Exicom shares jump 11% after firm announces Rs 260-crore rights issue

The shares of Exicom Tele-Systems jumped nearly 11 percent on June 25 after the company announced two positive corporate announcements. The shares of the company closed at Rs 202 apiece.

The EV charger-maker announced in an exchange filing that its board has approved raising of funds worth up to Rs 260 crore through a rights issue. Accordingly, the company's board also approved the constitution of a rights issue committee to determine the issue price, record date, terms of payment and other details related to the rights issue. Exicom CEO and Managing Director Anant Nahata will be part of the committee.

Along with the right issue, the company's board approved the plan to convert an unsecured loan, which it had given to its wholly owned subsidiary Exicom Power Solutions BV, which is incorporated in Netherlands, into ordinary shares of the firm. The loan taken by Exicom Power Solutions amounts to nearly Rs 283.20 crore, including accrued interest.

"The proposed conversion is aimed at supporting the WOS’s liquidity and business operations by reducing cash outflows on account of interest and improving its working capital position. The conversion does not entail any fresh outflow of funds from the Company and represents a reclassification of the existing financial exposure from loan to equity," Exicom said in its exchange filing.