Exicom Tele-Systems Limited IPO Review: Exicom Tele-Systems is coming up with its IPO issue of Rs. 429 Cr which will open on 27th February 2024. The issue will close on 29th February and be listed on the exchange on 5th March 2024. In this article, we will look at the Exicom Tele-Systems Limited IPO Review 2024 and analyze its strengths and weaknesses. Keep reading to find out!

About Exicom Tele-Systems Limited

Exicom is a power management solutions provider established in 1994. The Company functions under two separate business verticles.  Its predominant business is the critical power solutions business. Under this segment the Company designs, manufactures, and services DC Power systems and Li-ion based energy storage solutions. It provides overall energy management solutions at telecommunication sites in India as well as overseas. 

In the critical power segment, it has a market share of 16% in the DC power Systems and 10% in the Li-ion Battery applications for the telecom sector market. The business spans India, Southeast Asia, and Africa.  In FY19, Exicom ventured into the Electric Vehicles Chargers business. Under this segment, Exocom manufactures EV Chargers for both residential and public charging stations and it has a market share of 60% and 25% respectively. 

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The Company manufactures smart chargers compliant with global standards such as CE as well as domestic standards such as the Automotive Research Association of India (ARAI). As of September 2023, Exicom has deployed over 61,000 EV chargers across 400 locations in India.

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Customers of Exicom include the likes of Reliance BP Mobility and Fortum Charge. Fleet Aggregators such as BluSmart Mobility and Lithium Urban Technologies. Established OEMs such as Mahindra & Mahindra, MG Motors, and JBM Ltd.

The Company has three manufacturing facilities in Solan and Gurugram that have an annual capacity of manufacturing 12,000 DC Power Systems, and 44,400 AC and DC Chargers in a built-up area of 1.34 Lakh sq ft.

Exicom has vertically integrated end-to-end product management capabilities from concept to design engineering to prototype testing. It also houses two dedicated Research & Development centers in Gurugram and Bangalore. 

The R&D facility focuses on EV Charger development, battery pack, and battery management software development. In the critical power solutions business, the R&D team is working towards creating innovative Li-ion Battery & DC Power solutions that are cost-effective and maintain a technological edge.

About the Industry

As per a CRISIL Report, The telecommunications power systems market in India is expected to grow from approximately Rs. 1500 Cr in FY23 to Rs. 2200 Cr FY28 growing at a CAGR of 8.50%.  The energy storage solutions market for telecommunications is expected to grow from Rs. 1950 FY23 to Rs. 3610 Cr in FY28 at a CAGR of 13.10%.

As per CRISIL, the proliferation of data centers has heightened the demand for accompanying infrastructure, including energy solutions such as Li-on Batteries. 

The market size for Li-ion based battery energy storage solutions for data centers is estimated at approximately Rs. 320 Cr for FY23 and is projected to grow to Rs. 4700 Cr by FY28. Whether the growing quantity of data is exchanged through telecommunications networks or managed through data centers centrally in cloud locations, both enterprise solutions will require the need for critical power solutions to power their technology and data.

Driven by a global focus on energy transition, the world of transportation is moving towards electrification. As per CRISIL, the Indian EV industry is one of the fastest-growing markets which grew by 130% in FY23 from the previous year. The EV Private Vehicle is estimated to grow between FY23-FY28, at a CAGR of 50%-60% with 8-10% EV penetration. The EV bus market is estimated to achieve a penetration of 14-16% by FY28, growing at 55-60% CAGR. 

To support this market, the EV charging network will have to significantly ramp up capacity, representing a significant opportunity for the EV industry. The Total Addressable Market for EV charging products in India is expected to be Rs. 900-950 Cr as of FY28.

Exicom Tele-Systems IPO Review – Financials

Exicom earned a revenue of Rs. 708 Cr in FY23, which dropped by 16% from Rs. 843 Cr in FY22. The drop in revenue came as a result of low sales from the critical power business, while the EV charging business cushioned the blow growing by 215%. 

Since FY21 Exicom’s revenue from operations has increased at the rate of 17% CAGR. As of FY23, the Critical power business earns 68% of the revenue while the remaining 32% is earned from the EV Charging segment.

Despite a 16% drop in revenue in FY23, the Net Profits of the Company increased by 2%, and since FY21 net profits from continuing operations have increased by 56%. EBIT margins of the Company have taken a beating dropping from 6.2% in FY22 to 5.08% in FY23.

For, the past three years Exicom has booked Losses on discontinued operations of amounts Rs. 24.6 Cr, Rs. 25.2 Cr, and Rs. 26.2 Cr in FY23, FY22, and FY21 respectively. If we account for these losses then Exicom profits for the year would be Rs. 6.37 Cr, Rs. 5.1 Cr and Rs. 3.4 Cr respectively.

In terms of order inflow, since  FY22-23 there has been a 16% drop in orders for the critical segment, while the EV charger business orders have increased by 224%. As of September 2023, the order book remained at Rs. 581 Cr.

Exicom Tele-Systems – Financials
Exicom Tele-Systems – RHP of the Company
Source: RHP of the Company

Exicom Tele-Systems- Key Players 

Exicom has two Companies listed as its peers Servotech and HBL Power Systems. In terms of revenue, Exicom falls right in between its peers, with revenue nearly 6x that of Servotech and half of HBL Power. In terms of return on Equity, we see that servo is slightly inches higher than Exicom systems. It is important to note that an ROE of 13.38% is Exicom’s return on equity from continuing operations, while 2.75% is from continuing as well as discontinued operations.

As the business caters to the Electric Vehicle industry, it offers a high Price-to-earnings ratio of 156x and 139x. If we calculate Exicom’s Price to Earnings ratio using the higher end of the price band of Rs. 142, then its Profits from Continuing Operations will be 42x. Profit from both continued & discontinued operations will be 206x.

Exicom Tele-Systems- Key Players 
Source: RHP of the Company

Strengths of the Company 

  1. Established player with an early mover advantage: Being an early player in the EV Charging market, Exicom is able to capture a higher market share in the residential & public charging segment
  2. High Barrier Industry: As per the CRISIL report, the EV charging industry has high barriers to entry with regard to technology evolution, Grid Infrastructure compatibility, Partnerships, and alliances.
  3. Domain Expertise & Product Knowledge: Starting off as a critical power solutions supplier gives the Company a competitive edge in terms of product knowledge. Apart from this, housing a skillful R&D team means that the Company can always remain innovative
  4. Vertically Integrated Operations: The three manufacturing units of the Company are vertically integrated to provide solutions from concept to design engineering to prototype testing, all in-house.
  5. Long-standing relationship with customers: Exicom started its business as a critical power solution provider to BSNL and has since then added multiple clients like Jio-Infocom and Indus Towers. The Company enjoys partnerships with other big-name brands in the Ev space as well

Weaknesses of Company

  1. EV business reliant on great demand: The EV charger business is heavily reliant on the growing adoption of the EV industry for its own performance. Any radical change in mobility or slow down of EV adoption can significantly impact the Company
  2. Reliance on Telecom providers: In the critical power business, the Company is heavily reliant on telecom providers like BSNL, Jio, Indus towers, etc.. Loss of business from these heavyweights who bring in nearly 50% of the revenue could be detrimental to the Company.
  3. Reliance on Imports: The Company imports nearly 65%+ of its raw material requirements. It is dependent on countries like China, Singapore, Hong Kong, and South Korea for Li-ion cells, battery packs, and semiconductors.
  4. The constant requirement to Research & Develop: The success and failure of the business are heavily dependent on how the Company keeps up with the ever-changing technology. Exicom currently spends ~2% of its revenue on R&D expenses.

Exicom Tele-Systems Limited – GMP

The shares of Exicom Tele-Systems Ltd traded at a 64.08% premium in the grey market on 22nd February 2024. The shares in Grey Market traded at Rs 233. This gives it a premium of Rs 91 per share over the cap price of Rs 142.

Key Information of Exicom Tele-Systems IPO

IPO SizeRs. 429 Cr
Fresh IssueRs. 329 Cr
Offer for Sale (OFS) Rs. 100 Cr
Opening date27 February 2024
Closing date29 February 2024
Face ValueRs. 10
Price BandRs. 135 - 142
Lot Size100 Shares
Minimum Lot Size1 Lot (100 Shares)
Maximum Lot Size14 Lots (1400 Shares)
Min. InvestmentRs. 14,200
Listing Date5 March 2024

Promoters: Nextwave Communications Pvt ltd and Anant Nahata

Book Running Lead Manager: Monarch Networth Capital Ltd, Unistone Capital Pvt ltd, and Systematix Corporate Services Ltd

Registrar to the Offer: Link Intime India Pvt Ltd

The Objective of the Issue

  1. Rs. 145.7 Cr will be used towards setting up the production/assembly lines at a planned manufacturing facility in Telangana.
  2. Rs. 50.3 Cr will be used towards repayment of the Company’s borrowings.
  3. Rs. 69 Cr will be used towards funding the Company’s working capital requirements.
  4. Rs. 4 Cr will be used towards product development and R&D
  5. The remaining amount will be used for General Corporate Purposes


In conclusion, Exicom Tele-Systems is an established player in critical power solutions and has recently ventured into the EV charging business. As an entrant in the new and evolving industry, the company has an early mover advantage. Its strengths include domain expertise, vertically integrated operations, and long-standing customer relationships. However, the industry is constantly evolving Exicom must stay updated with the evolving trends.

Exicom Tele-Systems Limited IPO Review issue sounds well-planned with the proceeds used for capital expansion, R&D, and working capital requirements. However, the valuation at which the Company is offering its shares seems very exorbitant. With a Price to Earnings ratio of 206x, would you be willing to apply for the upcoming IPO of Exicom Tele-Systems? Let us know in the comments below.

Written by Nasir Hussain

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