India’s first EV charging solutions company set to launch IPO soon
The company’s IPO aims to raise Rs 430 crore, of which Rs 330 crore will be reinvested into the company. The funds will be used to set up a manufacturing facility in Telangana, repay borrowings, meet working capital requirements and further invest in its R&D facility.
With the electric vehicle being the buzzword in India’s auto sector, there could be an interesting offering in the primary market space. Exicom Tele-Systems could become the first listed electric vehicle charging solutions company.
According to sources close to the development, Exicom Tele-Systems could launch its Initial Public Offering (IPO) by the end of February this year.
Exicom Tele-Systems operates in two major businesses. The first is the electric vehicle charging solutions business, which provides smart charging systems for residential, business, and public charging.
The company holds a 60% market share in residential and a 25% market share in public charging segments. Exicom Tele-Systems also provides critical power solutions at telecommunication and enterprise sites.
The company aims to raise approximately ₹430 crore through its public offer, out of which ₹330 crore would be through the fresh issuance of shares. Therefore, the funds would come into the company.
Exicom Tele-Systems plans to use the funds raised through the IPO towards setting up a manufacturing facility in Telangana, repaying borrowings, investing in its state-of-the-art R&D facility, and meeting working capital requirements.
Sources tell CNBC-TV18 that the company could price the IPO anywhere between ₹140-145 per share and is looking at a post-listing market capitalisation of ₹1,750 crore. Monarch Networth Capital and Systematix Corporate Services are the bankers for the IPO.
The listed company HDFC holds an 8.19% stake in Exicom Tele-Systems. NextWave Communications and Vinsan Brothers hold a 71% and 14% stake in the company, respectively.
Exicom Tele-Systems’ revenue was ₹708 crore in FY23, compared to ₹513 crore in FY22. The company is an important player in the electric vehicle charging space. Nearly 32% of the company’s revenue from operations comes from the electric vehicle charging solutions space.
The company’s profit after tax grew by 24% in FY23 and 50% in FY22. The company’s total borrowings stood at ₹118 crore at the end of FY23.
The total order received from the electric vehicle charging solutions business grew to ₹295 crore in FY23 from Rs 78 crore in FY21. Additionally, orders from the critical power business stood at ₹552 crore at the end of FY23.
(Edited by : Vivek Dubey)
First Published: Feb 5, 2024 4:50 PM IST
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