Exicom Tele-Systems IPO: EV Chargers & Critical Power Solutions Overview
Learn about Exicom Tele-Systems IPO, offering EV chargers & critical power solutions. Understand financials, IPO details, strengths, weaknesses, and more. Invest wisely!
sonu
Share this Post to earn Money ( Upto ₹100 per 1000 Views )
Exicom Tele-Systems IPO
Exicom Tele-Systems, founded in 1994, is a leading provider of power management solutions and electric vehicle (EV) charging infrastructure.
The company operates in two primary segments:
1. **EV Chargers Business:** Exicom is a pioneer in manufacturing smart charging systems for homes, businesses, and public spaces in India. With a strong market share in both residential and public charging segments, the company has installed over 35,000 EV chargers across 400 locations in India by September 2023.
2. **Critical Power Business:** This segment focuses on creating, manufacturing, and maintaining digital infrastructure technology for telecommunication sites and enterprise environments, catering to both domestic and international markets.
Company Financials :
Financially, Exicom reported a 16% decline in revenue from operations to Rs 707.93 crore in FY23, while profit after tax increased by 24% to Rs 6.37 crore. However, the Return on Capital Employed (RoCE) decreased from 17.66% in FY22 to 10.92% in FY23. Additionally, overseas customers contributed 8.79% to the total revenue from operations in FY23.
The Exicom Tele-Systems IPO is set to be open for subscription from February 27 to February 29, 2024, with a price range of Rs. 135 to Rs. 142 per share and a total issue size of Rs. 429.00 crore. Institutional investors are allocated 75%, with 15% for non-institutional investors and 10% for retail investors.
The company intends to utilize the net proceeds for various objectives, including setting up production lines, paying off debts, supporting working capital needs, investing in research and product development, and covering general corporate expenses.
Despite challenges such as dependence on critical customers and global supply chain dependency, Exicom Tele-Systems offers strengths like early market entry, market dominance in EV chargers, and a vertically integrated approach to product development.
The IPO's price range, with a P/E ratio ranging from 42.01x to 47.02x, seems highly undervalued compared to the industry average. Investors should carefully consider the company's strengths and weaknesses before making investment decisions.
