Company Overview
Exicom, founded in 1994, operates in two distinct business verticals. Its primary focus lies in the critical power solutions business, specializing in designing, manufacturing, and servicing DC Power systems and Li-ion-based energy storage solutions. These solutions are integral to energy management at telecommunication sites within India and abroad. Exicom holds a significant market share of 16% in DC power systems and 10% in Li-ion battery applications for the telecom sector across India, Southeast Asia, and Africa.
| IPO Date | Feb 27, 2024, to Feb 29, 2024 |
| Price Band | ₹135 to ₹142 per share |
| Lot Size | 100 Shares |
| Issue Size | ₹329.00 Cr. |
| Allotment Date | 01 March 2024 |
| Listing Date | 05 March 2024 |
Additionally, in FY19, Exicom diversified its portfolio by entering the Electric Vehicles Chargers business. The company manufactures EV Chargers for residential and public charging stations within this segment, securing a substantial market share of 60% and 25% respectively. Its chargers are engineered to comply with global standards like CE and domestic standards such as those set by the Automotive Research Association of India (ARAI). Notably, Exicom has deployed over 61,000 EV chargers across 400 locations in India as of September 2023. The company serves a diverse clientele including prominent names like Reliance BP Mobility, Fortum Charge, BluSmart Mobility, Lithium Urban Technologies, and established OEMs such as Mahindra & Mahindra, MG Motors, and JBM Ltd. This broad customer base underscores Exicom’s reputation and market presence in both critical power solutions and electric vehicle charging infrastructure.
Objective of the IPO
Here are a few quick reasons why the company is going public:
1. An amount of Rs. 145.7 Cr is allocated for establishing production/assembly lines at a planned manufacturing facility in Telangana.
2. Additionally, Rs. 50.3 Cr will be utilized for repaying the Company’s borrowings.
3. Furthermore, Rs. 69 Cr is earmarked for funding the Company’s working capital requirements.
4. Moreover, Rs.4 Cr is designated for product development and Research & Development initiatives.
5. Allocation of funds for general corporate purposes.
Company Financials
| Period Ended | Total Assets | Total Revenue | Profit After Tax | Net Worth | Reserves & Surplus | Borrowings |
| 31-Mar-21 | 678.46 | 524.36 | 3.45 | 213.44 | 201.55 | 101.76 |
| 31-Mar-22 | 602.99 | 848.96 | 5.14 | 221.57 | 207.39 | 107.67 |
| 31-Mar-23 | 705.09 | 723.40 | 6.37 | 232.00 | 213.61 | 117.92 |
Key Performance Indicator
| Market Cap. (Cr.) | 1,715.71 | EPS (Rs) | 4.55 |
| ROE | 13.38% | Debt/Equity | 2.75% |
| ROCE | 10.92% | P/E | 31.24 |
Pros
- Exicom holds a significant advantage as an established player in the Electric Vehicle (EV) charging market, allowing it to secure a larger market share in both residential and public charging segments due to its early mover status.
- The EV charging industry presents high barriers to entry, as highlighted by a CRISIL report, owing to factors such as technological advancements, compatibility with grid infrastructure, and the need for strategic partnerships and alliances.
- The Company’s roots as a critical power solutions provider afford it valuable domain expertise and deep product knowledge, offering a competitive edge. Furthermore, its dedicated Research and Development team enables continuous innovation, ensuring relevance in a dynamic market landscape.
- Exicom’s vertically integrated operations across its three manufacturing units facilitate end-to-end solutions, encompassing concept development, design engineering, and prototype testing, all conducted in-house.
Cons
- The success of Exicom’s EV charger business is closely tied to the broader adoption of electric vehicles, making it vulnerable to fluctuations in EV market demand. Any significant shifts in mobility trends or a slowdown in EV adoption could have a notable impact on the Company’s performance.
- Furthermore, in its critical power business, Exicom heavily relies on telecom providers such as BSNL, Jio, and Indus Towers, who contribute nearly 50% of its revenue. Loss of business from these key clients could pose a significant risk to the Company’s financial stability.
- Exicom’s reliance on imports for over 65% of its raw material requirements presents another challenge. The Company depends on countries like China, Singapore, Hong Kong, and South Korea for crucial components such as Li-ion cells, battery packs, and semiconductors. Any disruptions in the global supply chain or changes in import regulations could potentially impact Exicom’s production capabilities and overall operations.
How to Apply for this IPO
1. Go to https://ipo.adityatrading.in/
2. Enter your Client ID
3. Enter the OTP received in your registered mobile number.
4. Choose the IPO and click on the apply button.
5. Enter the UPI ID and quantity, and Cut off the price.
6. Click on the submit button
7. Confirm the mandate request received on your phone by entering the UPI PIN.
You can also watch our YouTube video on “How to Apply on IPO” by clicking on the link “https://www.youtube.com/watch?v=1qOI8dCpl1I&ab_channel=ATS”
