We wish to inform you that the Board of Directors (Board) of Exicom Tele-Systems Limited (Company), at its meeting held today i.e. Wednesday, June 25, 2025, has considered and approved funds raised through Rights issue and other items.
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The Board of Exicom Tele-Systems Limited has approved raising up to ₹260 Crores through a Rights Issue of equity shares (face value ₹10) to eligible existing shareholders. The detailed terms, including issue price, entitlement ratio, record date and payment schedule, will be decided later by a newly formed Rights Issue Committee. Separately, the Board approved converting an unsecured loan of about ₹283.20 Crores (including accrued interest) given to its wholly-owned Netherlands-based subsidiary, Exicom Power Solutions B.V., into ordinary equity shares of that subsidiary. This conversion aims to ease cash outflows on interest and improve the subsidiary's working capital, without any fresh cash outflow from the parent. Exicom Power Solutions B.V. operates in the electric vehicles sector and reported a loss of about ₹16.39 Crores against negligible turnover in FY25.
Shareholders may need to contribute additional capital if they wish to maintain their stake in the ₹260 Crore Rights Issue, which is typically priced at a discount and can create short-term price pressure. The loan-to-equity conversion is internal and does not affect parent-level cash flows, but it signals that the EV subsidiary continues to need balance sheet support.