Gurugram based Power Management Solution Company Exicom Tele-Systems files DRHP with SEBI for the proposed IPO; Key Details here

Exicom Tele-Systems is into Power Power Management Solution and is looking raise funds through Fresh Issue and Offer For Sale

Exicom Tele-SystemsIPO: Fresh Issue of Equity shares aggregating up to Rs.400 crores. Offer of Sale of 7,400,000 Equity Shares through public issue IPO

Exicom Tele-Systems IPO: Exicom Tele-Systems Limited has filed Draft Red Herring Prospectus (DRHP) for proposed initial public offer (IPO) and raise funds through an offer of equity share capital having face value of Rs. 10 per share via initial public offering.

Initial Public Offer comprising of a Fresh Issue of Equity shares aggregating up to Rs 400 Cr and an Offer for Sale of up to 7,400,000 Equity Shares. Monarch Networth Capital, Unistone Capital, Systematix Corporate Services have been appointed as lead merchant bankers for the proposed IPO. It has appointed Link Intime (India) Pvt. Ltd. as Registrar and Share transfer Agent. Company is yet to finalize issue size and some other important details relating to the IPO.

Details about upcoming IPO:
As per the details available in DRHP, fundraising will consist of an Fresh Issue aggregating Rs. 400 Crs and offer-for-sale (OFS) of up to 7,400,000 equity shares by NextWave Communications Private Limited (Promoter) who will offload up to 7,400,000 Equity Shares..

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Objects of the issue:
1) Part-financing the cost towards setting up of production/assembly lines at the planned manufacturing facility in Telangana amount to Rs 151 cr, 2) Repayment/pre-payment of Debt of Rs 50.3 cr, 3) Part-funding incremental working capital requirements - Rs 69 cr.., 4) Investment in R&D and Product Developement - Rs 40 cr and General Corporate purpose..

Promoters of Exicom Tele-Systems are Nexwave Communications Pvt Ltd and Anant Nahata and holds 98.6% stake in the company.

About Company:
Incorporated in 1994, Exicom Tele-Systems is power management solutions provider, operating under two business verticals, (i) electric vehicle supply equipment (“EV Charger(s)”) solutions business, wherein it provide smart charging systems with innovative technology for residential, business, and public charging use in India (“EV Charger Business”); and (ii) critical power solutions business, wherein company design, manufacture and service critical digital infrastructure technology to deliver overall energy management at telecommunications sites and enterprise environments in India and overseas (“Critical Power Business”). Company is having market share of 60% and 25% in the residential and public charging segments respectively (Source: CRISIL Report). Furthermore, in Critical Power Business, it occupy a market share of 16% in the DC Power Systems market and has recognized for Li-ion Batteries for application in the telecommunication sector, having a market share of approximately 10% as of March 31, 2023 (Source: CRISIL Report).

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About Industry:
The increasing demand for mobile data and voice services, the growing adoption of 4G and 5G networks, and the need for reliable and uninterrupted power supply for telecommunication towers are the key factors driving the growth of the global telecommunication power market, which is projected to grow at a CAGR of 9.4% from 2023 to 2028, reaching USD 6.6 billion.
The market size for telecommunication DC power systems (including hybrid systems) in India is estimated at ₹ ~15 billion for Financial Year 2023, with upgradation and replacement demand expected to drive the industry with 75% demand while balance 25% demand expected on account of new tower additions. The ESS market for telecommunications is expected to grow from ₹ 19.5 billion in Financial Year 2023 to ₹ 36.1 billion in Financial Year 2028 at a CAGR of 13.5%, with an aggregate market potential of ₹ ~150 billion over Financial Year 2023 –Financial Year 2028, while market size of Li-ion battery energy storage systems in data centres is estimated to grow from ₹3.2 billion in 2023 to ₹ 47.0 billion in 2028.
Globally, the EV Charging market for public chargers is projected to grow exponentially from an estimated 2.61 million units in 2022 to 16.39 million units by 2027, at a CAGR of 44.4%. CRISIL MI&A estimates the current EV charging market in India to be valued at ~₹8.5 billion as of Financial Year 2023. (Source: CRISIL Report).

Source: SEBI, BSE, NSE, DRHP, Exicom Tele-Systems, Industry Data

Disclaimer: Above article only publishes details about the IPO for educational purpose and doesn't solicit or invite any interest to invest. Please visit respective sources to verify and know more details about the IPO. We advise investors to take opinion from certified/SEBI registered experts before taking any investment decisions.