Exicom Tele RI review - (May apply)

•    The company is engaged in the business of power management and EV charging solutions.
•    It marked de-growth in its top and bottom lines for the last two fiscals.
•    After initial gains, the counter witnessed average movement.
•    Based on its recent financial data, the issue appears aggressively priced.
•    The company has bright prospects ahead, provided it makes the headway in right direction.
•    Well-informed investors may park moderate funds for long term.

PREFACE:
The company came with its maiden IPO of Rs. 429.00 cr. in February 2024 at a price of Rs. 142 per share, and now coming with its RI at a price of Rs. 143 per share to mobilize Rs. 25.94 cr. The shares has marked average movements after initial gains. Though the segment appears to be a sunshine industry and the company is an early entrant in the field, it marked poor performance for FY25 that raise concern.

ABOUT COMPANY:
Exicom Tele-Systems Ltd. (ETSL) is in the business of power management solutions providing with two business verticals. It designs, manufactures, and services DC power system and Li-ion based energy storage solutions for telecom communications sites and enterprise environment as well as it supplies FV charging equipments for electric vehicles. It is the one of few early entrants in EV Charging solutions.  It enjoyed market share of 56% and 18.2% in respective segments as of March 31, 2025.

These products fall under the categories of Indoor/outdoor power stations, hybrid power systems, and Li-ion Batteries and under EV charging business, its service range includes AC Charges and DC Fast Chargers. If offers related services including supply of spares to its customers. For FY25, it served 118 diverse customers for critical power business and EV charger business. As of March 31, 2025, it had a total of 1252 employees and additional 328 employees with its subsidiaries.

ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 18140840 equity shares of Rs. 10 each at a fixed price of Rs. 143.00 per share to mobilize Rs. 25.94 cr. The RI is opening for subscription on July 15, 2025, and will close on July 30, 2025. The company is offering RI in the ratio of 3 for 20 to its eligible stakeholders as of the record date of July 07, 2025. 

The company is asking for full money on application for number of shares applied. Post allotment, shares will be listed on BSE and NSE. The company is spending Rs. 0.27 cr. for this RI process, and from the net proceeds, it will utilize Rs. 8.50 cr. for investment in wholly owned subsidiary Tritium Business, Rs. 16.19 cr. for repayment of certain borrowings, and Rs. 0.98 cr. for general corporate purposes. 

The RI is self-managed by the company itself, and MG Intime India Pvt. Ltd. is the registrar to the issue. Monarch Networth Capital Ltd. is the advisor to the issue.

Post RI, company’s current paid-up equity capital of Rs. 120.94 cr. will stand enhanced to Rs. 139.08 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 1988.84 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, it has posted a total revenue/ net profit/ -(loss), of Rs. Rs. 1019.60 cr.  / Rs. 63.92 cr. (FY24), Rs. 867.61 cr. / Rs. – (110.03) cr. (FY25). Its NAV stood at Rs. 50.80 per share as of March 31, 2025 against Rs. 75.65 as of March 31, 2024. It reported losses for FY25 and raised concern.

DIVIDEND POLICY:
The offer document is silent on its dividend policy. The company has not declared any dividends for the reported periods of the offer document. It will adopt a prudent dividend policy based on its financial performance and future prospects. 

SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 544133 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 200.90 on July 04, 2025, and opened on an ex-right basis at Rs. 192.50 on July 07, 2025. Since then, it has marked a high/low of Rs. 192.65 / Rs. 175.55. The scrip last closed at Rs. 176.65 as of July 11, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 464.65 / Rs. 125.49. 

The promoters’ holding has been constant at 69.57% for the last three quarters ended with March 31, 2025. The counter is currently trading above the RI price to tempt investors.

NOTE: Our family has token holding in this company, and we may participate in the RI for the entitlements along with applicable additional shares availability.