EV Charger Company Exicom Tele-Systems IPO launched at Rs 135-142/share, targeting Rs 429 crore funds

Exicom Tele-Systems has kicked off its Initial Public Offering (IPO) today, presenting an opportunity for investors to buy into the company’s growth trajectory. The IPO is priced between Rs 135-142 per share, with the company aiming to raise Rs 429 crore from the market. Established in 1994, Exicom is renowned for its expertise in power management solutions, operating primarily in two key sectors: providing ‘critical power solutions’ to industries like telecom, which accounts for about 70% of its FY23 revenue, and manufacturing electric vehicle (EV) chargers.

The IPO comprises a fresh equity issue amounting to Rs 329 crore and an offer for sale of 70.42 lakh shares. Prior to the IPO launch, the company raised approximately Rs 178 crore from anchor investors.

The company’s EV chargers segment is particularly noteworthy, boasting a 60% market share in residential EV charging and a 25% share in the public charger space. Furthermore, Exicom supplies EV chargers to prominent automakers such as Mahindra & Mahindra and MG Motor, while also collaborating with major companies like Reliance Jio, Blu Smart Mobility, and Fortum Charge for public and fleet charging solutions.

In terms of financial performance, Exicom recorded a revenue of Rs 708 crore in FY23, marking a 16% year-on-year decline. Despite this, its Profit After Tax (PAT) increased by 3% to reach Rs 31 crore. The IPO proceeds, with a fresh issue of shares amounting to Rs 329 crore, will predominantly be utilized to establish a new manufacturing unit in Hyderabad.

Experts view Exicom as a compelling investment opportunity, especially considering its significant presence in the burgeoning EV charging infrastructure market. The company’s consumer-facing EV charging business has witnessed remarkable growth, expanding from 8% of total revenue in FY21 to 30% in FY23. Moreover, with the EV charging infrastructure industry projected to grow substantially, potentially reaching 6x-7x its current size by FY28, Exicom stands to benefit significantly from this trend.

Despite the IPO being considered reasonably priced, the grey market data suggests a potential listing at a substantial 92% premium. This indicates strong investor interest and confidence in Exicom’s growth prospects and underscores the excitement surrounding its IPO debut. Overall, Exicom Tele-Systems presents investors with an opportunity to tap into the promising EV market while also benefiting from its established presence in the critical power solutions sector.