Exicom Tele-Systems IPO - Investment Rationale, Financials, Key Strategies, Risks And More: Anand Rathi

Anand Rathi's IPO Report

Exicom Tele-Systems Ltd. launched its initial public offering on Feb. 27 and the offer concludes today. The EV chargers maker has fixed a price band in the range of Rs 135 to Rs 142 apiece. The minimum order lot is 100.

The Rs 429 crore IPO comprises of a fresh issue of Rs 329 crore and an offer for sale of Rs 100 crore.

Object of fresh issue

• Part-financing the cost towards setting up production/assembly lines at the planned manufacturing facility in Telangana.

• Repayment and/ or pre-payment, in full or part, of certain borrowings availed by the company.

• Funding working capital requirements of the Company.

• General corporate purposes.

Valuation

Exicom Tele-System established player in the Indian EV charger market, with an early-mover-and-learner advantage in a fast growing industry characterized by high entry barriers and domain experience and know-how and diversified product portfolio with a track record of demonstrated outcomes in critical cases with vertically integrated operations, backed by manufacturing capabilities, robust supply chain, significant research and development activities and sales and marketing initiatives along with significant product development and focussed engineering capabilities.

At the upper price band company is valuing at price/earning of 28.00 times, enterprise value/Ebitda 33.98 times with a market cap of Rs 17,157 million post issue of equity shares and return on net worth of 13.38%.

We believe that the IPO is fairly priced and recommend a “Subscribe-Long term” rating to the IPO.

Click on the attachment to read the full IPO report:

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