Exicom Share Price Jumps 12% Following ₹260 Crore Rights Issue Approval

Indian markets were seen trading in the green, with one stock, Exicom Tele-Systems, witnessing a double-digit move. Here's why the stock is up by 12% on June 25, 2025

Exicom Tele-Systems Share Price Jumps 12%

As of 2:27 PM on June 25, 2025, Exicom share price surged 12% to ₹204 per share on NSE. The spike followed key decisions taken at the company’s Board meeting earlier in the day, signalling both capital raising efforts and a strategic internal restructuring. Here’s a breakdown of the major developments.

Rights Issue To Raise Up To ₹260 Crore

Exicom Tele-Systems Limited has received Board approval to raise up to ₹260 crore by issuing equity shares via a rights issue. The offer will be made to existing eligible shareholders, with the record date and other specifics such as price and entitlement ratio to be determined by a designated Rights Issue Committee.

Conversion Of ₹283.2 Crore Loan Into Equity In Dutch Subsidiary

The Board has also approved the conversion of an unsecured loan and accrued interest, totalling ₹283.2 crore, into equity in its wholly owned subsidiary Exicom Power Solutions B.V., Netherlands.

This move aims to enhance liquidity and reduce the interest burden of the subsidiary, which operates in the electric vehicle sector. The conversion involves no fresh outflow of funds but reclassifies the existing financial exposure from debt to equity.

Objectives Behind The Conversion

The reclassification is expected to:

• Lower cash outflows by eliminating interest payments
• Improve the working capital position of the subsidiary
• Provide financial flexibility for operational needs

The shares will be issued at par (€1 per share), and the company will continue to hold 100% ownership of Exicom Power Solutions B.V.

Read More: BHEL Share Price Rise Despite Ceasefire; Stock Up 593% in 5 Years! 

Regulatory Compliance And Timelines

The conversion is classified as a related party transaction, given the subsidiary relationship. However, the company has stated it will be executed on an arm’s length basis and in accordance with the Foreign Exchange Management Act and other applicable laws.

The transaction will be completed in one or more tranches, based on regulatory clearances.

About The Subsidiary

Exicom Power Solutions B.V., incorporated in the Netherlands in January 2024, is involved in the wholesale of electronic and communication equipment. The entity recorded a turnover of just over ₹2.5 lakh in FY25, with a net loss of approximately ₹16.39 crore.

Conclusion 

Exicom Tele-Systems' strategic moves, including the rights issue and conversion of debt to equity in its Dutch subsidiary, are aimed at strengthening its financial position.

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