Exicom Tele-Systems Limited has informed the Exchange about approval of conversion of Loan into equity of Exicom Power Solutions B.V., Wholly Owned Subsidiary.
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Exicom Tele-Systems' Board has approved raising up to ₹260 Crores through a Rights Issue of equity shares (face value ₹10) to existing eligible shareholders. The issue price, entitlement ratio, and record date will be decided later by a newly formed Rights Issue Committee. Separately, the Board approved converting an unsecured loan of approximately ₹283.20 Crores (including accrued interest) given to its wholly owned Dutch subsidiary, Exicom Power Solutions B.V., into ordinary equity shares of that subsidiary. The subsidiary, in the EV sector, reported a loss of around ₹16.39 Crores and negligible turnover (₹2.55 lakh) in FY25. No fresh cash is being infused — the loan is simply being reclassified as equity to ease the subsidiary's interest burden and improve its working capital.
The Rights Issue will dilute existing shareholders' stakes but bring in fresh capital for the company. The loan-to-equity conversion does not move cash, but signals the parent is writing down/restructuring its exposure to a loss-making subsidiary, which shareholders should monitor closely.