Exicom Tele-Systems IPO; Power Management Solution company IPO to begin from February 27; 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-Systems to raise around Rs 429 crores through public issue IPO

Exicom Tele-Systems IPO is a public offering of shares by Nexwave Communications Pvt Ltd and Anant Nahata. The IPO will open on February 27 and will close on February 29. The price band is ₹135 to ₹142 per share and the lot size is 100 shares. The issue size is ₹429. crore. The shares are expected to be listed on NSE, BSE on March 05 (^). Some additional information that you may find useful are: Till FY23, deployed over 35,000 EV chargers across 400 locations in India and deployed 450,000 Li-ion Batteries for application in the telecommunications sector, equivalent to a storage capacity of over 2.00 GWH. Share of Revenue from Critical Power Systems and EV Charger for FY23/FY22/FY21 at 68.3% and 31.7% / 91.6% and 8.4% / 91.4% / 8.6% respectively. Orders received for Critical Power for in FY23/FY22/FY21 were at Rs 552.2 cr / Rs 658.4 Cr / Rs 639.4 Cr. While Orders received for EV Chargers for the same period at Rs 294.6 Cr / Rs 91.0 Cr / Rs 77.5 Cr respectively. Order backlog for FY23/FY22/FY21 at Rs 290.6 Cr / Rs 150.7 Cr / Rs 259.4 Cr respectively.: (**) - based on higher price band (^) indicative date

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Key Pointers of Exicom Tele-Systems IPO:

Promoters of the company are Nexwave Communications Pvt Ltd and Anant Nahata Currently promoters hold 93.29% stake in the company. While post-equity promoters stake will be 69.57%

Company has undertaken pre-IPO placement by the way of Private placement of Equity Shares and alloted 5,259,257 shares at a price of Rs 135per share (including a premium of ₹125.00 per equity share) for cash consideration aggregating to ₹ 710.00 million on January 3, 2024..

• Company aims to raise between Rs 424 to 429 crs through this IPO.
• The net proceeds of the issue will be utilized to 1) Part-financing the cost towards setting up of production/assembly lines at the planned manufacturing facility in Telangana amount to Rs 145.8 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.
• Anchor bidding is expected to commence one day prior to the IPO dates. Tentative anchor bidding date would be 26-Feb-24.
• Price band for the IPO has been fixed at Rs 135 to 142 per share and bid lot are in multiple of 100 shares. The implied market cap post-issue at Rs 1,647 to 1,716 crs.
• As per the tentative schedule, allotment date of this IPO is most likely on March 01 and share are expected to be listed on NSE, BSE on March 05.
• Company has direct peer competition in India'a Power system sector. In Listed space peers include Servotech Power Systems and HBL Power Systems among others.
• Monarch Networth Capital, Unistone Capital, Systematix Corporate Services has been appointed as Merchant Banker to the issue. Link Intime (India) Pvt. Ltd. has been appointed as official registrar of the issue.

About Exicom Tele-Systems Limited

Exicom Tele-Systems Limited

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).

Till FY23, deployed over 35,000 EV chargers across 400 locations in India and deployed 450,000 Li-ion Batteries for application in the telecommunications sector, equivalent to a storage capacity of over 2.00 GWH. Share of Revenue from Critical Power Systems and EV Charger for FY23/FY22/FY21 at 68.3% and 31.7% / 91.6% and 8.4% / 91.4% / 8.6% respectively. Orders received for Critical Power for in FY23/FY22/FY21 were at Rs 552.2 cr / Rs 658.4 Cr / Rs 639.4 Cr. While Orders received for EV Chargers for the same period at Rs 294.6 Cr / Rs 91.0 Cr / Rs 77.5 Cr respectively. Order backlog for FY23/FY22/FY21 at Rs 290.6 Cr / Rs 150.7 Cr / Rs 259.4 Cr respectively.

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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, IPO Status, Industry Data

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