vertically integrated operations, backed by manufacturing capabilities, robust supply chain, significant research and development activities.
- Company’s operations are vertically integrated with end-to-end product development capabilities from concept to design to engineering to prototype testing, supported by two dedicated R&D centres, with our extensive product portfolio manufactured in-house at our three manufacturing facilities in India at Solan, Himachal Pradesh and at Gurugram, Haryana.
- Company’s manufacturing facilities have an annual capacity of 12,000 DC Power Systems; and 44,400 AC and DC EV Chargers, and a total built-up area of 134,351.95 sq. ft.
Track record of long-standing relationships with an established customer base.
- Company has served a diverse customer base through our Critical Power Business and EV Charger Business.
- Company commenced operation in 1994 as a critical power solutions provider, wherein we primarily supplied DC Power Systems to state owned Bharat Sanchar Nigam Limited (“BSNL”) and over time-added established telecommunications companies and tower companies as customers in India and overseas.
- Company serve telecommunications companies like Jio Infocom Limited, Maxis Telecom (an operator in South East Asia) and tower companies like American Tower Corp., Eastcastle Infrastructure DRC S.R.L.U. and Indus Tower.
Company plans to increase penetration in existing markets, and expand into new overseas markets.
- Company currently caters primarily to the requirements of the Indian market for Critical Power Business and EV Charger Business. However, company intends to further capitalize on our track record by adding new customers across geographies.
- Company intends to expand the customer base to overseas market in the EV Charger Business capitalizing on the growing EV adoption in the Southeast Asia and Europe and for which company has commenced setting up local sales and distribution networks in such regions.
- Company has received global and local country required certifications (certification received for Thailand, and Malaysia) to enable company to sell EV Charger products in South East Asia.
Expand the product portfolio to increase sales to existing customers and cater to new customer industries and use-cases.
- Company will continue to expand the product portfolio and plan to provide differentiated offerings to customers. Company seeks to leverage extensive experience to strengthen our industry position, by developing new products to capitalize on emerging trends.
- As EV adoption continues to increase, the global demand for charging infrastructure is likely to grow exponentially from 2.6 million units to 16.4 million units in 2027 at a CAGR of 44.4%.
Financials of the Company:
| (in Crores) | FY 21 | FY 22 | FY 23 | Upto 30th Sept 23 |
|---|---|---|---|---|
| Revenue | 524.3 | 848.9 | 723.3 | 467.2 |
| Net Profit | 3.4 | 5.1 | 6.3 | 27.4 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Exicom Tele-Systems Ltd | 10 | 3.38 | 42.01 | 13.38% | 25.24 |
| Servotech Power Systems Ltd | 1 | 0.56 | 155.96 | 13.47% | 3.86 |
| HBL Power Systems Ltd | 1 | 3.51 | 139.30 | 10.35% | 34.32 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 27th February 2024 |
| Issue Closes on | 29th February 2024 |
| Issue Price | Rs.135 – 142 |
| Face Value | Rs.10 |
| Retail Category Allocation | 10% |
| Minimum Lot | 100 Shares |
| Minimum Investment | Rs.14,200 |
| Issue Constitutes | 25 % |
| Issue Size | Rs.429 cr ($ 51 million ) |
| Market Cap | Rs.1716 cr ($ 206 million) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 2,31,69,014 (Rs.329 cr) |
| Equity Shares Offered (OFS) | 70,42,200 (Rs.100 cr) |
| Total Equity Shares Offered (Fresh + OFS) | 3,02,11,214 (Rs.429 cr) |
| Equity Shares Prior to the Issue | 9,76,55,501 |
| Equity Shares after the Issue | 12,08,24,515 |
Also Read : List of Upcoming IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | on or Before 1st March 2024 |
| Initiation of Refunds | on or Before 4th March 2024 |
| Credit of Equity Shares: | on or Before 4th March 2024 |
| Listing Date: | on or Before 5th March 2024 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 3.38 | 42.01 | 13.38% | 25.24 |
| Company Contact Info: |
|---|
| Exicom Tele Systems Ltd 3rd Floor, Plot No. 38, Institutional Area Sector 32, Gurugram 122 001 Haryana, India. Telephone: +91 124 6615 200 Email: investors@exicom.in Website: www.exicom.in |
| Registrar to the Issue: |
|---|
| Link Intime India Private Limited C-101, 1st Floor, 247 Park, Lal Bahadur Shastri Marg, Vikhroli (West) Mumbai, Maharashtra- 400083 Telephone Number: +91 810 811 4949 E-mail: exicom.ipo@linkintime.co.in Website: www.linkintime.co.in |
| Check IPO Allotment Status: |
|---|
Link InTime Website (Click on the below Link)https://linkintime.co.in/IPO_Allotment_Check |
