Exicom Tele-Systems, a leading player in the electric vehicle (EV) charger manufacturing sector, is set to make waves with its upcoming Initial Public Offering (IPO). The IPO is set to open on February 27, comprising an Offer for Sale (OFS) of 7,400,000 shares and a fresh issue of INR 400 crore. Retail investors to be allotted 10% of the shares and the same will be listed on both BSE and NSE.
As the company gears up for its IPO, here’s a comprehensive overview of Exicom Tele-Systems and the key insights surrounding its public debut.
Established in 1994, Exicom Tele-Systems is a power management solutions provider based in India. The company has evolved over the years, introducing and commercializing 16 products.As of August 31, 2023, Exicom has a workforce of 1,124 employees in India, including technical professionals and contractual staff.
It operates in two primary business verticals:
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Critical Power Business:
- Focuses on offering comprehensive energy management solutions for telecommunications sites and enterprise environments.
- Provides DC power conversion systems (DC Power Systems) and Li-ion-based energy storage solutions, ensuring uninterrupted power supply during grid interruptions.
- Deployments span across India, South East Asia, and Africa.
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EV Charger Business:
- Launched in 2019, offering both slow charging (AC) solutions for residential use and fast charging (DC) solutions for businesses and public charging networks.
- Clients include major automotive OEMs, charge point operators, and fleet aggregators.
- Over 35,000 EV chargers installed at 400 locations in India as of March 2023.
- Holds a market share of around 60% in the residential charging segment and approximately 25% in the public charging segment within the Indian EV charging industry.
The Indian EV industry has witnessed rapid growth, exceeding 130% from FY 2022, showcasing significant potential despite the absence of FAME demand incentives. EV adoption is expected to surge across various vehicle segments, with the EV PV and bus market projected to expand nine times between FY 2023 and FY 2028. The total addressable market (TAM) for EV charging products in India is anticipated to reach INR 86 billion by FY 2028.
Operational Strengths:
- End-to-end product development capabilities with two dedicated Research and Development (R&D) centers.
- In-house manufacturing capability with three facilities in India, producing a diverse product portfolio.
- Annual capacity of 12,000 DC Power Systems and 44,400 AC and DC EV Chargers.
Market Opportunities:
- Projected growth in EV adoption creates opportunities for expanding the EV charging infrastructure.
- Estimated TAM for EV charging products in India to reach INR 86 billion by FY 2028.
Utilization of Net Proceeds:
- Setting up production/assembly lines at the planned manufacturing facility in Telangana.
- Funding incremental working capital requirements.
- Repayment/pre-payment of certain borrowings.
- Investment in R&D and product development.
- General corporate purposes.
Sales and Marketing Strategy:
- Direct sales in India with a network of channel partners and distributors in foreign markets.
- Sales teams strategically located across India and international hubs to cater to diverse regions and customer segments.
As Exicom Tele-Systems gears up for its IPO, the market awaits the company’s foray into the public domain, marking a significant chapter in its journey as a key player in the EV charging and power management solutions sector.
